
Getting a Personal Loan After Bankruptcy
Most people facing bankrutpcy – and there are a lot (according to the American Bankruptcy Institute close to 766,700 individuals and businesses filed for bankruptcy in 2017 alone) – fear that they’ll be unable to ever secure a personal loan because of the damage it can do to someone’s credit. There are ways to do it though, and we’ll outline them below.
Can You Get a Personal Loan After Bankrutpcy?
The process of bankruptcy can either restructure your debt or wipe it out altogether. But in that process, it also hurts your credit score by anywhere from 130 to 240 points and can stay on your credit report for up to 10 years. That damaged credit is the reason it can be hard to qualify for a personal loan or line of credit. That damaged credit doesn’t entirely disqualify you though.
Discharging debt can actually help your credit score by lowering your debt-to-income ratio. Filing a bankruptcy can also allow you the time to take steps to improve your credit by offering you a completely fresh start.
If you’re looking for a personal loan after bankruptcy, here are five steps you should take.
1. Order a credit report and monitor your credit score
You can order a comprehensive report from the major credit bureaus: TransUnion, Equifax, and Experian.
These reports will allow you to take a look at your financial history so you can make sure your accounts are all up to date.
You can also look at the following factors that affect your credit score:
- History of repayment
- Debt
- Length of credit history
- Credit mix
- New credit accounts
You can also monitor your credit score at sites such as Credit Karma
Understanding your credit history and score can be beneficial when you are presenting your application to a personal loan provider.
2. Speak with multiple lenders about your situation
There are a number of options available to you when it comes to borrowing, such as:
- Online lenders
- Peer-to-peer lenders
- Credit unions
- Traditional banks

RHM LAW LLP
Meet Our Los Angeles Bankruptcy Specialists
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M. Jonathan Hayes Senior Counsel
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Matt D. Resnik | Partner Partner
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Roksana D. Moradi-Brovia | Partner Partner
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Russell J. Stong III | Associate Attorney Senior Associate Attorney, Los Angeles Office
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W. Sloan Youkstetter | Associate Attorney Senior Associate Attorney, Los Angeles Office
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David M. Kritzer Senior Associate Attorney, Encino Office

Client Reviews
What Clients Say About Working With Us
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Matt and his team are the best!! They were thorough, extremely knowledgeable, wonderful to deal with, thoughtful, and really helped guide me through what was one of the toughest times in my life. I never felt judged or looked down on. They were efficient and really were lifesavers during this tough time. I can not recommend them highly enough!!!!- Rusty H.
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Where to begin? I had a vile evil credit union repo my car over a misunderstanding, they wouldn't work with me even when I offered full payment plus repo fees (this was my first repo!) so I didn't know what to do. I met with a few lawyers but when I met with Simon he broke things down and gave me my options. I needed a car - so I filed BK and included the car to get it back. The evil credit union fought and Simon GOT ME MY CAR BACK!!! His team is amazing!!!! Maria Donna etc!!! These are top-notch pros that'll have your back. I cannot recommend them highly enough. Sincerely they saved my life. LA with no car!? ARGH!!!!!! *THANX ALL!!!!- Tim C.
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I needed a bankruptcy attorney in Sherman Oaks and found Matt Resnik on Google. He has one of the best-reviewed bankruptcy law firms on Yelp so I decided to check it out his law firm for myself. I quickly found out that they are foreclosure specialists and they could help me with my issue. They made the process very easy for me and laid out my options for me. I cannot thank them enough for helping save my home. I would recommend them for anyone that is thinking about filing for bankruptcy or foreclosure on their home. They are the best bankruptcy law firm in Sherman Oaks.- Joseph R.
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Fantastic office! I want to thank Matt for taking his time with me and sincere in his assistance. He spent over an hour with me for free during our initial consult. I left knowing exactly what's needed. He not only saved my house but also got rid of all my debt. They are not your typical attorneys and their creativity really allowed me to do things that other attorneys never mentioned in previous consults. Affordable and Outstanding firm and thank you for all you have done! My family thanks you!- David K.
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I filed bankruptcy with this firm 3 years ago and found that they are professional, friendly, and compassionate. I also met with their loan modification department. Unfortunately, they were unable to help because of the type of loan that I have. I really appreciated that they did not lie, waste my time, or take my money in an attempt to modify a loan that was not doable. I've since used their firm for a couple of minor issues and found all of the attorneys to be knowledgeable and considerate. Attorneys Simon and Resnik are amazing!- Shannon J.
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Matt is the best bankruptcy attorney in Sherman Oaks. I consulted with Matt over a chapter 7 bankruptcy. I had issues with overwhelming credit card debt after Chase increased it's APR for no reason. It set off a chain of events that were really hurting me. He made me feel like I had options, all was not lost, and I could rebuild my credit after the 7. I had some concerns about a piece of property I was having issues with and Matt also turned out to be a real estate lawyer as well! I recommend this office to anyone who is unsure of their financial situation. It doesn't hurt to find out your options.- Max B.
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Thank you for your great work on behalf of Ms. Johnson. Without the support of pro bono attorneys we couldn't do all the work we need to do, and your firm in particular is outstanding.
- Skip K. -
This is to thank you for the exceptional work of you and your fine staff. In managing my bankruptcy and loan modification, a nearly five-year effort, your performance was stellar. I never felt alone or adrift, key concerns in those circumstances. The outcome was outstanding. As the dank blanket of economic uncertainty continues to depress the hopes of many of us, I keep your business cards and number available for others. Without hyperbole, I can attest that you are present a beacon. Thank you so much.- K.C.
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I worked with Matt and his team for about a year to get through the paperwork shuffle and my personal experience was nothing short of fantastic. Legal situations have a tendency to get hairy, but Matt and his staff conducted themselves with professionalism throughout the whole ordeal. To keep it short, let's just say he under-promised and over-delivered. Rarely would I ever say this about an attorney, but overall he was just a great guy. I would not hesitate to have him on my side of the courtroom again. World market is right across the street from his office and I even decided to get his staff a thank you / holiday gift card. World market has excellent craft beer BTW, try the Einstock White Ale. They also validate parking. That just shows this isn't a fake review.- Dean C.

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A Summary of Bankruptcy Law: Third Edition
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Summary of Chapter 13