{"id":121745,"date":"2017-03-23T12:07:13","date_gmt":"2017-03-23T19:07:13","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=121745"},"modified":"2025-03-14T09:32:28","modified_gmt":"2025-03-14T09:32:28","slug":"bankrupt-loans","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/personal-loans\/bankrupt-loans","title":{"rendered":"Getting a loan after bankruptcy"},"content":{"rendered":"

Can I get a loan while bankrupt?<\/h3>

Theoretically yes \u2013 it’s not illegal. You do however have to disclose that you are bankrupt if you apply for credit of more than \u00a3500. Below this amount, lenders may still ask during the application process, and you must answer truthfully. Lenders can also see if you have a bankruptcy on your credit report. <\/p>

You’ll be extremely limited in terms of the lenders you can choose from, and the interest rates are likely to be a lot higher that what you may have seen promoted by mainstream banks.<\/p>

If at all possible, wait until your bankruptcy is over before applying. Borrowing will be very expensive. Applying for a loan when you\u2019re in any challenging financial situation isn\u2019t a decision that should be taken lightly, and 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, or if you can defer the expenditure.<\/p>

Can I get a loan if I have a bankruptcy on my credit report?<\/h3>

Bankruptcy stays on your credit report for 6 years. Having a bankruptcy on your credit report may look bad to most traditional lenders, but some specialist lenders may be more lenient in their eligibility criteria, often focusing on an applicant’s ability to repay.<\/p>

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?<\/p>

For larger sums, say over \u00a310,000, another option might be a secured loan<\/a>. These involve putting your house on the line as a guarantee to the lender, so they’re very much not to be entered into lightly. But putting up collateral may get you a lower rate, since there’s less risk to the lender that they won’t get their money back.<\/p>

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While it’s possible to get a loan if you’ve declared bankruptcy, it’s important that you don’t take out a loan you can’t afford, as this will likely cause you more financial difficulty. <\/p>\u201d<\/p>\n