Getting A Loan After Going Bankrupt

In Nigeria, bankruptcy can be a confusing topic. Individuals face bankruptcy when they can’t meet their total debts, while companies become insolvent when they can’t pay their debts. But bankruptcy isn’t the end—it’s a chance for a fresh start. The Nigerian bankruptcy act of 2004 outlines the process for declaring bankruptcy.


Steps to Get a Loan After Bankruptcy:

  1. Check Your Credit Reports:
    • Regularly review your credit report for accuracy.
    • You can obtain a free credit report annually.
  2. Show Proof of Income:
    • When applying for a loan, demonstrate your current income sources.
    • This reassures lenders that you can repay the loan despite the bankruptcy. Include any additional income, like a side hustle.
  3. Share the Circumstances:
    • Explain the reasons behind your bankruptcy. Not all bankruptcies result from financial mismanagement. If unforeseen circumstances led to it, lenders may be more understanding.
  4. Compare Lenders:
    • Research and compare terms and conditions from different lenders.
    • Look for the best deals online. You might not qualify for the lowest rates, but you can find an option that suits your needs.

Improving Your Chances for a Loan:

  1. Rebuild Your Credit Score:
    • Focus on improving your credit score, even though bankruptcy remains on your report for some time.
    • Follow the 5Cs of credit for guidance.
  2. Maintain Timely Payments:
    • Avoid missing any monthly bill payments.
  3. Consider Secured Loans:
    • Secured loans, where you offer collateral, can be more favorable.
    • Ensure you pay off the loan balance every month.
  4. Keep a Low Credit Utilization:
    • Aim to use less than 40% of your total credit allowance.


Obtaining a loan after bankruptcy may be a bit challenging, and you might face higher interest rates. However, it’s essential to be cautious. Watch out for lenders claiming not to conduct credit checks, as this might lead to exorbitant interest rates. Remember, with time and responsible financial management, you can rebuild your financial standing

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