When you are no longer able to pay your debts because you have fallen on hard times, you can file for bankruptcy to have a peace of mind from your creditors. While being declared bankrupt saves you from being harassed by creditors, it is not an entirely good thing for you.
For instance, when you are bankrupt, your non-essential assets such as jewelry, car and excess income are taken away to pay off your debts. Nevertheless, you are compelled to live on the bear minimum until after all your debts have been cleared. Additionally, your credit score takes a big blow, making it difficult for you to access many types of loans, except for unsecured loans.
Taking a personal loan in Singapore when you are bankrupt can be a good idea as making that move can benefit you massively during the period when you are down financially. Here is how:
Did you know that you can actually get declared bankrupt due to not being able to repay a debt as small as $5,000? Contrary to what many people think, you do not necessarily need to be unable to pay a six, seven or even more figure debt to be slapped with a bankruptcy status. That means that some bankruptcy statuses can be turned around by borrowing a personal loan to settle the debts.
As said before, one of the major repercussions of being declared bankrupt is poor credit score. With a poor credit score, you will not be able to access many types of loans offered by lenders in Singapore. You will be locked out of financial help opportunities you can grab to get out of your economic adversity.
But if you are clever enough, you can borrow a low interest personal loan Sg to clear your initial debts to get out of bankruptcy. Clearing your debts and getting out of bankruptcy, using the money you have borrowed will automatically improve your credit score, unlocking more loan opportunities.
As said before, when you are bankrupt, your non-essential assets as well as excess income are confiscated to settle your debts. As such, you are compelled to survive on the bare minimum. Even the projects you are undertaking are forced to stall. But if you are smart enough, you can take an unsecured loan in Singapore to continue funding your project regardless of your financial status. It goes without saying that most lenders offer personal loans up to $50, 000 and $100,000.
As you can see, a personal loan can be massively beneficial during a bankruptcy status. For instance, you can easily borrow a lowest interest personal loan to get out of bankruptcy, improve your credit score, or continue funding your project. With that in mind, it is safe to say that borrowing a personal loan when you are down financially is not a bad idea.
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