Bankruptcy Auto Finance
A great way for you to build up your credit after filing for bankruptcy is to see the need for bad credit auto financing. The bankruptcy must be closed though before you can apply for an auto loan. Otherwise they will just ignore your bankruptcy auto finance application. Here are a few steps you should take to get your approval.
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 getting bankruptcy auto finance. Figure out what you can afford to pay monthly, and what vehicle is right for you.
Third, use a car loan lender. An online car loan lender 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.
There 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 bankruptcy auto finance for chapter 7 and chapter 13.
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.