Are Bad Credit Loans In The US A Good Idea?
Many people are able to receive bad credit personal loans after bankruptcy, often as soon as 30 days following the discharge of the bankruptcy. Many companies have actually found a pretty good market offering these loans to their clients.
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.
Although most traditional lenders simply will not grant bad credit personal loans after bankruptcy there are numerous lenders that fight over the market.
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.
Once the bankrupt individual has discharged his bankruptcy he or she should be free to go after a bad credit personal loan when they feel the time is right.
Although bankruptcy records are open to the public, and their availability is often seen as an embarrassing punishment for ignoring past responsibility, the availability of bad credit personal loans after bankruptcy has many taking that route to get out from under a heavy debt load.
Even with the new laws there are those who continue to pile on debt and file for bankruptcy every seven years or as soon as the law permits.
The absence of a law against bad credit personal loans
At the time of writing there are not any laws in place to stop the individual from applying for these loans. There is however many laws to control those who offer the loans in the first place.
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.
Few, if any of the lenders offering bad credit personal loans after bankruptcy require any type of collateral for the money, even knowing there is a good chance the loan will go into default, the recourse available, including wage garnishment, make them a profitable business.
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.
As with anything bankruptcy related, if you are bankrupt you must consult a lawyer in regards to this subject and carefully convey all of your options before making any decisions. - 23212
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.
Although most traditional lenders simply will not grant bad credit personal loans after bankruptcy there are numerous lenders that fight over the market.
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.
Once the bankrupt individual has discharged his bankruptcy he or she should be free to go after a bad credit personal loan when they feel the time is right.
Although bankruptcy records are open to the public, and their availability is often seen as an embarrassing punishment for ignoring past responsibility, the availability of bad credit personal loans after bankruptcy has many taking that route to get out from under a heavy debt load.
Even with the new laws there are those who continue to pile on debt and file for bankruptcy every seven years or as soon as the law permits.
The absence of a law against bad credit personal loans
At the time of writing there are not any laws in place to stop the individual from applying for these loans. There is however many laws to control those who offer the loans in the first place.
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.
Few, if any of the lenders offering bad credit personal loans after bankruptcy require any type of collateral for the money, even knowing there is a good chance the loan will go into default, the recourse available, including wage garnishment, make them a profitable business.
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.
As with anything bankruptcy related, if you are bankrupt you must consult a lawyer in regards to this subject and carefully convey all of your options before making any decisions. - 23212
About the Author:
Bad Credit Personal Loans happen to be only one of many topics you can learn more on at the How To File Bankruptcy Archive.
posted by X - Men @ 7:53 AM
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