Getting a Car After Bankruptcy

Even when it's painfully obvious that they need to file bankruptcy, lots of my clients hesitate to file because they are absolutely scared to death about their car.

Some worry that they will lose their car if they file bankruptcy (you won't lose it). An even greater number of my clients worry that they'll never ever be able to buy another car if they file a bankruptcy.

Well, here's some really good news for you. If you file bankruptcy, it doesn't mean that you'll never be able to get another car. In fact, you'll probably be shocked at how easy it is to get another car after filing bankruptcy.

First, keep in mind that lenders don't necessarily care about you having a bankruptcy on your credit report. They primarily care what your specific credit score is. Whether you have a bankruptcy or not can be something that effects your overall score, but they really care about that specific number and not all the little factors that went into calculating that number.

So the real issue is this-- are there lenders out there who will make you a car loan with a low credit score (which might be low because you are in bankruptcy). The answer is a definite yes!

I've had clients who bought a brand new car off the showroom floor only 7 days after their Chapter 7 bankruptcy case was over. I've even had clients who bought a new car WHILE THEIR BANKRUPTCY CASE WAS STILL GOING. And of course, lots more of my clients bought a quality used car a few months after their bankruptcy case was over.

Now understand, I'm not saying you're going to be able to go out and get a new Jaguar or a new Porsche. For the guy who bought the new car only 7 days after the case was over, I think it was a Kia. For the people who bought it during the pendency of their bankruptcy case, it was a Chrysler. For the people who got a certified pre-owned, it has been all types including Fords, Toyotas and Nissans.

There are a number of lenders out there who have programs specifically designed to help get borrowers into a new car loan even when they have a recent bankruptcy. I can't necessarily tell you that it's a great idea for you to file bankruptcy and then go right back out there and borrow money, but I will tell you that it can be done.

So how am I so sure that you can still get a car if you've filed bankruptcy? Because I've seen it with my own eyes!

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