#1. Decide How Much You Can Afford

It would be good to start by first deciding how much you can afford. It would be safe to arrive at an estimate of your ability to pay a mortgage that is equal to about 20% of your pretax income- taking into account, taxes and insurance, principal and interest.

#2. Be Hones In Your Dealings With Creditors

When you are in talks with your lenders about the necessary pre-approval, be honest and straight forward about your bankruptcy- and equally honest about how fast you have managed to rebuild good credit in a short space of time. This could help you get the ideal personal loans for people with bankruptcy.

#3. Know The Facts

Lenders will usually pre-approve you for a personal loan amounting to up to 28% of your pretax income, but this may make you feel that you are being stretched to make those payments.

For example, your annual pretax income is $50,000, your lender will approve a monthly mortgage payment of $1150 which is 28% of the income you make in a month, and you would have qualified for a $150, 000 loans. At the rate of 20% however, your monthly payments would be downsized to a more manageable $833, which would qualify you for buying a $120,000 home.

#4. Shop Around

Once you are aware of how much of a house that your lender feels you can afford, shop around for $20, 000 less than his estimate. This would then cushion you against being over-extended.

The bottom line is that you want to make the lowest payments on bankrupt loans, and for as little money upfront as you could possible manage.

Essentially, avoid loans after bankruptcy discharge. However if you need to get a personal loan after bankruptcy, shop around for the lowest rates possible