How to Get a Personal Loan After Bankruptcy: Lenders That Work With Chapter 7 and 13

Personal loans let you borrow a lump sum of cash to meet financial needs or goals. You might consider getting a personal loan after bankruptcy if you’re hoping to rebuild your credit history. Making on-time payments can work in your favor for credit score calculations. 

Qualifying for a personal loan can depend on your credit and how much time has passed since your filing. Some lenders extend loans to borrowers post-bankruptcy, but you may need to do research to find the right one. 

We’ll walk you through how to get a personal loan after bankruptcy and what to know before you borrow.  

Table of Contents

1. Can you get a personal loan after bankruptcy?
   1. How long after bankruptcy can you get a personal loan?
   2. After Chapter 7 discharge?
   3. After Chapter 13 discharge?
2. Which lenders offer personal loans after bankruptcy?
   1. After Chapter 7
   2. After Chapter 13
3. How to get a personal loan after bankruptcy discharge
   1. Boost your chances
4. Alternative post-bankruptcy funding
5. FAQ 

Can you get a personal loan after bankruptcy?

Yes, you can get a personal loan after bankruptcy, though approval depends on your credit, income, and how much time has passed since your case closed. Bankruptcy creates a major setback for your credit, but it doesn’t prevent you from borrowing again once certain conditions are met.

How long after bankruptcy can you get a personal loan?

You usually can’t apply for a personal loan until your bankruptcy is discharged. A discharge is the court’s final order that closes your case and releases you from the obligation to repay debts included in the filing.

• Chapter 7 bankruptcy is the most common type. It eliminates most unsecured debts, such as credit cards and medical bills, and is typically discharged within three to six months of filing. You may be eligible to apply soon after, but it will remain on your credit report for up to 10 years from the filing date, which can affect your loan options.
• Chapter 13 bankruptcy restructures your debts into a court-approved repayment plan lasting three to five years. It’s discharged only after the plan is complete and stays on your credit report for up to seven years from the filing date, often dropping off a couple of years after your plan ends.

So while discharge determines when you can apply, the reporting period influences how lenders judge your application. Here’s a quick comparison of how the two types of bankruptcy differ.

Chapter 7	Chapter 13
Discharge in about 3–6 months	Discharge after 3–5 year repayment plan
Eliminates most unsecured debts	Restructures debts into affordable payments
May require giving up certain assets	Lets you keep assets while repaying debt
Remains on credit report up to 10 years	Remains on credit report up to 7 years
Loan options may be available sooner but limited at first	Loan options delayed, but successful completion may improve approval odds

Can you get personal loans after Chapter 7 discharge?

Yes, though options may be limited early on. Chapter 7 clears out most unsecured debts, but because it’s a full debt wipeout, lenders often see recent filers as higher risk. That can mean smaller loan amounts, higher interest rates, or a requirement to use collateral.

You may have better luck with:

• Secured loans, which require an asset such as a car or savings account as collateral.
• Higher-rate or lower-limit loans, until you rebuild more of your credit history.

As time passes and you show consistent on-time payments, your options for larger unsecured loans at better rates improve.

Can you get personal loans after Chapter 13 discharge?

Yes, but usually not until your repayment plan is complete and the court issues a discharge. Chapter 13 lets you keep your assets while making structured payments for three to five years.

In rare cases, you may be able to borrow during the Chapter 13 bankruptcy payment plan with trustee or court approval, but most people wait until discharge. Successfully completing the plan can actually help your approval odds, since it shows a track record of repayment that some lenders view as a positive.

Chapter 7 and 13 bankruptcy affect your credit the same, but sometimes, a lender will favor one over the other. It depends on the lender. I suggest budgeting wisely, keeping your credit utilization low (below 30%), and making on-time payments on all debts.

Which lenders offer personal loans after bankruptcy?

Finding a lender willing to offer a personal loan after bankruptcy can be challenging, but it’s not impossible. Several lenders have lower minimum credit score requirements—or no minimum at all—which makes them more accessible to borrowers rebuilding after bankruptcy.

Remember: You must wait until your case is discharged, since most lenders won’t consider applicants with an active bankruptcy. Here are five options worth considering:

Personal loan lenders that work with Chapter 7

Borrowers fresh out of Chapter 7 often face the toughest road, since this type of bankruptcy wipes out unsecured debts in a short window. Lenders may worry about risk, so flexibility is key.

• OneMain Financial is often a starting point. It has no minimum credit score requirement and considers applicants with damaged credit histories. However, its APRs run high, and loans may be smaller, making it best for borrowers who need quick access and can handle collateral requirements.
• Avant is another lender with no set minimum score. It offers slightly larger loan amounts than OneMain, making it a good option if you need more than a few thousand dollars. Expect higher interest rates until your credit improves.
• Upstart stands out because it uses more than just credit scores to evaluate applications, looking at factors like education and employment. With a minimum score of 300, it may give Chapter 7 filers a better chance of approval than traditional lenders.

For most Chapter 7 borrowers, rebuilding credit first—then applying for one of these lender—can lead to better rates and higher chances of approval.

Personal loan lenders that work with Chapter 13

Completing a Chapter 13 repayment plan can work in your favor with certain lenders, since it shows a track record of consistent payments. Once your plan is discharged, some lenders may be more open to working with you.

• LendingClub sets a minimum credit score of 600, which may suit borrowers who’ve improved their credit during or after their repayment plan. It also allows joint applications, which can help if a co-borrower has stronger credit.
• Upgrade offers loans to borrowers with scores starting at 580. Its platform is fully online and emphasizes fast funding, making it a practical choice for those who qualify once their Chapter 13 is behind them.
• Upstart again can be an option here, especially if your score is on the lower side. The combination of alternative underwriting and a wide loan range ($1,000 to $75,000) gives discharged Chapter 13 borrowers some flexibility.

