{"id":4699,"date":"2026-07-03T05:28:38","date_gmt":"2026-07-03T05:28:38","guid":{"rendered":"https:\/\/www.figuralloans.com\/blog\/?p=4699"},"modified":"2026-07-03T05:28:39","modified_gmt":"2026-07-03T05:28:39","slug":"how-to-get-bankruptcy-loans","status":"publish","type":"post","link":"https:\/\/www.figuralloans.com\/blog\/how-to-get-bankruptcy-loans\/","title":{"rendered":"How can a bankrupt get loans from UK Lenders?\u202f\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Bankruptcy is a process that borrowers use as a last resort when all means of repaying debts have been exhausted. Debts covered in bankruptcy are automatically written off, but excluded debts still need to be discharged. Some of them are paid off while you are bankrupt, while others are paused until the bankruptcy ends.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The following are the debts that you will continue to pay off while you are bankrupt:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Student loans\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Child support and maintenance payments\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Magistrate court fees\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Any payments that a court has ordered\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Debts you owe\u00a0as a result of\u00a0personal injury and\u00a0the\u00a0death of another person\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Secured debts such as mortgages\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Bankruptcy cannot write off secured debts&nbsp;as lenders can repossess your house to cover their money, but once your house is taken back&nbsp;after you become unable to make payments&nbsp;and it fails to recover the whole outstanding balance, the remaining debt will no longer be secured and can be wiped out after 12 months,&nbsp;when bankruptcy ends.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Can I take out a loan after bankruptcy?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Borrowing money during insolvency is not recommended. In fact, most lenders will never accept your application even for a paltry sum. Once you have declared bankruptcy, it is against the law to borrow more than \u00a3500 without informing your lender about your bankruptcy.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After 12 months&nbsp;from&nbsp;declaring bankruptcy, you will be released from it, but it will be recorded on your credit report, and it will continue to harm your credit score for at least six years. After declaring bankruptcy, it becomes all the harder to get approval for a loan, credit card, car&nbsp;finance&nbsp;and mortgage.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How soon&nbsp;money can&nbsp;be borrowed&nbsp;after&nbsp;insolvency?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When you are released from bankruptcy, usually 12 months after&nbsp;the date of filing,&nbsp;you will&nbsp;be able to&nbsp;free to apply&nbsp;for a new loan, but this period can be extended if you do not cooperate with the trustee.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Since bankruptcy will be recorded on your credit file,\u00a0you have\u00a0limited\u00a0options.\u00a0No lender will be able to approve large loans. In fact, there is no guarantee that you can get the nod for\u00a0<a href=\"https:\/\/www.figuralloans.com\/blog\/what-is-a-personal-loan-how-does-it-work\/\" title=\"\"><strong>quick personal loans online<\/strong>.<\/a>\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If somehow you manage to receive approval, they will charge&nbsp;a very high&nbsp;APR. Because small loans are discharged in one shot, they can be extremely expensive to pay off. Some lenders will require you to be free of bankruptcy for at least three years before&nbsp;lending to&nbsp;you.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to qualify for a loan as a bankrupt?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Before your bankruptcy discharges, the loan amount is limited to \u00a3500, but afterwards, there is no limit to how much you can borrow. Unfortunately, there are high chances of being refused because of&nbsp;a very high&nbsp;default risk. Your credit score must have fallen in the category of \u201cvery poor\u201d after all. There are some steps that you can take to ensure a slightly increased chance of getting approval.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cooperate fully\u00a0with your trustee when they are dealing with your assets to discharge your debts covered under bankruptcy.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You should check your credit score\u00a0maintained\u00a0by all credit reference agencies to know where you currently stand. Make sure that the discharged bankruptcy is updated on your credit report because the official receiver is not supposed to inform it to credit bureaus.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Steps to make a successful attempt at&nbsp;borrowing<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Since qualifying for a loan even after bankruptcy is challenging, you should try not to borrow money for some period. Take a break from borrowing because most lenders will refuse you if insolvency is recent. Try not to borrow money until it is near the period of being removed from your credit report.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Old inquiries and defaults do not&nbsp;greatly influence&nbsp;a lender\u2019s decision, but they certainly do not guarantee success.&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rebuild credit<\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In the interim, you should focus on improving your credit score. You cannot see a significant improvement in your score even after the bankruptcy is removed from your credit report.&nbsp;After three to four years, you should start making efforts to&nbsp;rebuild credit by taking out, for example, credit builder loans,&nbsp;paid down&nbsp;over a duration of six months.&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Borrow a small amount of money<\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Getting approval for a large amount of money is&nbsp;out of&nbsp;the question. Try borrowing a small amount of money. Credit unions might prove to be a better alternative than lenders, as they charge slightly lower interest rates. Be consistent with your payments to&nbsp;demonstrate&nbsp;commitment.