Can You Get a Personal Loan After Bankruptcy? What To Expect

Bankruptcy can give you a fresh financial start, but it doesn't permanently prevent you from borrowing. While it remains on your credit report for several years, you may still be able to qualify for a personal loan after bankruptcy.

Approval may be more difficult, as lenders will see your past challenges with debt. If you're rebuilding your finances, here's what to know about your options and how to improve your chances.

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Key Takeaways

• Bankruptcy doesn't disqualify you from getting a personal loan, but approval can be tougher since lenders see past repayment struggles.

• Chapter 7 stays on your credit report for up to 10 years, while Chapter 13 stays for up to seven years.

• Your loan options vary by situation and may include secured loans, co-signed loans or credit-builder loans.

• If you filed Chapter 13, you may need court approval before borrowing, and some lenders require a waiting period after discharge.

• To boost your approval odds, check your credit report, show proof of stable income, start with a smaller loan amount and compare multiple lenders.

• Rebuild credit along the way by paying bills on time and keeping balances low — and skip any lender promising guaranteed approval.

Summary generated by AI, verified by MoneyLion editors

How Does Bankruptcy Type Affect Loan Approval?

Your approval chances can vary depending on whether you filed Chapter 7 or Chapter 13 bankruptcy. Here’s a side-by-side comparison:

Chapter 7

• Chapter 7 erases unsecured debts, such as credit cards and medical debt, without a repayment plan.

• You may still have to liquidate some assets to pay creditors.

• Lenders may be more cautious about extending new credit shortly after a Chapter 7 filing.

• This type of bankruptcy stays on your credit report for up to 10 years, which can affect your credit score and overall creditworthiness during this time.

Chapter 13

• Chapter 13 bankruptcy allows you to keep your assets, but it doesn’t eliminate your debt immediately.

• It typically requires a court-supervised repayment plan lasting three to five years. During this time, you make structured payments to creditors based on your income and debts.

• Since it involves repaying a portion of what you owe, it could demonstrate that you’re taking steps to manage your debt responsibly.

• You may be able to get certain types of credit during the repayment plan with permission from the bankruptcy trustee or court.

• Chapter 13 bankruptcy stays on your credit report for up to seven years.

How To Get Financing After Bankruptcy

Here are some steps you may need to take to get financing after bankruptcy.

1. Consider the Type of Loan

Depending on the lender’s requirements and how much you want to borrow, several types of loans are available after bankruptcy.

• Secured loan: A loan backed by collateral, such as a home or car.

• Unsecured loan: A type of loan not backed by collateral.

• Cosigned loan: A loan with a co-signer, or someone with good credit and income who agrees to repay if the primary borrower does not.

• Credit-builder loan: An installment loan designed to help borrowers build credit.

2. Get the Court’s Permission, If Necessary 

If you filed a Chapter 13 bankruptcy, you may need approval before taking out a new loan. This is because Chapter 13 requires a court-supervised repayment plan, and taking on new debt could affect your ability to make those payments.

3. Wait for Discharge

Some lenders prefer that your bankruptcy be discharged before approving a loan, although the timelines vary by lender. Here are some examples:

• Fannie Mae requires a waiting period of four years from the discharge date for a Chapter 7 bankruptcy. For Chapter 13, the waiting period is two years from the discharge date or four years from the dismissal date.

• Personal loan requirements can vary by lender. In some cases, borrowers may qualify sooner if they have a stable income and have started rebuilding their credit.

4. Check Your Credit

Review your credit report to understand where you stand and identify areas for improvement.

5. Show Proof of Stable Income

Lenders want to see proof that you can afford to repay the loan. You may need to provide pay stubs, tax returns or bank statements.

6. Consider Applying With a Co-Signer

If your credit score is too low to qualify, consider using a co-signer. A co-signer is someone who will take responsibility for the loan if you are unable to make payments.

