Can i get a bank loan after filing chapter 7?

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Fatima Bergstrom asked a question: Can i get a bank loan after filing chapter 7?
Asked By: Fatima Bergstrom
Date created: Sat, Dec 19, 2020 5:32 PM
Date updated: Wed, Sep 28, 2022 10:13 PM

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Video answer: How soon can you qualify for a mortgage after a chapter 7…

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Top best answers to the question «Can i get a bank loan after filing chapter 7»

Under each bankruptcy type, you can apply for a personal loan once your debt is discharged. However, it's easier for you to apply for loans after Chapter 7 bankruptcy because it takes less time to discharge your debt.

Video answer: How to get a business loan after chapter 7

How to get a business loan after chapter 7

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Going through a bankruptcy can be tough—and disheartening. Your credit can be impacted for seven to 10 years, making it difficult to get certain loans. 1  The good news, though, is that you can still get a personal loan after bankruptcy. It might not be easy, and you might have to pay a higher interest rate, but it is possible.

But if you need financing, you may still be able to get a personal loan after bankruptcy.

Can I get an SBA loan after chapter 7 bankruptcy? Yes, although it can be difficult. If you’re applying for a loan from the Small Business Administration (SBA) 10 years after declaring a chapter 7 bankruptcy, then it likely won’t have an impact on your application.

Chapter 7 bankruptcy discharges the filer’s personal obligation to pay the secured debt, but it doesn’t erase the lien against the property itself. Even if there’s no personal liability to pay back a car loan, the vehicle itself is still securing the loan. Generally, the only way to remove a lien against property is to pay the lien off.

After completing a Chapter 7 bankruptcy, your debts will be wiped so you won’t have any debt payments to make. This could free up enough money in your monthly budget to allow you to take out a small loan.

Be especially cautious if you owe your bank or credit union any money before filing for Chapter 7. Banking institutions have the right to take money out of your bank account to "set off" (pay) the debts you owe them. The debt might be for past-due fees, or for a loan, mortgage, or credit card.

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