There are many finance companies that provide services such as arranging car loans for customers who have been declared bankrupt. It is generally believed that filing for bankruptcy means closing the door on all future possibilities of getting loan approvals either for a home or an automobile. While this may be true to a large extent, it cannot be considered as a universal rule.
It is possible to grant bankruptcy car loans to individuals who have filed for bankruptcy either under Chapter 7 or Chapter 13 of the US bankruptcy laws. Buying a car after bankruptcy is well within the realms of possibility, subject to certain conditions. One of the first steps that an individual should take is to try and improve their credit score. This can help them in getting a bankruptcy car loan at a reasonable rate of interest.
Monitoring your credit and cutting out avoidable and unnecessary expenses can help you get closer to getting your car loan approved post-bankruptcy. For those who have claimed bankruptcy under Chapter 7, the rule states that the debtor cannot file for bankruptcy for at least eight years.
Since this is more than the term for most car loans, the lender can consider granting a car loan to the debtor, secure in the knowledge that he or she cannot file for bankruptcy during the term of the loan. However, you must have a clear idea of the rate of interest for your car loan, as they tend to be unusually higher if your credit record is poor.
There are many advantages of getting a bankruptcy loan approved through an established car financing company. They have experienced finance professionals who can make a meticulous assessment of your present state of finances and get the right car loan plan for your type of situation. Usually, there is no need for any co-signer to get your bankruptcy car loan approved. The process is not long drawn and requires you to fill only a single form.
In fact, if you make proper and timely payment of monthly installments of your car bankruptcy loan, your credit score automatically improves. It is advisable to approach reputable car finance companies for getting your car bankruptcy loans approved.
You can even apply for such loans online by filling the online loan forms giving all the requested details as accurately as possible. If you meet all the initial qualifying requirements, you can expect your car bankruptcy loan to get approved in the shortest possible time.
