Loans despite bankruptcy – What does it mean

Unfortunately, today we live in a time when the courts have to deal with bankruptcy applications. This no longer only affects companies, but for some years now private individuals have also had the right to file for personal bankruptcy if they are over-indebted. This is often the last resort for those affected to pay off the debt once and for all. However, once you have applied for bankruptcy, you will generally not get a loan approved despite bankruptcy.

What does bankruptcy mean?

What does bankruptcy mean?

In the event of bankruptcy, the assets are realized by a third person, the insolvency administrator. It determines which creditor receives which amount from the attachable portion of the wages. The debtor is in a so-called good conduct phase for a period of currently six years. In plain language, this means that he cannot make new debts. But there are ways out, which would only come into play after consultation with the insolvency administrator.

P2P lending

P2P lending

Certainly many have heard of this term, but do not know what exactly is behind it. P2P means nothing more than loans from private to private. To make it easier, these loans are not made by a bank, but by private individuals who lend to private individuals. Although it is almost hopeless, the debtor can still ask for a loan despite bankruptcy.

This loan could be used to pay all debts in one fell swoop. That would certainly be helpful for the debtors. You yourself decide whether the investors agree to such a loan despite bankruptcy. Different guidelines apply here than with the banks.

Anyone who is looking for a loan here must justify their loan request briefly. Maybe there are some investors who want to help this person out of the misery. But as I said, that must be discussed with the insolvency administrator. But this will certainly have no objection if the loan is actually used for the repayment.

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