Bankruptcy and Loans

[Jodi1980]

I know someone that may be filing for bankruptcy. Would her and her husband be allowed to take out a bank loan after filing or will the interest just be higher?

 

[CEDmom]

If they have any kind of collateral that would allow them to take out a loan why aren't they doing that instead? I would avoid bankruptcy at all costs. Once they file no one is going to be too willing to give a loan.

 

[Jodi1980]

I guess they are in trouble - I do not know how much they owe.

I also know someone who filed seven years ago and it was a blessing for her as she was getting deeper and deeper into debt just from the interest compounding.

She has never applied for another credit card to this day and is living debt free.

 

[MagicalMom]

A co-worker of mine filed for bankruptcy & turned right around & bought a new car. She just moved into the new, large house she had built last week. Seems that bankruptcy didn't haunt her at all.

 

[Rock'n Robin]

DH just talked to a bankruptcy attorney yesterday due to his business failing. We tried and tried. According to the attorney bankruptcy is not that big a deal anymore and in this economy it is more and more common. I think your friend could get a loan, but I would think the rates may be higher for a couple of years.
Robin m.

 

[danacara]

Probably worthwhile to examine why a bank loan is needed so soon after a bankruptcy.

 

[mum4jenn]

what kind of loan would it be??? If it was for a home or car I would try to get it before filing for bankruptcy. Then the percentage rate would be lower. If they file after that as long as they "re-commit" for the item (house or car) they can keep those and still file. They would of course have to still make monthly payments on the loan amount but it might ease the burden of the other things. This is of course if it is for a needed item like a house or car.

 

[Jodi1980]

She mentioned that in about 6-7 years, they would probably have to get a car loan for their daughter.

 

[Nancy]

Isn't bankrupcy off your records in 7 yrs? I know too many people who have gone this route and then turn around and buy expensive houses and cars. Banks loan them money at a higher rate, but not that high.

 

[jennyanydots]

only debts that exist on the day the petition is filed are discharged in bankruptcy, so if the debotr incurs new debt while the bankruptcy is pending or after discharge, the new debt isn't part of the discharge.

credit card companies are delighted to give new cards right after a bankruptcy, because the debtor cannot declare bankruptcy again for a specified time period -- so they know that if the person is employed, they can garnish wages if they have to.


in bankruptcy, certain property may be exempt -- it can't be used to satisfy creditors. example, the debtor's house. if I'm not mistaken, the debtor could file for bankruptcy, preserve his house and obtain a discharge, then use the house as collateral for a bank loan.

 

[mudnuri]

She mentioned that in about 6-7 years, they would probably have to get a car loan for their daughter.

I would hope they will be teaching their daughter about credit and it's risks before signing a loan for her.

I know people who filed bankrupcy and then weeks/months later had new car loans, and credit cards..they might have just filed, but they showed no debt....

Brandy