Let's look at this from the third person point of view.
If you are behind on your payments now and want to borrow money from me, I'm not going to lend it to you if you truly are "in debt" and behind on payments for your existing debt.
If you file bankruptcy, then I'm not going to lend you money either. However, once the bankruptcy proceedings are completed and debts are either satisfied, reduced or written off, feel free to give me a call and I will at least consider loaning you money. While there are many factors I will consider, the first one I look at is the type of bankruptcy you filed for. Chapter 7? Chapter 11 or Chapter 13? Depending on which chapter, filing bankruptcy again is not an option to you for a minimum of 2 years.
If I do agree to loan you money, I can guarantee you three things.
Basically, if you're filing bankruptcy then your credit is pretty well dinged up already. All a bankruptcy filing will do is put another dent in that bell. So if you can't get a loan with 3 dings, why would I give you a loan with a 4th ding caused by a bankruptcy filing?
1) I want physical collateral of at least the value of what I am lending you. No collateral, no loan. Period.
2) The interest rate I charge you for the borrowed money will be high.
3) If you're late with one payment, you are defaulted on the loan and your collateral is mine to do with as I please, with no recourse.
