Over the years bankruptcy has become a reality for many people in North Dakota and they are always left asking one question, “Should I reaffirm my car loan or apply for a new one after discharge?” Unfortunately, there is no clear cut answer as there are many determining factors that pertain to each individual situation.

Understanding When you Should Reaffirm

First you should look at the value of your current car and whether or not you are upside-down on the loan. Basically, if you owe more for the loan than what the car is worth, it may be worth discharging the debt and applying for a car loan after bankruptcy. You should also determine just how reliable the vehicle is. If you believe it could last you long enough to pay the car off and then a few extra years then it may be worth it to reaffirm the debt.

Remember though, a reaffirmation agreement is a legally enforceable contract that allows to lender to go after the debtor should he/she miss any payments. You are responsible for continuing the payments, and paying for any repairs. Luckily, doing so will help build your credit score back up while you are still in the bk process.

North Dakota Bankruptcy Auto Loans

If your current vehicle seems to be costing your more than you can handle – or just isn’t as reliable as you need – you can obtain a bankruptcy auto loan from one of our North Dakota lenders. Our lenders specialize in bad credit and can help you find a car note to fit your budget on car that will fit your needs.

You may have heard horror stories about high interest rates and outrageous down payments, but not every story ends that way. Here at Bankruptcy Auto Financing we work subprime lenders that have the tools and experience necessary to find you an affordable loan with affordable monthly payments and terms. Apply online now to see what you could be approved for.

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.