Start rebuilding your credit with a bankruptcy auto loan
Yes, there really is life after bankruptcy; and yes, people who have filed bankruptcy really can qualify for loans to buy cars. The plain facts are that bankruptcy negatively affects your credit score for up to ten years and during that time it’s both difficult and expensive to borrow money. The negative effect lessens over time, however, and no matter how recently you filed bankruptcy, it’s not necessarily impossible to borrow money.
Sometimes a bankruptcy hurts your self-esteem even more than it does your credit score. For many people fear of the unknown is the worst part of a bankruptcy aftermath. Instead of worrying about whether you can buy a car, why not take control of the situation? Find out today whether you can qualify for a bankruptcy auto loan by applying for a preapproval at Car Deal Expert. Chances are good that you can; but it not, at least you’ll know. Either way, rest assured that your online loan application is completely secure and confidential.
Bankruptcy auto loans may be easier to get than you think
After a bankruptcy, a car loan is one of the easiest kinds of credit you can obtain. In fact, making car-loan payments like clockwork is a great way to start repairing your credit score. Unlike most credit cards, charge accounts, and personal loans, car loans are secured. Because nonpayment of a car loan allows the lender to repossess the collateral, auto lenders have an added measure of confidence that their borrowers will pay. Auto lenders are, therefore, more willing than other kinds of lenders to loan money to people who have damaged credit scores.
To find out if you can qualify for a bankruptcy auto loan, apply today
If you’ve had a bankruptcy and you need to buy a car, you’ve come to the right place to find out whether you can qualify for a loan. At Car Deal Expert, we work with lenders who specialize in making all kinds of loans for compromised credit, including bankruptcy auto loans. Generally speaking, the longer it’s been since your bankruptcy case was concluded, the easier it will be for you to qualify for a bankruptcy auto loan or any other type of credit.
The only way to find out whether you can qualify for a bankruptcy auto loan is to apply for a preapproval. We can’t promise that everyone who has a bankruptcy filing on his or her credit history will qualify for a loan at Car Deal Expert, but we do promise that the minute you apply we’ll search our entire network for the best bankruptcy auto loan available, based on your individual circumstances.
If you’re thinking of buying a car before you file bankruptcy, get legal advice first
If you haven’t filed for bankruptcy yet, but you think you might, and if you’re considering buying a car before you file, consult with an attorney first. Making a purchase on credit shortly before you file for bankruptcy raises complicated legal issues, and only an attorney is qualified to advise you about what the consequences may be. If you don’t have an attorney, visit the Local Bankruptcy Attorneys website, where you can get bankruptcy-related questions answered for free by an experienced bankruptcy attorney in your area.
If you’re in bankruptcy now, proceed with caution
Sometimes getting an automobile loan can become an issue while your bankruptcy case is still pending. If you are currently in bankruptcy, you may have legitimate reasons for purchasing or refinancing an automobile, but in every instance, you need competent legal advice before you seek to do so.
Obtaining a loan before your bankruptcy case is closed can be very difficult. That said, there are some lenders who will work with a bankruptcy debtor to finance or refinance an automobile during the administration of a case. Like all bankruptcy auto loans, the interest rate on such a loan is likely to be higher than interest charged to people who have better credit scores and histories.
Chapter 7 debtors: Get legal advice before borrowing money
Redemption of a vehicle is one of the more common reasons why bankruptcy auto loans become relevant during the course of Chapter 7 bankruptcies. In a Chapter 7 bankruptcy, if you have a car subject to a loan and you have no equity in the car, (because your loan balance exceeds the value of the car), you may have the option to redeem the vehicle. To redeem the vehicle, you pay the secured creditor the value of the car in a lump sum by taking out a new loan secured by the car. The balance of your debt to the old creditor in excess of the value of the car is discharged, and you begin making payments on the new loan. You cannot do this without the approval of the court and the trustee, however, so don’t do anything without the advice of your attorney.
If, during a Chapter 7 bankruptcy, it becomes necessary for you to purchase a car, proceed cautiously and consult your attorney before you do anything else. If you are unable to make the payments on a vehicle that you purchase while your bankruptcy is pending, the lender can repossess the car. Unlike a debt that was incurred before you filed, not only will you lose the car, you’ll be responsible for any deficiency balance on the loan. In that event, you’ll have nowhere to turn, because the waiting period to file bankruptcy again can be as long as eight years.
Chapter 13 debtors: Don’t even think of borrowing money without legal advice
During the pendency of a Chapter 13 bankruptcy, you can sometimes obtain an auto loan (in a certain limited amount), but doing so requires the formal approval of the bankruptcy trustee. Competent legal advice is essential before you attempt to borrow money with a Chapter 13 bankruptcy case still open. Depending on what you have in mind, incurring a new debt may necessitate complicated legal proceedings to revise your entire Chapter 13 plan and to prove that you can afford both your new car payment and your Chapter 13 plan payment.
If you proceed without the advice and guidance of your attorney and without the approval of the trustee, taking on a new debt may cause your Chapter 13 plan to fail and your case may be dismissed. When that happens you’re back to square one with your debts and you may not be able to file bankruptcy again for an inconveniently long period of time.
People who’ve had bankruptcies still need cars
Although it may not be the most economical loan, a bankruptcy auto loan can play an invaluable role in rebuilding your credit. In many cases, obviously, a bankruptcy auto loan is also a practical necessity: People who’ve had bankruptcies still need cars. If your bankruptcy case is pending now, get legal advice before you do anything else. If your bankruptcy case is closed, and if you need to buy a car and are wondering whether it’s possible to qualify for a loan, apply for a preapproval at Car Deal Expert today. We’ll do everything we can to find the loan you need.