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6 tips for getting a home equity loan after bankruptcy

by UNN Feed
Mortgage Belt
Borrowing money from your home equity can be tricky after bankruptcy, but there are ways you can boost your odds of getting approved for a loan.

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Filing for bankruptcy can be a challenging and overwhelming period in your financial journey. But while the bankruptcy process can be tough, and can result in serious financial hurdles, it’s also a relatively common option to choose. For example, annual bankruptcy filings totaled 452,990 in 2023, according to a report from the Administrative Office of the U.S. Courts — an increase of nearly 17% compared to 2022, when 387,721 bankruptcy cases were filed. 

Given the current challenges posed by today’s economic environment, the increase in bankruptcy filings year-over-year makes sense. For starters, persistent inflation issues have led to higher prices on consumer goods, causing budgets to be stretched thin. And, the current high-rate environment has led to hefty borrowing costs across the board, putting even more strain on many people’s finances. 

But if you’ve filed for bankruptcy recently — or are planning to — it’s important to understand that bankruptcy does not have to be a dead end. In fact, it can be a starting point for rebuilding your financial health, and if you’re a homeowner, obtaining a home equity loan may be a crucial step in that process. That said, it won’t be an easy path to securing a home equity loan after bankruptcy, but the below tips can help.

Compare your home equity loan options online here.

6 tips for getting a home equity loan after bankruptcy

Getting a home equity loan after a bankruptcy can be difficult but there are ways you can improve your chances of approval. Specifically, borrowers will want to:

Understand the timing

Bankruptcy can stay on your credit report for anywhere from seven to 10 years, depending on the type of bankruptcy filed. While this…

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