While getting approved for a motorcycle loan when you have bad credit is a fairly easy process, trying to get financing with a bankruptcy on your credit is not. Acquiring a loan when you have filed bankruptcy is difficult because the requirements are much stricter.

The main issues that arise when examining the probability of a person being approved for a motorcycle loan whilst a bankruptcy adorns their record: what faze the bankruptcy is in, what time has to pass before the applicant can be considered and what factors will the applicant produce to raise his/her chances of being approved; can the applicant put money down or add a cosigner? Dealing with a bankruptcy when applying for a loan is a step-by-step process and the first step cannot be neglected. If it is, there’s no reason to continue trying to get the loan approved as it will be stopped from being processed.

Step 1- Discharge the Bankruptcy

This is step one because too many people attempt to get a loan approved as they are in the process of bankruptcy. Fact: No loan, whose applicant is currently going through a bankruptcy, can be approved without the expressed permission and regulation of the court. That said, even if the court approves, lenders will be weary as they are judging your current economic downfall.

As a result, you should have your bankruptcy discharged before ever applying for a motorcycle loan. Quite frankly, without a discharge there will be no loan approval that you can render on your own accord. The catch 22 is that, even with a discharge, lenders will still steer clear if the discharge is a recent one. There is a rule of thumb and a certain amount of time that must pass before you will be in the clear. The time span is reliant on the lender, the actual loan and the candidate’s credit score and history.

What’s your time span?

The next logical question is, how long must you wait before attempting to get financed after you’ve gotten your bankruptcy discharged? Neither the question nor the answer is simple because of all the many varying aspects. Here’s an example, if you have a co-signer your time span is different than if you apply without one. Just as, if your loan is unsecured the time span differs from the time span of a secured loan. That being said, prepare yourself by having the loan you want to apply for in mind as well as whether you can supply a co-signer for your loan.

On the other hand, there is one rule that applies to all bankruptcy applicants; wait a minimum of six months before applying for substantial financing of any sort, including lines of credit. However, small loan amounts should be able to be approved before the six month mark. That six month mark is from the time of the discharge not the filing. While you can attempt applying for larger amounts, but beware that you will more than likely be turned down.

The same for motorcycle loans

The six month rule stand for motorcycle loans as well. Although, these loans are typically secured loans waiting out the six month time span will make the search and the application process much easier. If you don’t want to wait, be prepared to put down a hefty down payment or provide a co-signer. The moral of this article is that the process is indeed a process and must be taken step-by-step for it to be successful.

By: Bill Gatton

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