When should you apply for a loan after bankruptcyNews and Culture | Christina | September 28, 2012 at 6:00 am
Bankruptcy and insolvency are two confused words. The meanings of these words are confused because of their similarities. The meaning of the term bankruptcy is the inability to pay off debts owed by an individual. Thus, bankruptcy applies for an individual only. Insolvency is a term used to refer to the inability of a company or organization to pay off its debts to creditors. The main differences in meaning between the two words are that bankruptcy applies for individuals only whereas insolvency applies for companies and organizations. Sometimes bankruptcy can lead to denial when applying for a loan. So when are you supposed to apply for a loan after suffering bankruptcy. There are different times that you are supposed to apply for a loan after either bankruptcy or insolvency. In most countries the period you need to wait for at least two years after filing for bankruptcy. In addition to this, you need to present proof of funds when you are applying for a loan after filing for bankruptcy or insolvency. Using the definition given on whenare.co.uk proof of funds is a document presented by the loan borrower to show that they are able to pay for the loan they have applied for. In other times, you need to present proof that you are able to apply for employment and make money by to pay for the loan. This is an important requirement when you are applying for a loan after a bankruptcy or insolvency. If you are unable to provide either proof of funds or employment, you need to proof that you can pay for the loan without the assistance of a third party.