Although a lot of the major banks will not issue bad credit personal loans after bankruptcy there are indeed a number of companies that have entered this market and are now actively supplying people with these loans on a regular basis.
You see these companies rely on the fact that no individual after filing bankruptcy can do so again until seven years have passed and sometimes even longer.
So these companies are willing to do business with these people simply because they have a legal way to recover their investment in the future should things go bottom-up.
Even though many of the larger boys in this industry are simply not interested in this market these other generally smaller companies are taking the market very seriously.
At the time of writing to my knowledge there are no laws in place to stop people from taking on these loans, even though people are required to go to counseling lessons they are not actually forced to follow-up on everything they are told.
This means that there should be nothing to stop someone from searching out financial support in the source of a loan once they have discharged their bankruptcy.
The fact that bankruptcy can cause people so many difficulties, let alone embarrassment sometimes, pushes them to some drastic measures in an effort to get back on their feet. In some cases picking up one of these loans could be perceived as a drastic measure.
Even with the new laws there are those who continue to pile on debt and file for bankruptcy every seven years or as soon as the law permits.
No Laws Govern Who Applies For Bad Credit Loans
There are a number of laws in place that govern who can give bad credit personal loans after bankruptcy as well as the amount of interest charged with these loans. However no such laws exist to govern who can apply for these loans.
Many folks take out these loans despite the well-known fact that they come with very high rates, even folks who have been through multiple bankruptcies in the past still very often take them out.
It is the norm for lenders in this industry not to require collateral for the loan. The truth of the matter is that because of the legal recourse available which can include Wade garnishment, even when the loan goes into default the lender stands to make a profit.
Normally a court will make sure that a repayment is granted for whatever the loan amounts to including any additional costs involved with the collection should it default.
Despite the high rates and possible risks if you are still interested in one of these loans it is highly recommended that you consult your lawyer as this is a very serious matter and not one to be taken lightly.