A problem with getting back on your feet after bankruptcy is that you’ll have a tarnished credit rating.

Even after your bankruptcy has been discharged, you may struggle to get a traditional loan due to the state of your credit record – and if you can get a loan at all, you’ll have to pay significantly more to borrow the funds because of your status as a “sub-prime” borrower.

Get a short-term asset-based loan

If you’ve been declared bankrupt or are in the process of recovering from bankruptcy, you can still get an asset-based loan with Lamna as easily as anyone else. You won’t be penalised in any way because of the bankruptcy.

With Lamna, it’s the value of an asset you use as collateral (such as jewellery, a valuable artwork or a vehicle in your name) that determines the loan we offer. The process is quick, efficient and totally confidential – and once you’ve repaid the loan, your asset will be returned to you in the same condition you left it.

Rehabilitation after bankruptcy

Rehabilitation is a legal process through which the insolvent party is relieved of the legal implications of bankruptcy. Rehabilitation occurs automatically after 10 years from the date of your sequestration, but you can apply for rehabilitation before this time period is up.

If you haven’t been charged criminally and you haven’t been sequestrated before, you can apply for rehabilitation within six months. However, if you have been convicted of fraud, you can apply for rehabilitation only from five years after the date of your conviction.

Once your application for rehabilitation is successful, the court will declare you free to trade and contract once more. From this point, you can start the process of rebuilding a good credit rating.

Rebuilding your credit rating

Although filing for bankruptcy can have a disastrous effect on your credit rating for up to ten years, you can gradually improve your rating by managing your finances properly, and by responsibly taking on credit.

The number one step to rehabilitating your credit score is to pay your bills on time, and avoid bank loans. Instead get a credit card. By using the card and paying the bill promptly each month, you will improve your reputation as a borrower.

Regularly request copies of your credit profile from credit reporting institutions so you can keep track of your rating.

Generally it’s best to avoid credit repair companies. Although they many promise a quick fix, the only way to truly repair your credit rating is by budgeting, putting money into savings, building up the limit on your credit card and paying your bills on time, every time.

For more information about using an asset to secure a short-term loan, contact us on 0330 341 1707 or simply complete and submit our online application form.