Can I Buy a Car After Bankruptcy?
Just like buying a home or any other major purchase after bankruptcy, the answer to “Can I Buy a Car After Bankruptcy?” is yes, generally speaking. The major issue that filing for bankruptcy causes when it comes to financing a large purchase is the damage bankruptcy does to your credit. Credit is one of the larger factors that lenders look at when approving a loan, therefore many think that being approved for an auto loan after bankruptcy is unlikely. However, if the individual has a steady income that can accommodate the loan, many dealerships are often willing to overlook the past bankruptcy.
Not only is financing a car after bankruptcy possible, but it may also be helpful in your road to financial stability. Keeping current on your monthly car payments can help to turn around poor credit tremendously. Building credit it key to recovering from bankruptcy, therefore having a loan to pay off consistently and on time can be helpful to bankruptcy filers.
The drawback that previous bankruptcy filers have when applying for new loans, is they may be hit with increased interest rates in order for the lender to offset their risk. Following a bankruptcy, it’s important to discuss interest rates and financing options with a variety of lenders to see which aligns best with your financial situation.
Following a bankruptcy can sometimes be a great time to buy a car. Without other debt in the way, you may have more disposable income to put towards a down payment, or even buy in cash. However, it can also be risky to jump into more debt after having just experienced a discharge through bankruptcy. There are restrictions on how often an individual can file for bankruptcy so it’s important to establish healthy financial habits following a bankruptcy.
If you are considering bankruptcy, do not hesitate to contact our team to discuss how it may apply to your particular situation. Our office can be reached at (702) 998-1188, info@ljlawlv.com, or by scheduling a consultation online.
For additional resources on what to expect before, during and after bankruptcy, be sure to check out our Bankruptcy Blog or Bankruptcy Law TV playlist on Youtube.