Your first auto loan after filing bankruptcy probably had a high interest rate. Are you stuck with that interest rate until the car is paid off? Or can you refinance to lower your rate?

Save money by Refinancing

Believe it or not, you can save money by refinancing your auto loan after bankruptcy, as long as you stayed current on your payments. Typically, you can refinance your loan around the half-way point to get a lower interest rate. By that time, your credit score should have increased to the point where refinancing is possible.

Of course, for this to truly work in your favor, you must owe less on the vehicle than what it's worth. If you're upside down on the loan, meaning you owe more than the vehicle is worth, you might be able to extend your loan term but this won't save any money in the long run. If you're desperate for a little extra money each month, this might be something to consider though.

It all Starts with the Right Bankruptcy Financing

Starting with the right bankruptcy financing for pre-owned cars will ensure that you can save money when you refinance. Ideally, you would want the loan to be for 36 months, and the monthly payments to be no more than 15% of your income. This will make it possible for you to make your payments on time, and build up equity in your car.

When you go to refinance, you'll owe considerably less than you originally financed. Thanks to your new spending habits, you should get a lower rate for the loan on your people hauler. You can use this extra money to pay off other bills or build up an emergency fund.

Applying for Bankruptcy Auto Financing Online

Thanks to companies like BankruptcyAutoFinancing.com, it's never been easier to apply for bankruptcy auto financing online. We've helped thousands of people with their car loan needs. To us, it doesn't matter if you are in open chapter 13 bankruptcy, or a discharged chapter 7 bankruptcy from a few years ago.

Our network of lenders will get you the best rate possible for your car loan. You'll be able to continue driving your current car, or even trade it in for something else. Either way, you'll be happy that you found us.

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.