Are you worried about buying a car after bankruptcy? It’s a common fear, but buying a car after bankruptcy is not as difficult as you may think – even if you haven’t yet been able to repair your credit.
Making a Major Car Purchase After Filing Bankruptcy:
Recent bankruptcy filers are often under the misconception that making a significant car purchase after bankruptcy is difficult or impossible. While bankruptcy does show up on your credit report for 7-10 years, the “weight” of the penalty decreases over time, so there’s no need to wait to purchase a vehicle until it falls off your credit report. Buying a car after bankruptcy can offset the damage of the penalty – it’s one of the actions recent filers can take to repair their credit.
How Soon After Bankruptcy Can I Buy a Car?
Buying a car after bankruptcy is not impossible; in fact, it’s a fairly common occurrence. While you may not want to go out and purchase a vehicle the day after you file, you can easily seek financing for a vehicle purchase within six months of your final discharge date.
Rebuilding Your Credit After Bankruptcy:
After you receive your discharge of debt and your bankruptcy is complete, you should take steps to rebuild your credit. Take these steps before attempting to make any major purchases (like buying a car). In a perfect world, bankruptcy petitioners repair their credit (and have a good credit score again) before they take out any larger loans (like loans for a home or vehicle). But in some cases, recent bankruptcy filers need a car as soon as possible to get to work or transport their family, etc. So, in some cases, waiting around before purchasing a vehicle is not a viable option.
When You Need to Buy a Car After Bankruptcy:
Generally speaking, bankruptcy petitioners should plan to spend at least six months rebuilding their credit after bankruptcy before seeing a positive change in their credit score. Before you apply for a loan to purchase a new car after bankruptcy, bump up your credit score as much as possible. Actively seeking to improve your credit score is essential because it will determine whether or not you are approved for a loan, as well as determining your loan terms, interest rate, etc.
No matter why you need to file bankruptcy, the law office of Kenneth C. Rannick P.C is ready to help you determine the best options in your situation. You don’t have to deal with the financial struggle alone. Bankruptcy can be an overwhelming process, but at the law offices of Kenneth C. Rannick P.C., you’ll work with Consumer Bankruptcy Specialists. We help relieve the stress, ensure all bankruptcy paperwork is appropriately filed, and work to expedite the bankruptcy process so you can get a fresh financial start.