Loans to Bankrupt and Protested: How to Get a Loan

Loans to bankrupts and protesters are a form of financing that is in great demand by those who unfortunately had problems related to their entrepreneurial activity, eventually coming to be registered in the Register of Protests for problems related to the issuance of checks or to honor bills of exchange, reaching even to the failure of its business. What concrete possibilities are there for obtaining funding? In this analysis we will try to describe all the possible ways, but it is good to know that it is not very easy to get loans for bankrupt and protested without adequate guarantees, since credit institutions and financial companies need to reduce the risk of insolvency that occurs to the their eyes, and that turns out to be particularly high when you have negative financial information on your shoulders. The more the guarantees are solid, the more openings are opened so that a loan request for protested and failed can have a positive outcome, perhaps for a not too consistent amount.

What does it mean to have failed?

Loans to bankruptcies represent a particularly delicate type of loan to be implemented, due to the legal status that hangs over the head of the applicant: there are not many solutions proposed by the credit system to be able to have access to a capital who has been the subject of an insolvency procedure of bankruptcy, a situation in itself quite complicated to manage. But what does it mean to have failed? Legally speaking, what is the position of a bankrupt in the eyes of banks and finance companies? From the technical point of view, the status of bankrupt it becomes public when a declaration of bankruptcy arrives, which, once it is definitively transmitted by the court in charge of the trial, without being able any longer to be subjected to any claim or appeal, is in fact made public to any person who may be interested to this information, including banks and financial institutions.

At one time there was a real register or register of the bankrupt in which the names of the subjects appeared, subsequently repealed following the 2006 reform: with the reform in force the effects of the bankruptcy should cease with the closure of the same bankruptcy, however to the a practical act a subject continues to be failed in a series of databases from which it is also difficult to exit, and which inevitably entails a credit restriction exactly as for the protesters. Therefore, the persistence of negative information in the public sphere makes the granting of loans and loans to bankruptcy extremely problematic, unless solid guarantees are shown.

The Register of Protests

Another situation that actually involves the same problems of access to credit is to be registered in the Protest Register, a database held at the CAI (Interbank Central Alarm), where you can stay up to 5 years if you do not get the rehabilitation from the Court by paying first of all, as agreed, with the addition of default interest, registration and management fees to the registry, and finally a penalty equal to 10 percent of the amount due. We end up protested when we issue bank and postal checks in vain, or we do not honor the promissory notes issued: if during the long process leading to the register we do not change our position, the consequences for the registration include basic

  • Prohibition to issue checks for 6 months
  • Obligation to return the checks held
  • Prohibition to stipulate new agreements for the issue of checks with any bank
  • Administrative fines of between € 516.46 and € 12.394, € 97

in addition to all the difficulties in obtaining any type of financing.

Are there loans for bankruptcy?

Are there loans for bankruptcy?

Loans for bankruptcy understood as ad hoc solutions for those who have suffered bankruptcy proceedings do not exist, but like all loans for protesters and bad payers, when there are sufficient guarantees to be presented when submitting the application, it is possible to obtain a capital even in the presence of negative information at its own expense: this is the case, for example, of a pay slip or a social security check that allows the granting of a salary assignment, or an external guarantor of proven financial soundness that allows obtaining a loan also to workers autonomous. Let’s see in detail what these solutions entail.

The sale of the fifth

The sale of the fifth

Although it is not easy for a bankrupt to have a demonstrable fixed income, in the presence of a pension it is possible to try to request a salary assignment, the most practical and easy solution for protesters and those who in general had past financial problems, because the monthly repayment installment is deducted directly from the employer or pension institution and paid to the financial institution, an installment with a fixed amount that cannot exceed 20 per cent of the total received as a salary or pension, equal to exactly one fifth.

How much can I ask for with the sale of the fifth?

How much can I ask for with the sale of the fifth?

Generally the amount of capital that can be requested with a salary assignment depends on the following factors:

  • Amount of monthly net salary or monthly net pension
  • Amount of accrued TFR
  • Chronological age
  • Seniority in employment
  • Health state

Considering that an external guarantor or other guarantee is not required, these factors play a decisive role for the financial company, which will then be willing to provide a loan for a larger amount the higher the salary or pension, the accumulated severance pay, or the seniority. Obviously those who are protesters, bad payers or have failed have greater difficulty in obtaining a high capital, but the guarantee of the salary or social security check is sufficient to obtain the approval of a salary assignment maybe for a lower amount, and with the obligation to take out an insurance policy.

The requested documentation

To request a fifth assignment, the following documentation must be attached to the loan application:

  • Copy of identity document
  • Health card or tax code
  • Last paycheck (or last two) or pension slip
  • Cud model for workers or OBIS M for pensioners
  • Salary certificate for employees
  • Notice of transferability of the fifth for pensioners

Debt consolidation

Debt consolidation

Another financial instrument accessible to pensioners and employees through salary-backed loans is debt consolidation, which makes it possible to merge all the past loans in progress into a single installment with a longer amortization and at lower interest rates, having the possibility of get more liquidity.

