What Are The Best Types of Credit Loans For People After Bankruptcy?

There are many types of credit loans, and while some require good to outstanding credit scores others may be possible shortly after bankruptcy. Personal loans may be an option if there is a co-signer available, but without a co-signer or collateral that is acceptable it may be difficult to qualify for most personal loans. Bad credit personal loan may be offered to individuals before two years have passed after the bankruptcy discharge but any lenders who accept this type of application will normally charge high interest rates. This type of loan may be an opportunity to rebuild credit, but for many consumers the interest rates are too high and there may be less expensive ways to get the needed funds instead. Personal credit loans may be difficult to get immediately after bankruptcy.

Car loans are one of the types of credit loans that may be a good choice after a bankruptcy. Some auto lenders will consider loan applications a short time after the bankruptcy has been discharged. This type of credit will normally have a higher rate charged, but they can help build up good credit again after bankruptcy. If the monthly payments are made on time and reported to each of the 3 major credit bureaus then a car loan can help improve the credit score and history, and build up good credit for the future. Applying to several lenders who specialize in bad credit and bankruptcy auto loans will allow the rate charged to be evaluated and compared, so that the best rate and loan possible is achieved.

Credit card loans can be found in different types. The two main types of credit card loans are secured and unsecured credit cards. After bankruptcy an unsecured loan can be expensive and extremely difficult to get without a co-signer. The best option for affordable interest rates is to choose a secured loan instead. A secured loan includes security that the loan will be paid. If the goal of the loan is to rebuild poor credit then a secured loan can be obtained by opening a security account with the funds available to cover the loan balance. In some cases it may also be possible to use property as security for this type of loan.

After bankruptcy loan choices may be extremely limited, and most will cost a significant amount because of the poor credit history and recent bankruptcy. A secured credit loan can be the solution for many individuals. These types of loans will involve a lower interest rate because of the security offered. Make sure that the lender reports the loan payments to the credit bureaus otherwise this type of loan may not help improve the credit score and history. Each person may declare bankruptcy for different reasons, and the best credit loan after discharge will depend on the individual. Some individuals may have access to security or a co-signer while others will not. For most people after bankruptcy a secured loan is the best choice. This type of loan can help save quite a bit of money on the interest rate charged.

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Important Ohio Bankruptcy Exemptions

Anyone thinking about filing for bankruptcy is bombarded by many questions of the unknown. What will happen to my credit? Will I ever get a loan again? Are my assets going to be seized? While all of these are commonly associated with misconceptions about bankruptcy, the good news is that your future after bankruptcy is brighter than before it.

What Is An Exemption

The purpose behind bankruptcy is to eliminate your debt troubles by satisfying debt obligations to creditors. However, there are many instances in which you simply cannot afford to repay what you owe. While some of your debts may be resolved through the sale of personal property, the bankruptcy process is not designed to leave you with nothing. Bankruptcy exemption laws were created to protect much of your essential assets and personal property. There are two types of exemptions, federal and state; each offering a different range of asset protection.

Ohio Exemptions

Each state offers a different level of asset exemption for the value of property. In 2009, the state of Ohio made some important changes to their exemption laws to accommodate for the inflated cost of living. Previously one of the state’s lacking much in the way of asset protection, Ohio’s laws now are one of the states with exemption laws stronger than the federal exemption protection.

One of the most important exemptions sought after is the homestead exemption, which can protect the equity in your home. This year, Ohio’s homestead exemption value increased to $132,900. Compared to the $22,975 offered under the federal exemption, Ohio residents now have a better footing for defending foreclosure in bankruptcy.

Personal property protection was increased to $12,250, matching the current federal exemption value. The motor vehicle value allowance also matches the federal exemption level at $3,675, which was brought up from $3,225 in 2009. Many more of the current Ohio exemptions match or slightly exceed the federal level, a huge leap from years prior where Ohio’s values were well below the federal level. These include items such as tools of the trade, cash allowance, and the wildcard item. As usual items such as retirement, veteran, Social Security, insurance or other benefits funds are untouchable in bankruptcy.

Using Exemptions

The specific nature of the bankruptcy process, including exemption laws, is one reason why it is encouraged to seek guidance from a bankruptcy attorney. Only a professional can help you ensure your road to debt relief is a smooth process with minimal impact on your property or hard earned assets.

Rick West has experienced first hand the crushing nature that deb

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