Borrowers who successfully complete a Chapter 13 plan may find lenders more willing to consider them than recent Chapter 7 filers, but rates and loan sizes will still depend heavily on how much credit rebuilding they’ve done since discharge.

How to get a personal loan after bankruptcy discharge

Applying for a personal loan after bankruptcy may require a little more research because you’ll need to find the right lender. Checking your credit scores can give you a starting point for choosing where to apply. 

Here’s a step-by-step guide to applying for personal loans after a bankruptcy filing. 

1. Compare credit score requirements. Many personal loan lenders disclose their minimum credit score requirements online. You can screen lenders in or out of your search based on where your score aligns with the minimum required. 
2. Review other requirements. If you have a short list of lenders you’re considering, take a look at the other qualification requirements you’ll need to meet. Lenders can consider your income, employment, and other debts, as well as the status of your bankruptcy filing for approval. 
3. Gather your documents. Lenders may expect you to have certain documents ready to apply for a personal loan. They can include proof of identity, pay stubs, tax forms, and bank statements. You’ll also need to provide proof that your bankruptcy case has been discharged. 
4. Complete the application. If you’ve organized your documents, you can move on to the application stage. Here, you’ll fill out the lender’s application and attach any required supporting documents. Depending on the lender, you may get an instant approval decision.
5. Be prepared to explain. Your lender may ask for details about your bankruptcy filing, including when you filed and when the case was discharged. The bankruptcy will be on your credit anyway, so if your lender asks questions, just answer honestly and accurately. 

If you’re approved, you’ll need to sign off on the loan paperwork. You’ll also need to share your bank account information so the lender can deposit the loan funds. Depending on your choice of your lender, you may be able to get the funds as soon as the next business day.

How to boost your chances of getting a post-bankruptcy personal loan

Getting a personal loan after bankruptcy may be a waiting game if your credit score is below lenders’ minimum requirements. However, you can take these actions to increase your odds of approval. 

• Get a cosigner or co-borrower. Applying for a personal loan with a cosigner or co-borrower can make it easier to get approved if they have a strong credit history. You may also be able to get a lower interest rate. Keep in mind that the cosigner is equally liable for the debt, so their credit could suffer if you pay late or default. 
• Get credit for paying other bills. If you’re paying rent, utility bills, or cellphone bills, you may be able to get those payments added to your credit history. You can use a service such as Experian Boost to include those payments in your credit reports, which may help add points to your score. Even a small credit score increase could make it easier to get approved for a personal loan. 
• Try a secured loan. If you have something of value you could offer as collateral, a secured loan might be your best bet after bankruptcy. Just remember that if you fail to pay off the loan, the lender can keep your collateral. 

Alternatives to personal loans for people with bankruptcies

If you can’t get a personal loan after bankruptcy, you may have other options for borrowing. Each of these can have pros and cons. 

• Credit builder loans. Credit builder loans aren’t loans in the true sense; when you borrow, you don’t get access to the money right away. Instead, funds sit in a deposit account that earns interest. You make payments to the lender, and once the “debt” is satisfied, the lender turns over the loan funds and interest earned to you. Good credit isn’t a requirement for approval, but you may pay higher fees to borrow. 
• Secured credit cards. Secured credit cards often require a cash deposit to open, which may be a few hundred dollars. Opening this type of credit card and making on-time payments can help you reestablish your credit history after bankruptcy. And you may be able to convert to an unsecured card and get your deposit back after a few months. 
• Peer-to-peer lenders. Peer-to-peer lending platforms connect borrowers with people who have money to lend. It’s possible to get approved for P2P loans after bankruptcy, even with a low credit score. You may pay higher interest rates or fees to borrow. 
• Friends and family. Friends and family may be willing to lend money to you after bankruptcy. Getting a loan from people you know won’t help you build credit, but it likely won’t require a credit check either. Just be sure you can repay what you borrow to avoid bad blood. 

FAQ 

Are there any restrictions on how I can use a personal loan after bankruptcy?

Generally, personal loans have no restrictions on how they can be used. Whether it’s for consolidating debts, paying medical bills, or home improvements, you have discretion. The key is to ensure you can repay the loan on time, and use it wisely to avoid a repeating cycle of debt.

Can you get cash loans after bankruptcy?

Yes, you may be able to get a cash loan after bankruptcy, but it typically depends on whether your case has been discharged and what your credit profile looks like. You might feel tempted by payday-style lenders may offer quick cash options, but we don’t recommend these loans.

Safer choices include the personal loan options above, or a secured personal loan from banks or credit unions, where you use collateral to qualify, or smaller online personal loans with clear repayment terms.

Are there online loans for people with bankruptcies?

Some online lenders specialize in working with borrowers who have bankruptcies on their record. Companies like Upstart and Avant, for example, have flexible credit requirements and allow you to apply fully online. However, no lender will approve a loan if you have an active bankruptcy that hasn’t been discharged.

As with any online loan, compare interest rates, fees, and customer reviews before applying to make sure the loan helps rather than hurts your financial recovery.

What are the risks of bad credit bankruptcy loans?

Bad credit bankruptcy loans often come with high interest rates, steep fees, and limited loan amounts. Because lenders view borrowers with bankruptcy and poor credit as higher risk, these loans can quickly become expensive and may trap you in another cycle of debt if you’re unable to keep up with payments. In some cases, lenders may also require collateral, putting your car or savings at risk if you default.

For many borrowers, it’s worth exploring safer alternatives—like secured credit cards, credit builder loans, or waiting until your credit improves—before taking on a high-cost loan.