Edited By: Bonnie Gringer
Filing for bankruptcy can be devastating to your financial future, especially if you need to take out a loan. While it will provide you with a fresh start, you will be limited on the things that you can do as far as your finances are concerned. If you have recently decided that filing for Chapter 7 bankruptcy is your only way out of debt but now require a short-term loan to help you get back on your feet, you may want to consider getting a car title loan.
Getting a loan after bankruptcy can be very difficult, especially if you are dealing with a bank or other major financial institution. If you are in the middle of your bankruptcy filing and need some extra cash for an unexpected emergency, there may be ways to get access to small loans that will help you out until you are able to get back on your feet.
When you need a small personal loan, most banks and other lending companies will not even attempt to let you apply if you have recently filed for bankruptcy. It can be very difficult to get your financial reputation back on track, but fortunately, it is not impossible to obtain loans after bankruptcy. It is very common for individuals to seek out a car loan after filing for bankruptcy; however, if you need one before your case is completed, getting a loan can sometimes be a little more difficult. The chapter of bankruptcy that you file can have an impact on whether or not you can get a car loan.
When you file for Chapter 7 bankruptcy, you allow all of your debt to be eliminated or discharged. This type of bankruptcy allows for a liquidation of assets with all of the proceeds distributed to your creditors. Chapter 13, however, reorganizes your debt into a convenient repayment system that can last from three to five years. With Chapter 7, you will be required to complete a Means Test to review your income and all of your assets. Once you pass the test, a meeting is set up with your creditors.
Car title lenders will often want you to receive a discharge once the meeting with your creditors has taken place before they will consider providing you with a loan. If the meeting has yet to be completed, you may not be eligible for a title loan at the time.
If you file for Chapter 13 bankruptcy, you will need to get permission from your trustee before you are able to apply for a loan with a car title lender. Your personal Chapter 13 plan is designed to help you get out of debt based on the current amount owed. So before you can incur another debt, your trustee will need to be informed. They may need to cap the interest rate or set a particular limit on the amount that you are able to borrow.
TitleMax® has been involved in the auto title loan industry for almost two decades. We have experienced representatives on staff who can help you learn more about the title loan process. We understand that getting involved with a title loan company can be a scary experience, especially if you are just getting out of a recent financial struggle. We want our customers to be assured that they can count on TitleMax® in their time of need and that we will work with you to make paying back your loan easy and hassle-free. To find out more about how TitleMax® has remained a respectable leader in the world of title loans, visit us online at TitleMax.com.
At TitleMax®, we will work with you to provide you with the best possible options for obtaining personal loans after bankruptcy. Unlike many other car title loan companies or pawn outlets, we charge a competitive interest rate that could help make it much easier for you to pay off your loan fast. To find out more about how we could help you get a personal title loan after bankruptcy, call, click, or visit one of our convenient locations today and speak with a knowledgeable representative for details on the title loan services we have available.