If you have to apply for bankruptcy, you are at a point where financially nothing works. The debts are so high that they cannot be repaid. An agreement to defer or waive the debt with the creditors has failed and the person concerned has no material assets that can protect them from bankruptcy.
Once you have decided on this step, you have to start all over again from a financial point of view. Especially in the six years of the behavior phase, you shouldn’t let yourself get into debt. Every cent that is above the exemption limit and is earned more must be paid to the creditors. New debts must not be made. And so a loan in bankruptcy is actually excluded and not recommended.
Why banks don’t agree to a loan in bankruptcy
Anyone who is in bankruptcy must not be in debt. A loan is debt and therefore not allowed for the debtor. Anyone who wants to try to get a loan despite everything will inevitably fail at Credit bureau. Every reputable bank starts a Credit bureau query before lending. Since the bankruptcy was recorded in the Credit bureau, the bank will definitely find out about it and will reject the loan application. However, if the borrowing cannot be avoided, you have to go completely different ways for a loan in bankruptcy.
This is how it works with a loan
A bankruptcy loan is only possible if you borrow it through another person. This means that you cannot act as a borrower yourself, but have this part done by a second person. You should be aware from the start that this person is also liable for the loan. If the repayment fails, the bank will approach the borrower and sometimes enforce its claims by attachment. The debt trap can threaten.
You should really think very carefully about whether the loan is necessary or whether it cannot be avoided. If it also emerges that the loan for the debtor has been taken out, the bankruptcy threatens to fail. He cannot get rid of his debts and has to pay them to his creditors.
Another way to get a little money during bankruptcy is through the family. Maybe there is someone here who can provide financial support to the person concerned and lend them the money they need. This means that no loan has to be taken out and there is no risk of bankruptcy.