If you or someone you know has ever gone through bankruptcy you know all too well how stressful it can be. No one ever intends on filing bankruptcy, but sometimes there is no other choice. If for example you or your spouse has ever lost a business, getting back on your feet may be quite impossible without first filing bankruptcy. As you probably already know, once you file bankruptcy it will be on your credit for at least 7 to 10 years. You may think that you cannot ever purchase another thing on credit for the next 7 to 10 years, however this is not a correct assumption. Auto financing after bankruptcy is possible.
As a matter of fact auto financing after bankruptcy is not only possible but is actually a good way to rebuild your credit. If you have filed a chapter 7 bankruptcy than all of your previous debts have been wiped clean and you are no longer responsible for paying them back. Chapter 13 bankruptcies however are ones in which you will have to set up a payment plan to repay some or all of your debtors. Many auto dealers see the chapter 7 bankruptcy as a better one in which to get a loan after. Many lenders realize that since your debt has been wiped clean you are actually a good candidate for a loan, so long as you have a steady income.
Many times after someone has filed bankruptcy they may be a bit shy of going back into debt. It is a sad but true fact that the only way to improve your FICA score in the world in which we live is to go into debt and show that you can make payments on time on a regular basis.
If you have the capability of coming up with the down payment for your new car loan then you will most certainly be approved for one. Even if you do not have a down payment you may very well be approved for auto financing.
Make sure if you are approved for auto financing after bankruptcy that you read the fine print on all paperwork because many times the interest rates can be astronomical. It is a good idea to shop around when looking for a car so that you can find the one that is best for you. Be careful to check out each auto loan before signing on the dotted line so that you do not find yourself in another financial mess. As long as you’re careful with your finances both now and in the future, you shouldn’t have any further problems once you have filed bankruptcy.
Kendall Ford of Meridian has a wide selection of cars and the best auto financing in Boise.
