When filing bankruptcy there are two forms of debt that are reviewed for discharge. There are secured and unsecured debts. Secured debts begin as a secured loan. The borrower pledges assets such as a home, vehicle or property as collateral. These assets then become a secured debt. If the borrower defaults on payments, the assets can be used as collateral and sold to pay off the due debt. An unsecured loan has no assets attached for collateral use. Unsecured debts are utility bills, cellular phone bills or credit card bills, etc. These bills can be discharged in bankruptcy such as in when filing chapter seven. Other debts such as those associated with alimony, child support, etc. cannot be discharged in bankruptcy.



For debts that cannot be discharged in a bankruptcy, another option is to speak with a debt consolidation representative. This is a helpful tool in consolidating your debts into a single monthly payment. You will be able to do so within your personal budget. Speaking to both a bankruptcy attorney as well as a representative from a debt consolidation firm can help you to make the best decision in becoming free from both secured and unsecured debt. Either method of debt relief is effective in removing credit harassment and removing or lowering interest rates. If you are unsure of which of your debts are secured or unsecured, a bankruptcy attorney can answer that question for you easily by a phone conversation or a free consultation.

No matter if you have bad credit and are considering bankruptcy or if you have previously filed bankruptcy, you can qualify for a personal loan. It often takes a matter of five short minutes to be approved and you have only a minimum amount of requirements to be able to do so.

The Five Bankruptcy Loan Qualifications

? Bankruptcy is discharged

? Weekly income is of the amount of $195.00 or more

? You have a valid Social security number

? You are a United States citizen

? You are payments are up to date on all of your current bills

These five requirements are basic and are most often currently met at the time of loan consideration. If you meet these requirements you should then consider if you are interested in applying for an unsecured or secured loan. If you are interested in the difference between the two, the description is as follows in the next paragraph.

Unsecured Loan

This is any monetary loan not secured against the borrowers personal assets.

Secured Loan

This is any monetary loan that a borrower pledges an asset (a car, property, etc.) as collateral for the loan.

The End Result Of Your Loan Choice

You can apply for such loans through online loan services or by visiting a local loan officer for an application evaluation. Loans are generally approved based on income levels and assets for a secured loan status. If the loan service feels secure in lending you the requested money then there is little reason to why you should be denied the loan. If you are considering a loan it is best to do some research to see where you can find the best offer with the lowest interest rate. This may not offer you a great APR immediately after your bankruptcy, but further down the road your interest rate offers will gradually become more appealing. Be sure to give yourself time to prepare for a bankruptcy loan. Making sure that a loan is being used for the right reasons and in turn is a step towards rebuilding credit post bankruptcy.