For protesters and those who have had financial problems in general, the only way to obtain debt consolidation is through the sale of the fifth, not therefore through bulletins or bank Rid as a means of amortization, and it is not said that the financial one agrees to grant the financing so it is always best to inquire before submitting the application to avoid rejection.

Loan with bills of exchange

In the absence of the requisites necessary to request the assignment of the fifth, very often the only possible solution to obtain a form of loan for bankruptcy is to lose the traditional channels and rely instead on those financial companies that provide loans with bills of exchange. What is it? Let’s talk about funding generally intended for persons who for various reasons cannot obtain a normal personal loan from a bank, and therefore instead of the normal amortization installments payment is made precisely through bills of exchange, which are credit instruments such as “drafts” or “IOU”, which they must be signed and subsequently a stamp must be applied to make them legally valid: these sections allow the creditor to foreclose the debtor’s assets even in the event of failure to pay a single deadline.

How much can I get?

How much can I get?

With a loan or bill of exchange, if you prefer, the amounts disbursed generally vary between € 2,500 and € 50,000, and the repayment period varies from 12 months to 120 months: it must be said that the functioning of bills is different from the amortization installments of the normal personal loan, since the bills of exchange can be renewed, so before the expiry of the effect it is possible to postpone the payment date, just a simple agreement between the parties. The negative aspect is that on average the financing costs are much higher compared to normal loans, with particularly exorbitant interest rates, for which it is advisable to make a comparison between several estimates to assess their actual convenience, although very often this loan with bills is for failed and for the protesters the only possibility to obtain a capital with a good degree of certainty.

Get a loan with a guarantor

Not having personal guarantees to offer to banks or financial institutions to obtain a loan, the only opportunity for a loan to bankrupt and protested very often turns out to be the surety, or a loan with a third guarantor that acts as co-obligator to repay the capital and interest agreed. This guarantor in the event of failure to pay the installments by the principal applicant of the loan, he in fact intervenes to pay off the loan installments, as he is himself obliged as the holder of the loan. The conditions under which a loan with guarantor is accepted by a credit institution provide that this third figure has a certain and demonstrable income that can sustain the amortization of the debt, and that its creditworthiness is proven, that is, that they are not present negative information on previous loans in the databases consulted in the preliminary phase by the financial companies.

Other usable guarantees

The roads leading to the use of real guarantees are much more difficult for bankrupt and protested, that is real estate and movable assets as credit protection obtainable. These possible alternative guarantees are:

  • Pledged assets
  • Make cash
  • Mortgage on a property owned

The pledged assets such as can be jewels provide for the consideration in cash of the estimated asset, which is put up for auction by the bank in the event that it is not redeemed at the end of depreciation. On the other hand, cash income can be a registered rent or a small capital that generates a constant return and that for various reasons would not be convenient to release, and to get the go-ahead for the loan it is necessary to demonstrate during the preliminary investigation that it will remain the holder of the aforementioned annuity for the entire period necessary to repay the loan. Finally, there is the mortgage on a property, which is usually granted by a financial company only in the presence of a large capital, since it would be too complicated if not to make up for the good in the event of failure to pay the loan.

The possibilities of a small loan

The possibilities of a small loan

Several credit institutions offer the possibility of obtaining a small loan: as can be clearly seen from the name, we are talking about a very small amount of funding, generally between 500 euros and 5,000 euros, with different repayment methods provided according to the financing mechanism implemented from the single bank, even if in general we can say that very often the small loan has characteristics similar to those of rechargeable cards connected to the current account: difficult to say if it is possible to obtain a small loan from bankrupt or protested, it is necessary to inquire at the credit institution or rely on an expert consultant to find out if the payment is possible, and possibly with which company to apply for the loan.


As we have seen, there are no specific loan solutions for bankrupt and protested, and the opportunities are neither many nor easy to obtain. However, for those in need of urgent liquidity it is a practically obligatory attempt to request a loan, in spite of the restrictions on access to credit due to negative public information that hinders an easy disbursement, which in particular for those who have suffered a protest or a procedure of bankruptcy are very burdensome.

If you are not able to request a fifth assignment, the options that seem most easily passable are either a loan with a guarantor, as long as this guarantor is really solid and reliable in the eyes of the financial company, or in the most desperate cases try with a loan with bills, well aware that the financing conditions are not always very convenient, and the interest to be paid high. There are no easy solutions for obtaining loans as bankrupt, but in the case of extremely difficult situations we suggest contacting an expert consultant who can possibly indicate the most suitable opportunities for the individual case, and thus be able to obtain the liquidity necessary to resolve the own problems.