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Compare your options for a short-term loan after bankruptcy
Bankruptcy doesn’t have to be the end of the road. Here’s how to get a loan after you’ve been declared bankrupt.
What's in this guide?
Filing for bankruptcy isn’t an easy step for anyone to take. However, the most difficult process usually comes when you’re trying to rebuild your finances, your credit and your life. During your bankruptcy or after you’re discharged, you may find yourself in need of a loan, and there are lenders who might consider you for a second chance.
Our top pick: OppLoans Installment Loans
Our top pick: OppLoans Installment Loans
Can I get a loan while bankrupt?
Possibly. You’ll be more limited in terms of the lenders you have to choose from, but there are options available to you. The fees and rates may be considerably higher on loan after bankruptcy, and you may be required to attach an asset as security or apply with a guarantor.
Which lenders accept applicants who’ve filed for bankruptcy?
See which lenders may approve your loan application even if you’ve previously filed for bankruptcy. In addition, see lenders that accept applicants with alternate incomes such as welfare or unemployment.
| Provider | Generally accepted | Conditions |
|---|---|---|
| ACE Cash Express |  | Must not currently be a debtor in bankruptcy or intend to voluntarily file for bankruptcy. |
| Advance America |  | Full application determines whether it’s acceptable or not. |
| CashNetUSA |  | Discharge from bankruptcy is acceptable. |
| Cash Central | | Full application determines whether it’s acceptable or not. |
| Check City | | Bankruptcy that’s been discharged for 30 days is acceptable. |
| Check into Cash | | Full application determines whether it’s acceptable or not. |
| LendUp | | Full application determines whether it’s acceptable or not. |
| LendYou | | Full application determines whether it’s acceptable or not. |
| OppLoans | | Discharge from bankruptcy is acceptable. |
Compare short-term loans you can apply for online
Be sure to visit the lender’s website or call their customer service line to confirm the eligibility criteria before applying to make sure they accept applicants in bankruptcy or with bankruptcy on their credit reports.
Updated March 28th, 2020
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Can I get a loan if I have a bankruptcy on my credit report?
Having a bankruptcy on your credit report may look bad to most traditional lenders, but lenders offering short-term loans tend to be more lenient in their eligibility criteria. You may want to consider applying for a bad credit loan to increase your chances of approval. Check out the lenders in our comparison table below to see the requirements.
Before you apply for a loan while bankrupt…
- As your assets and income may have been affected by bankruptcy, deciding whether or not you can afford the repayments is an important consideration. What will your repayments be and how will they work with your budget?
- Applying for a loan when you’re in any challenging financial situation isn’t a decision that should be taken lightly. This is especially true when you’re bankrupt. Consider why you’re taking out the loan and if there’s any other way you can pay for what you need.
What kind of bankrupt loans are available?
If you’re in need of financing and you’re currently bankrupt or have a bankruptcy listed on your credit report, the following loan options might be an available to you
- Payday loan. These are short-term loans up to $2,000 with repayment terms between two weeks and one year. Lenders have flexible lending criteria, and while they won’t all consider bankrupt applicants, some will.
- Bad credit personal loan. Bad credit personal loans are available from certain lenders, some for large amounts up to $10,000.
- Auto title loan. Secured loans can be easier to be approved for than unsecured loans as they are less of a risk to a lender. You can consider an auto title loan and attach your vehicle to the loan as security.
- Personal overdraft. Your current bank may be willing to approve you for a small overdraft if you have a good history with the bank. This allows you to withdraw cash above your available balance.
Find out if short-term loans cause bankruptcy and how to avoid defaulting
How can I be approved for a bankrupt loan?
While there are lenders who will consider applicants who are in bankruptcy or who have previously been bankrupt, filling out the application isn’t all it takes to be approved. Here are some of the criteria that’ll likely be in place when you’re considered for a bankrupt loan:
- Ability to manage your repayments. This is the main requirement lenders have when considering you for a loan. Does your income allow you to easily manage your repayments after taking into account your liabilities and debts? If your repayments will be manageable and you meet the lender’s other criteria, you’ll be able to apply.
- Employment. You may be required to be employed, although there are some unemployed loans available. Different lenders have different restrictions. Some might not consider you if you’re self-employed or work part-time. Check with the lender before applying.
- Welfare. While you may still be considered for a loan if you receive welfare payments, lenders often have restrictions as to what percentage of your income can be made up of benefits (usually 50% if the restriction is in place). Usually, your loan repayments can’t exceed a certain percentage of your welfare income.
- Income. How much do you earn? Lenders often have minimum income requirements in place. They may allow your income to be from employment and welfare or may need it to be solely from regular employment.
- Assets. For loans after bankruptcy, the lender may require you to secure an asset to the loan as a guarantee in case you default.
- Guarantor. If you don’t meet the lender’s criteria, you may be able to apply with a guarantor to increase your chances of being approved.
How does bankruptcy affect my credit and loan eligibility?
Are you currently in bankruptcy or have a bankruptcy on your credit report? Understanding the effects it has on your credit and your loan eligibility is important.
- Your credit report. Chapter 7 bankruptcies remain on your credit report for up to 10 years. Other types remain on your credit report for up to 7 years.
- Your credit score before bankruptcy. If you had poor or bad credit before you declared bankruptcy, then your credit won’t take a huge hit. This means lenders will take into account your history before and after bankruptcy and make a decision based off all the facts.
- Loan eligibility. Lenders may view your application as risky since you’ve demonstrated your inability to pay back your debts in the past. Once you find a lender willing to provide you with a loan, make sure you’re able to repay it in order to avoid falling into a debt spiral again.
