Bankruptcy loans are intended to assist those who have suffered a failure to recover from their financial situation and restore their credit. The process of rebuilding your credit when you have a bankruptcy on your record is neither easy nor quick, but a loan from the bankruptcy is a good first step.
A continuous and uninterrupted repayment of a loan from bankruptcy contributes to repair your credit. It shows solvent and possibly help you achieve a good credit rating and return to your ability to obtain financing at interest rates more reasonable.
The reverse is also true, if you are in your late payments or miss a payment, your credit score will eventually reach a point of no recovery, breaking your ability to obtain funding for many years to come.
