It can happen that somebody has to file for bankruptcy at some point, so one would assume that such people would no longer get credit. However, this is not the case. Even in such a situation, you have the opportunity to get a loan.
Credit despite ongoing bankruptcy proceedings?
The types of bankruptcy can differ depending on what form you are in. Of course, it is not said here that it will be easy to get a loan, but it will not be impossible. An insolvent company, for example, can continue to run even after filing for bankruptcy. This is made possible by the fact that found investors are brought into the action. The crucial point here is whether you will find these urgently needed investors.
There are banks in Germany that also grant a loan to an insolvent person. You still want to give this person a chance to build a company or to prevent the financial situation from falling completely out of hand. Most of the time, these providers are unfortunately rather dubious, since they charge far too high interest rates.
The decisive factor when granting a loan is the creditworthiness, so that it is in the region of zero within an insolvent situation.
Find the right credit broker
In an insolvency procedure, loan intermediaries can be involved in the process because it could help them to get a loan despite the prevailing circumstances. If you are lucky, with the help of this intermediary, you will still find an investor who is willing to pay money.
This way, you are more likely to get something serious than if you tried it all yourself.
After a registered private bankruptcy, it is only possible to take out a loan again after two to three years. As soon as the past should be regulated, for example by an insolvency administrator, further steps can be initiated in directions that correspond to the ideas of the previously insolvent person.
A loan can also be paid back in installments using loan platforms. This could prevent you from getting into trouble with further payments. If one is involved in an insolvency proceeding, it will have to be determined in the Credit bureau. That is why it is good to bring a credit broker with you as a whole, since everything can be complicated enough. In this way, the chances of getting everything financially settled can be increased.
You can get a loan even during an insolvent situation. The prerequisite here is that you can also pay it back. This is one of the conditions that must be met in order not to fall back into a financially difficult situation.
Unfortunately, nowadays it can happen that as a consumer you are over-indebted and cannot pay these debts straight away. If you can no longer meet your repayment obligation, creditors can resort to so-called wage garnishment so that they can get their money.
Through this attachment of a wage, the debtor receives a negative Credit bureau entry at the same time. Furthermore, a garnishment of wages will also arrive negatively at an employer and will also be unpleasant for the employer, since this process can result in costs for the employer.
Can you get a loan, despite a garnishment and from where?
Sometimes indebted people try to get rid of their debts with a loan in one fell swoop, but they will not get this much-needed loan because they are not in a good position to take out a loan. Banks will most likely not get involved in such highly uncertain transactions.
Here it would be more advisable to go other ways to get rid of your debts. Such as creating a plan that deals exclusively with debt settlement. It can also be helpful to get professional help in this area if you feel that you can’t do it alone.
Repayment in installments is preferred
If you have a monthly income, you should rather look to see if you can use this money to complete the whole thing in small installments, even if it may mean a longer repayment term. If you are already in debt, then it is best not to try to put even more debt on top of it, because that would only make the whole thing more complicated and maybe you will sit there and have to pay back more than was the case before,
It is safe to say that if you are most likely or will be affected by a garnishment, it would be the wrong way to try to apply for a loan.
Talk to the creditors
The best thing to do is to think very carefully about how you can negotiate with the creditors so that everyone is more or less satisfied in the end. Sometimes it can take a while to come to a common denominator with the creditors, but in any case it is not impossible if you follow the whole thing with a certain seriousness and deal honestly from the start.
However, if you feel overwhelmed, you can of course go to advice centers that have specialized in such thematic areas, so that you can plan the next steps with a corresponding specialist office.