Can You Get A Car Loan After Bankruptcy?
When it comes to deciding if you should choose bankruptcy to help deal with your financial problems, one of the biggest worries is losing your vehicle. You need a car to get to work, right? If you lose it, then how do you keep your job? Don't worry. Chances are high you will get to keep your vehicle, but you also have options if you choose to get rid of it.
When You Should Give Up Your Vehicle
Is your vehicle worth much less than you're paying for it? Are you paying hundreds of dollars a month that could be used to pay other expenses? Did you rashly buy a car that you don't need just because it's fast and pretty? If you said yes to any of those questions, then you might want to give up your car during the bankruptcy procedure.
Bankruptcy Auto Loans
How do you get a new car if you give up the one you have? It is possible to get an auto loan even though you chose bankruptcy. There are several companies that will give out loans to bankrupt individuals. Of course, they won't give money to just anyone. These loan companies typically decide your worth by looking at your past loan payments. Did you stay up-to-date on your car and mortgage payments despite financial difficulties? This looks good to the loan companies and makes them trust you.
Go Cheap to Save Money
Bankruptcy car loans are considered high-risk loans. Expect to have a very high interest rate. Offset the interest rate by only taking out enough money to get a vehicle you need and not one that you want. You can still choose a nice enough car that you like, but avoid the costly fancy cars that got you into trouble in the first place.
Save Up for the Dream Car
Does this mean that you will never own that bright red sports car you always wanted since you were a teenager? Not at all. It does mean that you have to save up for that car instead of taking out a loan. Since you got rid of that car you didn't need and opted for a bankruptcy car loan and a cheap car, then you can start saving for the sports car right away.
Go talk to a professional bankruptcy lawyer, such as those found at Greg Dunn Bankruptcy, for more information.
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