Bad Credit Personal Loans - A Good Idea?
Although a lot of the major banks will not issue bad credit personal loans after bankruptcy there are indeed a number of companies that have entered this market and are now actively supplying people with these loans on a regular basis.
You see these companies rely on the fact that no individual after filing bankruptcy can do so again until seven years have passed and sometimes even longer.
So these companies are willing to do business with these people simply because they have a legal way to recover their investment in the future should things go bottom-up.
Most of the large companies simply have no interest in getting involved in this market but these smaller companies are more than happy to profit from this market regardless.
At the time of writing to my knowledge there are no laws in place to stop people from taking on these loans, even though people are required to go to counseling lessons they are not actually forced to follow-up on everything they are told.
Following the discharge of the bankruptcy, individuals are free to seek bad credit personal loans after bankruptcy whenever they choose.
The fact that bankruptcy can cause people so many difficulties, let alone embarrassment sometimes, pushes them to some drastic measures in an effort to get back on their feet. In some cases picking up one of these loans could be perceived as a drastic measure.
Some people are maybe a little bit too desperate and find themselves repeatedly having to file a bankruptcy in a continuous seven-year cycle. I'm afraid the new bankruptcy law has not managed to put an end to this.
No laws to stop you from getting a bad credit loan
There are a number of laws in place that govern who can give bad credit personal loans after bankruptcy as well as the amount of interest charged with these loans. However no such laws exist to govern who can apply for these loans.
Many folks take out these loans despite the well-known fact that they come with very high rates, even folks who have been through multiple bankruptcies in the past still very often take them out.
Lenders who offer these loans are generally set to make a profit even if the loan goes into default because of the legal recourse they have available to them in this situation which can include wage garnishment. In fact it is normal when applying for these loans do not even need collateral!
When a person defaults on bad credit personal loans after bankruptcy a court-ordered repayment is typically granted for the amount of the loan and any costs associated with collecting the loan.
Despite the high rates and possible risks if you are still interested in one of these loans it is highly recommended that you consult your lawyer as this is a very serious matter and not one to be taken lightly. - 23218
You see these companies rely on the fact that no individual after filing bankruptcy can do so again until seven years have passed and sometimes even longer.
So these companies are willing to do business with these people simply because they have a legal way to recover their investment in the future should things go bottom-up.
Most of the large companies simply have no interest in getting involved in this market but these smaller companies are more than happy to profit from this market regardless.
At the time of writing to my knowledge there are no laws in place to stop people from taking on these loans, even though people are required to go to counseling lessons they are not actually forced to follow-up on everything they are told.
Following the discharge of the bankruptcy, individuals are free to seek bad credit personal loans after bankruptcy whenever they choose.
The fact that bankruptcy can cause people so many difficulties, let alone embarrassment sometimes, pushes them to some drastic measures in an effort to get back on their feet. In some cases picking up one of these loans could be perceived as a drastic measure.
Some people are maybe a little bit too desperate and find themselves repeatedly having to file a bankruptcy in a continuous seven-year cycle. I'm afraid the new bankruptcy law has not managed to put an end to this.
No laws to stop you from getting a bad credit loan
There are a number of laws in place that govern who can give bad credit personal loans after bankruptcy as well as the amount of interest charged with these loans. However no such laws exist to govern who can apply for these loans.
Many folks take out these loans despite the well-known fact that they come with very high rates, even folks who have been through multiple bankruptcies in the past still very often take them out.
Lenders who offer these loans are generally set to make a profit even if the loan goes into default because of the legal recourse they have available to them in this situation which can include wage garnishment. In fact it is normal when applying for these loans do not even need collateral!
When a person defaults on bad credit personal loans after bankruptcy a court-ordered repayment is typically granted for the amount of the loan and any costs associated with collecting the loan.
Despite the high rates and possible risks if you are still interested in one of these loans it is highly recommended that you consult your lawyer as this is a very serious matter and not one to be taken lightly. - 23218
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See this other After Bankruptcy Bad Credit Personal Loan post direct from this Bankruptcy Facts section of my web archive.
posted by X - Men @ 5:33 AM
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