Here at Bankruptcy Auto Financing we specialize in getting people auto financing for recently discharged bankruptcy. A lot of people ask us "How long after bankruptcy discharge until I can apply for an auto loan?" The answer is right away. We have subprime lenders that work specifically with bad credit, past repossessions, and bankruptcy.
In order to finance a car after bankruptcy discharge there will be some requirements that you will need to meet. These include, but are not limited to: being at least 18 years of age, gross $1,500 a month, no repossessions within a year unless included in bankruptcy, at least one year with current employer, or two years of consistent employment.
Process of Bankruptcy Vehicle Financing
To begin the process of auto financing after bankruptcy you must first fill out our online application. After we have received your application we match it with the lending criteria provided by bankruptcy dealerships within our network. If you meet the minimum requirements of a lender then your application is sent to them for further processing. Once we have gotten word whether you have been approved we will call to set up an appointment for you with the dealer. This whole process usually takes one day on average unless done on a weekend or holiday.
Before Meeting with the Lender
Before you show up at your appointment there are some things that you should do. First thing to do is not set your expectations too high. Although buying a brand new car is appealing you must remember that you have just come out of bankruptcy, and might not have the money to make the payments. Buying a late model reliable car might be the better option.
Because you have a recent bankruptcy on your credit you are going to have higher interest rates and most likely will be required to put some sort of down payment on the car. The amount required will be determined by your dealer, but they typically like to see 10-20%. If you buy a cheaper used car your down payment will be lower, along with your interest rate, making the payments for affordable.
If you have recently been discharged and you’re ready to make your first big purchase with bankruptcy auto loans start today by filling out the application. You could be driving away in your new-to-you car in a few short days.
Remember we are not lawyers and cannot give legal advice. The situations discussed are only our experiences throughout the years and may vary with each customer.