How Soon Should I Buy a Car After Bankruptcy?

Some who file for a chapter 7 or chapter 13 bankruptcy find that they may lose their vehicles. If you can find alternative modes of transportation, you should wait until your credit begins to improve again. For others that need a car now, there are some options.

At Auto Credit Express we know that when you lose your car for whatever reason, it can make life pretty hectic. Losing it to bankruptcy is not only stressful, but can be embarrassing too. Read on to see what your options are in this situation.

When to Get a Car After Bankruptcy

As we said before, if you can wait – do so. The process of getting a vehicle after you’ve had bankruptcy is not always the easiest process. On top of that, you could be looking at higher rates since you would be deemed a high-risk buyer. For those of you that need a car now, there are options available for you.

The availability of your choices greatly depend on the type of bankruptcy that was filed.

  • For a Ch.7 bankruptcy, you may have to wait until the entire process of wiping your debt clear is completed. This is often because this bankruptcy process will only take a few months.
  • For a Ch.13 bankruptcy, you will need to have your account trustee’s approval after your 341 meeting before any dealer can help you. Most dealers will help you because they understand that this type of bankruptcy can last three to five years as you pay off your debt.

For either case though, you’ll have to at least wait until your 341 meeting has taken place. No dealer will be willing or able to help you until after that has taken place.

How to Get Financing for a Car After Bankruptcy

Earlier we mentioned that dealers and lenders will view you as a high-risk buyer based on your credit history and now bankruptcy. You’ll need to prove to them that you can handle a monthly payment.

Do this by showing you have a stable and constant source of income. It would also be beneficial to have either a good down payment or co-signer; maybe even both! Or if you watched our video for tips on auto loans after bankruptcy you know you should beware what type of car you get if you intend to refinance later

Before you go to any dealer though, make sure you’re going to one that will actually be able and willing to help you back on to your feet. At Auto Credit Express we can assist you with that. We work with dealers all across the nation that understand what you’re going through and how to help. Our simple online application is the first step to getting in touch with a dealer in your area. Apply today, we’re waiting to help you!

Posted on April 6, 2014 by in Auto Loans, Bankruptcy
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