Can you still get a loan if you have gone bankrupt in the past? If you have experienced personal bankruptcy, it may still be possible to get a loan. However, you should expect more challenging criteria standing in the way of getting approval for a loan, especially if you take a traditional route to borrow money.
At AMETA Finance Group, we are paving the way to loan accessibility for all. Whether you have gone bankrupt in the past, are struggling with a low credit score, or simply need capital faster than typical loan processes will allow, we are here to help. With an asset loan from AMETA, you will be able to access up to $5 million in funds by leveraging one of your valuable assets. Our low interest rates, quick turnaround times, and flexible terms complete the picture.
What is the catch? There is no catch. At AMETA Finance Group, your financial possibilities are endless. Today, we are going to walk through how to get a loan if you have gone bankrupt in the past, highlighting key lending options, important criteria to look for, and how to find a reliable lender for asset loans online.
Getting a Loan After Bankruptcy
You have probably heard of businesses going bankrupt, but did you know that individuals can declare bankruptcy as well? Bankruptcy is a legal process to help individuals eliminate part or all of overwhelming debt that they will not be able to pay. Of course, bankruptcy comes with serious consequences. One of the most damaging results is a major hit to your credit score.
A standard personal loan provider takes your credit score into account as a key factor when determining whether to lend you money, how much money to lend you, and what interest rate to charge. For those with poor credit or those who have experienced bankruptcy, this can be a significant obstacle. As such, many people pursue alternative lending options.
If a traditional personal loan is not a possibility for you, an asset loan might be the perfect solution. Asset loans are generally more accessible for those who have poor credit or who have experienced bankruptcy. Why? They do not require an investigation into your credit. You do not even need to provide tax returns or other proof of income in order to obtain an asset loan.
The Flexibility of Asset Loans
Compared with traditional personal loans, asset loans offer enhanced flexibility and accessibility, no matter what your financial history looks like. With an asset loan, you will borrow against a valuable asset that you already own: It could be a piece of heirloom jewelry, a luxury watch, a real estate holding, or even a sports car or boat title.
Instead of relying on your credit score to evidence your ability to repay a loan, asset lenders look at the appraised value of the asset. Typically, you will be offered a loan as a percentage of the asset’s market value. For example, here at AMETA, we offer loans of up to 80% of an item’s value. That means that if you borrow against a $50,000 Rolex watch, you can get a loan for up to $40,000. And that is all without a single look at your credit report!
When you obtain an asset loan through AMETA Finance Group, here are some of the benefits you will experience:
- Competitive interest rates as low as 4%
- Loan-to-value (LTV) ratio between 60% and 80%
- Loan amounts up to $5 million
- Quick turnaround times
- No credit check or proof of income requirements
- Experienced, in-house appraisal process
- Concierge customer service to support you every step of the way
For those who have experienced bankruptcy, an asset loan can open up new possibilities. Just because your financial history is not spotless does not mean you should be denied the opportunity to get a loan if you have gone bankrupt and create new possibilities for yourself. Many people utilize asset loans in order to build their financial portfolios, investing in startups, acquiring new real estate holdings, or even capitalizing on the stock market. With an asset loan, doors will open for you.
Renew Your Financial Possibilities at AMETA Finance Group
Our trusted team at AMETA Finance Group is your go-to destination when you are ready to borrow against your valuable watches and jewelry. We are here when you need us, whenever you are ready to make a change in your financial story.
Get started today by filling out this short form.
FAQs About How to Get a Loan If You Have Gone Bankrupt
What is personal bankruptcy?
Personal bankruptcy is a legal process that involves declaring that you are unable to repay part or all of your debt. Declaring bankruptcy is a multi-step endeavor that will eliminate part or all of your debt, although there are also serious drawbacks. Some of the most severe consequences of personal bankruptcy include loss of property, severe reduction of your credit score, potential for remaining debt, and impact on loved ones or those around you.
Can you get a loan if you have gone bankrupt?
You can get a loan if you have gone bankrupt, but you may be faced with higher interest rates, lower loan caps, and reduced likelihood of approval. Bankruptcy often shows up on credit reports as a significant red flag for lenders, and getting a traditional personal loan after bankruptcy can be difficult. For this reason, many people who have bankruptcy on their credit reports will pursue alternative lending options, like asset loans.
How long does bankruptcy stay on your credit report?
How long bankruptcy stays on your credit report depends on the type of bankruptcy that you file for. Chapter 7 bankruptcy will stay on your credit report for up to 10 years. A Chapter 13 bankruptcy filing will stay on your credit report for up to 7 years. After that span of time, both will be removed. Even still, it is important to invest in rebuilding your credit in the meantime.
Can you borrow money after going bankrupt?
You can borrow money after declaring bankruptcy, but the barriers to entry will be significantly higher. Many borrowers who have experienced bankruptcy see lower loan amounts, higher interest rates, shorter terms, and a lower likelihood of loan approval. Waiting a couple of years after bankruptcy and working to improve your credit score will improve your likelihood of being approved for a traditional personal loan.
What does it mean to go bankrupt?
Bankruptcy is a legal proceeding that allows you to eliminate some debts that are causing “undue hardship.” There are different types of bankruptcy, including Chapter 7 (liquidation bankruptcy), Chapter 13 (reorganization), and Chapter 11 (usually filed by large businesses rather than individuals). Both will require legal processes to determine which debts can be alleviated and which cannot. After the legal portion of bankruptcy concludes, you will be “discharged” from the agreed-upon debts and creditors can no longer pursue collections.
How can you declare bankruptcy?
Bankruptcy laws generally differ by state, but you will begin by choosing what type of bankruptcy to declare: Chapter 7 bankruptcy or Chapter 13 bankruptcy. Chapter 7 bankruptcy involves liquidating all assets above a certain amount, excluding certain exempt possessions. Chapter 13 bankruptcy involves creating a plan for repaying your debts over three to five years.
What happens if you declare personal bankruptcy?
Once you declare personal bankruptcy, a series of events kicks off, beginning with a 341 meeting, at which you will testify under oath about your financial situation to your creditors. In many states, you will also need to complete a personal finance course. The state will determine what debts will be eliminated and which you will reaffirm, or continue to pay down. After the proceedings are complete, you will be discharged, or relieved of decided-upon debts.
Do you still have to pay off debt if you are bankrupt?
When you file for Chapter 7 bankruptcy, most of your debts will be eliminated, and creditors will no longer be able to pursue collections. However, there are some types of debt that cannot be alleviated through bankruptcy, including:
- Court-ordered child support or alimony
- Reaffirmed debt (that which you have agreed to continue paying despite bankruptcy, often a mortgage or car loan so that you can retain these assets)
- Government fines or penalties
- IRS tax liens
- Court fines or penalties
- Damages owed for personal injury caused while intoxicated
- Debt for certain condominiums or cooperative housing arrangements
- And select other categories.
How does bankruptcy affect your credit score?
Bankruptcy, whether Chapter 7 or Chapter 13 is always considered a very negative event on your credit score. How many points you will lose, however, depends on what your credit score was before. Some credit users may see a drop of over 200 points. This event can remain on your credit report for up to 10 years.
