Bankruptcy Auto Finance
- First, go over your credit report. Make sure everything is in order, there is a good chance some accounts may still be open after bankruptcy that should be closed.
- Second, plan your purchase. This is an important part of how to get car finance in bankruptcy. Figure out what you can afford to pay monthly, and what vehicle is right for you.
- Third, use a car loan lender. Auto finance companies for bankruptcy will help to find you find the best deal no matter what your situation is. They will then send you a check, which makes you a pre approved car loan buyer.
- Fourth, explain your situation. When you go to get bankruptcy auto financing they will ask you about your bankruptcy. You now have the opportunity to explain what happened, since sometimes there are hard times and it is unavoidable, they may be a little more lenient if you had difficult circumstances.
Types of BankruptcyThere are two main types of bankruptcy, chapter 7 and chapter 13. Chapter 7 is a liquidation proceeding where the debtor is required to turn everything non-exempt over to the bank. Chapter 13 is where debtors make a deal to pay off their debt over three to five years. They do this to keep their non-exempt materials, but this is only available to people with a predictable income. You can still get bankrupty auto finance for chapter 13 and chapter 7 though the later is more difficult.
Bankruptcy is never an easy thing to go through, but good things may come from it. Following these simple steps you should have your loan that you need and if you make all your payments on time it will greatly help your credit score.