- Higher interest. Be aware that you can’t file for bankruptcy again for a few years. This means that predatory lenders–both for cash advances and credit cards–will offer you money at very high interest rates. If you can avoid taking out a loan, you should. Otherwise, you might find yourself stuck in another, often worse, debt spiral.
- Building a positive payment history. If you do decide to get a loan, pay it off on time! This will help rebuild your credit after bankruptcy, and that means you’ll have access to better rates down the road.
Are payday loans available in my state?
Frequently asked questions
Ask an Expert
My late wife and I filed chapter 7 in 2010. Can I still get a $3,000 personal loan to pay off 2 credit cards? My local RD Bank just rejected me because of the Chapter 7.
Hi Ed,
Thanks for getting in touch with finder. I hope all is well with you. :)
Yes, you may still be able to apply for a personal loan even if you have filed bankruptcy. On this page, you’ll find a table above that lists your options. Please explore that table and once you find the right one for you, click on their name. Please do not forget to read the full T&Cs and PDS or details of the loan product before applying and making a financial decision. It would also be helpful to review the criteria, details of the loan product and contact the lender directly to discuss your loan options and eligibility.
It is worth noting that bankruptcy stays on your credit file for 5 years from the date you officially became bankrupt or
2 years from the date your bankruptcy was discharged – whichever is later. Learn more about bankruptcy through this guide.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
I filed for bankruptcy 18 months ago. Now hit with two months of 1200. Electric bill. I have two weeks to pay.
Everything else is do now. We just need a couple of months to catch up. We both work and are worried if they turn off electricity. The deposit will be on top of it. We have 8 people in our home.
Will anyone lend us money to catchup .
Hi Ina,
Thanks for getting in touch with finder. I hope all is well with you. :)
You may still be able to apply for a loan given with your situation. As long as you are able to meet the lender’s requirements and you prove to them that you are able to make repayments, then you should be able to get a loan.
Be sure to explore your options by using our comparison table. You can compare them by max loan amount, turnaround time, and requirements. Once you’re done comparing, click on the “Go to site” green button of your desired lender to initiate your application or to learn more.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
I had chapter 13 bankruptcy in 2010. I would like to get a loan for $3000 paid off in 24mo. I am in need of transportation. My credit score is 705. Do I have a chance at a loan.
Hi Tamrock,
Thanks for leaving a question on finder.
You’ll be more limited in terms of the lenders you have to choose from, but there are options available to you. The fees and rates may be considerably higher on loan after bankruptcy, and you may be required to attach an asset as security or apply with a guarantor. You can compare from the lenders we have featured above. Once you have decided on the suited loan for your needs, you may click on the green ‘Go to site’ button to submit your application or know more about the loan offer.
Cheers,
Joel
I am in chapter 13 will I be able to get a loan?
Hi Clinton,
Thank you for your inquiry.
Yes, you can still apply for a loan while in bankruptcy. It will be difficult to get approved by a lender, but lenders offering short-term loans tend to be more lenient in their eligibility criteria.
You may compare your options on this page for short-term loans. Before applying for any loan, please ensure that you meet the eligibility criteria and requirements of the loan option or lender and make sure to read the details, as well as the relevant PDS/ T&Cs of the loan option before making a decision and consider whether the product or option is right for you.
Best regards,
Rench
Can i get a title loan after filing for chapter 7 in AZ?
Hi Tammy,
Thank you for your inquiry.
If you wish to apply for a loan specifically from the lenders in AZ you may want to consider the options here.
I hope this information has helped.
Cheers,
Harold
Hi hi I filed for a chapter 7 bankruptcy back in April but I need a personal loan to pay off some remaining bills that I have.
Hi Thary,
Thank you for your inquiry.
Generally, chapter 7 bankruptcies remain on your credit report for up to 10 years. Other types remain on your credit report for up to 7 years. What you can do next is you can review different lenders’ eligibility criteria and call their customer service lines in order to find out which ones would consider bankrupt applicants before applying.
I hope this information has helped.
Cheers,
Harold
I just got out of chapter 7 bankruptcy in April.I am looking for a lender for a personal loan for home improvement.
Hi Steve,
Thanks for reaching out to us. Please note that we are not affiliated with any company we feature on our site and so we can only offer you general advice.
You’re actually already on the correct page on where you can compare your options for loans that you can apply after bankruptcy.
You can also have a look on this page for home improvement loans.
Please click the name of your preferred lender to find out the details and the minimum eligibility. You may then click the green “Go to Site” button to submit your loan application online.
Best regards,
Rench
I am at the end of my bankruptcy and I need a balloon payment of 9000.00 to get discharged clean so everything i was trying to accomplish will be done, my mortgage payments went up slightly causing the need for this, can i get a loan to help end this so I can put this to and end and come out better than i was
Hi Keith,
Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.
You are on the right page. You may review and compare the offers available on the table. Once you have selected one, you may proceed by clicking the green “Go to Site” button.
I hope this helps.
Cheers,
Danielle
Are there any banks that offer auto loans while in open bankruptcy?
Hi Aj,
Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.
We don’t have a specific article listing options for your concern, however you may refer to this page for options that may suit your needs. You may review and compare the offers available on the table. Once you have selected one, you may proceed by clicking the green “Go to Site” button.
I hope this helps.
Cheers,
Danielle
My car got repossessed and I’m trying to find a lender that is willing to refinance my car so I can get it back
Hi Michelle,
Thank you for your inquiry.
Refinancing can offer you a better rate and lower repayments, and is an option available from many lenders. Please check your list of available options here http://bit.ly/2v3qFzE.
I hope this information has helped.
Cheers,
Harold