Bankruptcy is always a difficult step.

Bankruptcy is always a difficult step.

However, anyone who has managed to slip into bankruptcy after bankruptcy can expect to start a new life without debt after six more years of financially depriving them of their finances.

Debit interest rate of 4.83% – 15.49% (depending on creditworthiness) fixed for the entire term, effective annual interest rate: 4.90% up to a maximum of 15.99%, net loan amount: 1,000 – 100,000 euros, contract period: 12 – 120 months. Representative example: borrowing rate fixed at 7.98% for the entire period, effective annual interest rate: 8,29%, net loan amount: 10,000 euro, contract period: 72 months, monthly installment: 175,29 euro, total interest cost: 2620,68 euro, total repayment ( including all fees): 12.620,68 Euro.

Good behavior explained

Good behavior explained

During the good conduct phase, the legislator stipulates that not only all the money above the seizure allowance must be paid to the creditors or the insolvency administrator. He also states that no new debt may be made. So what about a loan despite insolvency? Can a loan be taken which works despite bankruptcy? And if so, how?

Why is a loan requested despite insolvency?

Why is a loan requested despite insolvency?

Actually, the legal regulations are very clearly defined and will be communicated to every private individual as well as to any company which is in bankruptcy proceedings, in detail: No new debts may be made. This also applies to a loan that is to be taken up and works despite insolvency. Therefore, there must be a very good reason for overriding this rule.

During the good conduct phase you are encouraged to do a regular job. For example, many consumers need a vehicle because their workplace can not be reached on foot or by public transport. Since there are no savings due to the bankruptcy, the vehicle must be financed with a loan.

Other stakeholders are already planning their future during the insolvency proceedings and the good conduct phase. Despite bankruptcy they do not want to wait six years to be able to start again. They want to take their fate and their future into their own hands faster. But who wants to invest in his own future, usually also needs money. And in the form of a loan, which works even if despite bankruptcy actually no credit may be taken.

How can a loan be taken despite insolvency?

How can a loan be taken despite insolvency?

The fact is that before the bankruptcy, the insolvency administrator should be informed about the transaction. He must give his consent so that the good behavior phase is not jeopardized. If the loan is taken despite insolvency without the consent, the whole process can fail and the debt will be present again.

When taking up the loan despite bankruptcy, it is usually necessary to resort to offers that come from private investors or come from abroad. Here, it is important to examine the offers very carefully, since the interest rates are usually very high and there are some black sheep in the industry, which like to take advantage of the distress of those affected.

On top of that, if possible, a guarantor or a second co-applicant should be present when receiving a loan so that the chance of a good loan offer is guaranteed. In spite of bankruptcy, it is very important to pay close attention to how you can act.