Bankruptcy has had a really bad reputation for years, but what if I told you bankruptcy isn't that bad? Yeah, I know it sounds crazy, but hear me out. As citizens of the United States we are entitled debt relief by ways of filing a bankruptcy, and there have been millions of citizens that have used it. So why does it seem to have such a bad rep?
Bankruptcy allows you to either discharge your debts, such as; a medical bill, car loans, mortgages, and credit card bills, or allows you to create a payment plan. When you discharge the debts you are no longer liable to pay back the creditors associated with the loans, and if you opt for a chapter 13 bankruptcy a payment plan is set up for a three to five year period that allows you to pay back only a percentage of your debts.
Establish Good Credit with Bankruptcy Car Loans
As most of you know bankruptcy will hurt your credit score, but if you have been faced with the decision to declare bankruptcy then chances are your credit score was already pretty low. Instead of continually struggling with debt, you can fix bad credit with bankruptcy because you are essentially wiping the slate clean, and are giving yourself a chance to start over.
By applying for new lines of credit, such as a new car loan after bankruptcy you have the chance to rebuild your credit from the ground up. If you make every payment on time and in full your payments will be reported to the credit bureaus, which means your will have good payment history on your credit report.
Once you have established good credit then you will be able to get more lines of credit like a credit card, which will also help boost your credit rating. Credit scores are based on a number of things such as payment history, type of loans (installment and revolving), and how long the lines of credit have been open. A bk auto loan is an installment loan while a credit card is a revolving loan. Having both of these on your credit will only help you, but only if you can afford the payments each month.
Apply for Bk Auto Financing Online
If you have filed for bankruptcy and are starting over with a clean slate we are able to help you. At BankruptcyAutoFinancing.com we help bankrupt people locate dealers that work with past bankruptcies. Our network of lenders also have experience working with open bankruptcy, and have the ability to grant auto financing during bankruptcy if you meet the requirements.
Remember we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.