As we get closer the ‘bankruptcy season’ the first and foremost thing to realize is that you are not alone in bankruptcy. Right now is in fact the most popular time for bankruptcy filings because after the BAPCPA was passed in 2005, the cost to file raised. Now tens of thousands of people wait until this time of year, just to file for bankruptcy.
Why is now the most popular time? Because eight years ago the cost of filing for bankruptcy changed, resulting in hundreds of dollars in added cost to the bankruptcy process. The result is that now many people wait until they receive their tax returns to begin the process of filing and start getting out from under their debt.
Bankruptcy Car Loans Can Help
Of course with much of their tax returns spent on filing for bankruptcy, many families in need of a car find themselves to cash strapped to afford one. This is where services like us here at BankruptcyAutoFinancing.com can help rebuild your credit and get you a car.
Your credit score is calculated through a long list of criteria, but the two main ones are revolving credit and installment credit. Financing a car is an example of installment credit because you are paying a fixed price for a fixed amount of time. By financing a vehicle after bankruptcy you are allowing yourself the opportunity to have timely payments reported to the credit bureaus, and help raise your score.
If you just filed, and have equity in a vehicle worth more than $1,500, chances are you will be required to surrender it to the bankruptcy. This means that your trustee is using your car to help repay your creditors. If this is the case, there is no need to worry. We also can help you obtain an auto financing during bankruptcy.
Getting Started with Car Financing After Bankruptcy
If you waited for your tax refund to come in before you filed for bankruptcy, and you’re worried about what will happen to your car, apply with us today. We can help you get into a new or used car loan that fits your budget.
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.