&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Be honest with lenders<\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Be authentic about your financial circumstances. Do not hide any existing debt, nor overstate your income.&nbsp;If you are borrowing&nbsp;more than \u00a3500&nbsp;when you are bankrupt,&nbsp;disclose&nbsp;it to your lender.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the alternatives to borrowing&nbsp;money if you&nbsp;fail to&nbsp;borrow during bankruptcy?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you&nbsp;fail to&nbsp;access funding from credit unions or lenders, you should consider the following alternatives:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Savings<\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">You should try to save money. They are the most affordable <a href=\"https:\/\/www.figuralloans.com\/installment-loans\/12-month-loans.html\" title=\"\">alternative to 12 month loans<\/a>.\u00a0Even if you are to borrow a small loan, it is extremely challenging\u00a0to get it approved.\u00a0Savings should come in handy in such cases.\u00a0\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Government grants<\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If your savings have fallen short, you should&nbsp;explore government grants and schemes. They might help you cover&nbsp;small unexpected&nbsp;expenses if you are eligible.&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Guarantor loans<\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">You should apply for a loan with a guarantor&nbsp;whose credit score is good.&nbsp;The guarantor will be responsible&nbsp;to discharge&nbsp;the debt if you fail.&nbsp;Associating your credit profile with someone with a good credit rating can hurt their credit score, especially if you default, so&nbsp;most of&nbsp;times, people will hesitate to enter into an agreement with you.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The final word&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It is not a cinch to get loans from a lender when you are bankrupt.&nbsp;Before you are released from bankruptcy, you will have to inform your lender of your bankruptcy if you want to borrow more than \u00a3500. However, it does not insinuate that you can receive approval if the loan amount is lower.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After bankruptcy ends, you still need to&nbsp;demonstrate&nbsp;your credibility. Lenders might be able to approve small loans.&nbsp;Still,&nbsp;personal loans, secured loans, and other instalment loans are almost impossible to qualify for.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>FAQs<\/strong>&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Is it safe to apply for a loan after bankruptcy?\u00a0<\/h4>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\"><\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Borrowing money during and after bankruptcy can be extremely expensive. Only if it is ineluctable should you borrow money.&nbsp;Consider using other alternatives first, such as budgeting, loans, savings,&nbsp;etc.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">What types of loans are available to\u00a0insolvents?\u00a0<\/h4>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\"><\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">You can consider applying for payday loans,&nbsp;bad credit&nbsp;loans, guarantor&nbsp;loans&nbsp;and credit union loans, but they all come with&nbsp;very high&nbsp;interest rates, and approval is not guaranteed.&nbsp;&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Where can I get a loan\u00a0with\u00a0bankruptcy?\u00a0<\/h4>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\"><\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;You can apply for a bankruptcy loan from credit unions, direct&nbsp;lenders&nbsp;and specialist lenders.&nbsp;&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">What are the risks of borrowing after bankruptcy?\u00a0<\/h4>\n\n\n\n<ol start=\"4\" class=\"wp-block-list\"><\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">There is&nbsp;a high risk&nbsp;of falling into&nbsp;an ongoing cycle of debt&nbsp;as they charge exorbitant interest rates.&nbsp;&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">What happens to a guarantor\u2019s\u00a0debt?\u00a0<\/h4>\n\n\n\n<ol start=\"5\" class=\"wp-block-list\"><\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">If you are a guarantor&nbsp;for&nbsp;someone who&nbsp;defaults, the repayment liability&nbsp;will&nbsp;become part of&nbsp;your bankruptcy, which will stop the creditor from chasing you even after bankruptcy ends.&nbsp;If someone else is a guarantor for a loan that you have taken out, it will be included in your bankruptcy, but your creditor will continue to chase your guarantor.&nbsp;&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bankruptcy is a process that borrowers use as a last resort when all means of repaying debts have been exhausted. Debts covered in bankruptcy are automatically written off, but excluded debts still need to be discharged. Some of them are paid off while you are bankrupt, while others are paused &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.figuralloans.com\/blog\/how-to-get-bankruptcy-loans\/\" class=\"more-link business-booster-excerpt-btn\">Continue reading<span class=\"screen-reader-text\"> &#8220;How can a bankrupt get loans from UK Lenders?\u202f\u00a0&#8220;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":4700,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-4699","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/posts\/4699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/comments?post=4699"}],"version-history":[{"count":1,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/posts\/4699\/revisions"}],"predecessor-version":[{"id":4705,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/posts\/4699\/revisions\/4705"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/media\/4700"}],"wp:attachment":[{"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/media?parent=4699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/categories?post=4699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.figuralloans.com\/blog\/wp-json\/wp\/v2\/tags?post=4699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}