According to the latest report, 2007 was witness to a steep rise in the number of people having CCJs registered against them. Conservative estimate put the number at a rough 850,000. It seems that quite a lot of consumers see bankruptcy as the only way out.

2006 was a bumper year as far as bankruptcy numbers are concerned. More than a 100,000 people had declared themselves insolvent. Official figures show that 15,356 people bankrupted themselves and 11,299 agreed an IVA in Q1 2007. Many instant online credit information providers like Equifax is concerned that many consumers do not understand the implications of going bankrupt. There is a common misconception that bankruptcy is an easy way out of debt with no after effects.

Is personal loans is able to help us in this situation?

I would say if you're teetering on the edge of bankruptcy then you're not in a good position to be looking at personal loans. If you can't figure out a way to pay off the debts you have then taking on more seems foolhardy.

I would think it would be very hard to get a personal loan if you were that close to bankruptcy. That is, if you were honest on the application.

I agree. How would it be possible to get a personal loan if you are close to a bankruptcy.

It's actually not that hard. You could actually take out a larger loan with a longer repayment period, pay off the other debts and possibly pull yourself away from the edge. Then you only have to cover the one loan amount as opposed to several bills which may add up to more money.

My friend who was bankrupt found a very hard time trying to get even a small loan. It's quite difficult once your there as a lot of companies don't want to lend you money.

That's how it works. Though your friends might be a better risk than someone with marginal credit. Your friends can't file for bankruptcy again for quite a while...

I agree with the notion that a long term larger loan when on the brink of bankruptcy is a good attempt at saving your credit. For some odd reason most banks allow you to take a loan under these circumstances. Once you declare yourself bankrupt though it can take longer then 5 years to start building up your credit again and banks will in almost all cases refuse to deal with you.

i think it would be very hard to get personal loan,if you are very close to the bankruptcy.

I believe taking personal loans is not a good option given the circumstances you have mentioned. Rather it would take you to a debt trap where u will again required to take some kind of bridge loans to finance these personalloans( provided you get).

As far as I'm concerned, taking out a personal loan to try and fend off bankruptcy isn't the way to go. Why drive yourself further into debt?

Sometimes debt consolidation is the only way you can go though. If you can find a low enough interest rate, go for it. No point in getting killed by the rates of several other debts when you can find a low rate and just have to worry about interest on that alone. Lump them together and pay it down.

we have a group regarding your inquiry to solve your problem

i think you are not in a good position to be looking at personal loans.anyways you should concerned to ur bank they give you better advice.

Best Alternatives to Bankruptcy and IVA

Rajiv,

Be careful with bankruptcy it really is the final straw and has many implications which last for many years even though it may not show on a credit search.

Lenders can and do,do a separate bankruptcy search when raising certain finance. This search will show if you have ever been made bankrupt. Also being a bankrupt or ex-bankrupt can stop you getting certain jobs IE in finance a police officer judge MOT inspector etc. It will also stop you ever owning your own company or being a director of a company!

Also your affairs are made public and advertised in the local press at your cost! The administrator in charge will sell your assets including TV's and furniture of value to be replaced by cheaper/second hand furniture etc.

You will not be allowed to raise any finance for the time you are bankrupt and any monies you make during and even after the bankruptcy must be declared to the administrator. They can also take into account any monies you are due in the way of pensions and incomes from will and life insurance etc that may be due to be paid in the future. This will be reserved and taken from the funds to pay of the debts that are "written off"

The debts are never truly written off and you can be chased for them even after the bankruptcy has run its course.

If you are in trouble I suggest you speak to CAB or the CCS as they will be able to advice you on the correct course of action for your own circumstances.

I hope this helps and don't believe all you see in the press things arnt that easy

yeh

It really isn't that hard to get a loan at some places, even if you have declared bankruptcy.