personal loans

Bankruptcy Attorney Advises Not to Borrow from Your Usual Bank

Bankruptcy Attorney Advises Not to Borrow from Your Usual Bank

A bankruptcy lawyer offers advice about the process of dealing with debts, saying that “one of my rules is I will never borrow money from the bank where I bank at.”

The TikTok video, put up on Dec. 29, comes from Adrienne Hines, a bankruptcy attorney with the Sandusky, Ohio-based Kademenos, Wisehart, Hines, Dolyk & Wright Co. LPA firm. The video went up on Hines’ the Lady Like Lawyer (@theladylikelawyer) account, drawing more than 717,200 views since landing on the platform.

She clarifies her position by saying, “I will never borrow money from an institution that has eyes on my actual deposits and my financial activity. Because if I ever default, and I know nobody ever plans to, but sh*t happens, and if you ever can’t pay that bill, the problem with your banking institution is they know everything about you.”

She goes on to explain that they know your deposit history, your average tax returns, and other information that might work against you. “And so when you have a problem financially,” she points out, “the creditors who come after you the quickest are the ones who know the most about you.”

She also says, “The other issue is setoff.

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My Bank Wouldn’t Offer Me a Loan After Bankruptcy, But a Credit Union Would

This column is the fourth in a series of articles that offer insights into personal experiences with the products and services that you read about on Investopedia every day.

When I needed a personal loan to help buy a used car, I went to my local bank, where I was a long-time customer. This was two years after my husband and I had filed for bankruptcy due to his business debt, and the bankruptcy had been discharged. So, I thought my best option would be to work with my local bank. When it turned me down, I was forced to look to other institutions. Thankfully, a credit union was willing to lend to us. 

2 Years After Bankruptcy, My Bank Wouldn’t Offer Me a Loan

A few years ago, my husband had to file for bankruptcy due to his business debt. I was devastated when our bankruptcy attorney told me I had to be included in the proceeding because I prided myself on managing our personal finances.

As soon as the bankruptcy was discharged, I set out to rebuild my credit as quickly as possible. This was a tough task given how long it takes to boost your credit

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