7. Start With a Smaller Loan

A smaller amount may improve your chances of approval because it involves less risk. Repaying a smaller loan can also help you build a positive repayment history and improve your credit score.

8. Compare Lenders

Requirements vary, so comparing options can help you find lenders with more flexible criteria.

Rebuilding Credit After Bankruptcy

If you’re taking out a loan to help rebuild your credit, here are some alternatives.

• Use a secured credit card: A secured credit card requires a refundable security deposit that serves as your credit limit. If you default, the card issuer uses your security deposit to cover the balance on your card.

• Consider a credit-builder loan: A credit-builder loan can help build credit by establishing a positive payment history. 

• Become an authorized user: An authorized user is someone who has permission from the primary cardholder to use their credit card account. This can help improve credit history.

• Pay bills on time: Timely payments can help you rebuild your credit score after bankruptcy. Payment history makes up 35% of your score. 

• Keep credit balances low: Maintaining low balances on credit accounts can help improve your credit utilization ratio and show responsible use of credit.

How To Avoid Loan Scams After Bankruptcy

Bankruptcy doesn’t prevent you from qualifying for a personal loan. Before you start applying, be aware of these potential scams:

• Avoid lenders promising guaranteed approval.

• Never pay upfront fees before receiving funds.

• Verify the lender's credentials and contact information.

• Don't send money via wire transfer or gift cards.

You can report suspected scams to the Federal Trade Commission (FTC).

Personal Loan After Bankruptcy FAQs

Still have questions about getting a personal loan after bankruptcy? Here are answers to some of the most common ones:

How soon after bankruptcy can I get a personal loan?

You may be able to get a personal loan after your bankruptcy is discharged. This typically takes three to six months after filing Chapter 7 bankruptcy, while Chapter 13 lasts three to five years before discharge. Some lenders may also require a waiting period after discharge and may look for signs that you’ve begun to rebuild your credit before approving the loan.

What is the easiest loan to get after bankruptcy?

The easiest loan to get after bankruptcy is typically a secured loan. This is because secured loans are backed by collateral, such as a mortgage on a house, reducing risk for the lender.

How long after bankruptcy can you get a bank loan?

How long after bankruptcy before bank loan approval depends on the lender, the type of loan and the type of bankruptcy you filed. Some borrowers may qualify for certain loans after their bankruptcy is discharged, while others may need to wait longer while rebuilding their credit.

Terms To Know

• Chapter 7 bankruptcy: Also called liquidation bankruptcy, this filing erases most unsecured debts like credit cards and medical bills, but may require selling certain assets to repay creditors.

• Chapter 13 bankruptcy: A filing that lets you keep your assets while repaying debts through a court-supervised plan lasting three to five years, after which remaining eligible debt may be discharged.

• Bankruptcy discharge: A court order that officially releases you from personal liability for certain debts, meaning you no longer have to pay those debts back.

• Secured loan: A loan backed by collateral such as a home or car. Because the lender takes on less risk, secured loans are often easier to qualify for after bankruptcy.

• Credit-builder loan: An installment loan designed to help borrowers build or rebuild credit by reporting on-time payments to the credit bureaus.

• Co-signer: Someone with good credit and stable income who agrees to repay your loan if you can't, which can help you qualify when your credit is low.

Sources

• United States Bankruptcy Court. 2026. "What is the difference between bankruptcy cases filed under chapters 7, 11, 12 and 13?"

• United States Courts. "Chapter 7 - Bankruptcy Basics."

• American Bankruptcy Institute. "Debt Incurred After Bankruptcy Filing."

• ConsumerAffairs. 2025. "Personal Loan After Bankruptcy: How It Works."

• Federal Trade Commission. "What to Know About Advance-Fee Loans."

• United States Courts. "Discharge in Bankruptcy."

• Fannie Mae. "B3-5.3-07, Significant Derogatory Credit Events — Waiting Periods and Re-establishing Credit (08/07/2019)."

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