It is difficult to declare bankruptcy, but it could be the right one. After you have accepted that your debt is too large, you can begin to think about the future. You may need clarification about purchasing a car after bankruptcy.
It is possible to purchase a car even after bankruptcy filings. Your options will vary depending on the type of bankruptcy you have, how long ago it has been, and why you need the car.
Bruner Wright offers free consultations to discuss bankruptcy options.
Is It Possible to Buy a Car After Declaring Bankruptcy?
Lenders and auto dealers do not have to exclude buyers who have been in bankruptcy.
Your car-buying experience could be affected if you file for bankruptcy. As a result, you may be subject to higher interest rates.
What if I File for Bankruptcy?
After declaring bankruptcy, you don’t have to wait until then to purchase a car. You should know that bankruptcy can impact the terms of any loans you take out.
These impediments tend to diminish over time. As the years pass, your credit score will become less affected. To help build your credit score, it is a good idea to open and use several consumer credit accounts once a case has been filed.
What Should I Do After My Bankruptcy Discharge?
After you have paid off your debts through bankruptcy, you are free to purchase any car you like. Even if your credit score is stable, it may be more financially feasible to pay cash. These payments can help rebuild your credit score if you finance the purchase.
Financing Restrictions
A debtor in chapter 7 bankruptcy would not like to use bankruptcy estate property, trade-in vehicle or cash may be included in the purchase transaction. It is essential to dispose of bankruptcy estate property before it can be used for purchases.
This post was written by Trey Wright, a Jacksonville chapter 7 attorney with extensive experience! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, specializing in bankruptcy law, estate planning, and business litigation.
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