You might think filing for Chapter 13 bankruptcy will stop you from taking out any loans for a while. But the process takes from three to five years. Meanwhile, life goes on. At some point, you might need a loan to buy a new house or car, or pay for an expensive medical procedure — something that cannot wait until you complete paying off your current debts.

Fortunately, it is possible to get approved for a new personal loan while in the midst of Chapter 13 bankruptcy, though it usually is trickier than normal. First, in Florida, you likely will have to get the bankruptcy trustee’s approval for a loan. While the trustee is typically understanding when you need to borrow money for a necessity like housing or a car, they will probably insist that you borrow modestly — think a used car instead of a new Corvette. But if you can show that you must take out the loan to continue making your monthly bankruptcy payments — e.g., you need a vehicle to get to work — the trustee will likely approve.

Borrowing money with a low credit score

Your credit score probably will present another challenge. Filing for bankruptcy will cause your score to take a big hit, and it lasts on your credit history for years. Most lenders require a credit score of at least 600, but if yours is currently below that, there are lenders out there who work with borrowers in your position. However, you will have to agree to a higher interest rate and other less favorable terms than the average borrower. The fact that you are working and earning an income should help, though.

Help getting the court’s approval

The process of getting the trustee’s approval is complicated and involves a lot of paperwork. Your bankruptcy attorney can help you handle this correctly so you can get the loan you need.