How Do You Get a Post-Bankruptcy Loan?


Quick Answer

Getting a loan after filing for bankruptcy is dependent upon the type of loan and the type of bankruptcy filed. Individuals are generally able to get a car loan right away, however, there are high interest rates attached, according to Nolo. There are minimum wait periods for home loans.

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Full Answer

An FHA-insured mortgage may be qualified for by an individual who filed a Chapter 13 bankruptcy in as little as one year and two years if a Chapter 7 bankruptcy was filed, according to Nolo. For a conventional mortgage, the wait period is two years after Chapter 13 and four years after Chapter 7 if the lender sells its loans to Fannie Mae. If the lender does not sell its loans, the waiting period could be longer. These are the minimum wait periods, it may take longer and there are other qualifications needed such as debt load, income, amount of down payment and so forth.

For credit cards, individuals can qualify for a secured card right away and then qualify for an unsecured card after about six months to a year of making on-time payments to the secured card ,according to Bankrate. However, these cards are likely to have APRs from the high teens to the 20s. Within 24 months, an individual can qualify for an unsecured credit card with a reasonable APR if he has been making payments regularly on his debts.

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