Is it possible to purchase a vehicle following a bankruptcy?
You might be wondering how filing for bankruptcy will effect your ability to make large purchases like buying a house or automobile if you recently filed for bankruptcy or if your bankruptcy is mentioned on your credit record. Even though a bankruptcy remains on your credit record for seven to ten years, having a bankruptcy on your record does not automatically prevent you from being authorized for financing.
When to Purchase a Car Following Bankruptcy
It is not necessary to wait for your bankruptcy to be removed off your credit report in order to be authorized for a car loan or financing; nevertheless, legal professionals suggest delaying the purchase of a vehicle until after your bankruptcy has been dismissed or you have gotten your discharge.
Car Purchasing Following Chapter 7 Bankruptcy
Ninety days following your bankruptcy hearing, the bankruptcy clerk should send you your discharge notification if you filed for Chapter 7 bankruptcy, according to AllLaw.com. You should be able to purchase an automobile after you get your discharge letter. To make sure you are in compliance with bankruptcy laws and regulations, make sure you speak with your bankruptcy attorney.
Car Purchasing Following Chapter 13 Bankruptcy
Additionally, according to AllLaw.com, filing for Chapter 13 bankruptcy might take three to five years to finish. In the event that you need to purchase a car while going through Chapter 13, you might have to file a motion and obtain the bankruptcy court’s approval. You can get more advice on whether you can buy a car while filing for bankruptcy from your bankruptcy lawyer.
Obtaining Auto Loan Approval Following Bankruptcy
In spite of the bankruptcy appearing on your credit report, there are lenders and finance businesses that will nevertheless approve you for financing. An indirect auto loan company works with over 12,000 car dealers nationwide to approve auto financing for new or used vehicles for customers with bad credit, no credit, or Chapter 7 or Chapter 13 bankruptcy.
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