Can I Finance a Vehicle After Declaring Bankruptcy?

Bankruptcy can make financing loans complicated, but you can still apply for auto credit. Even if you’ve had to file for bankruptcy, you can take these steps to improve your chances of securing financing. Visit PA Auto Credit to get the financing support you need.

Chapter 7 vs. Chapter 13 Bankruptcy Financing

If you are declaring bankruptcy under Chapter 7, your current assets may be sold to pay off any debts. You will need to wait until the process is finalized before applying for a car loan or any other financing, as it can be considered fraud while the process is happening. Under Chapter 13 bankruptcy, in which you make regular payments set by the court, you’ll need to apply for permission from the court or wait until the process is over.

Financing after Bankruptcy

It takes a while to rebuild credit after a bankruptcy, so start planning ahead for your next car as soon as you can. You should begin putting money aside for a down payment, as you will likely have to put more money down with weaker credit. You should also keep in mind that it takes at least 60 days for court orders to be sent to financing agencies, so bring a printed copy of your discharge if necessary.

Adding a Co-Signer

A co-signer with a strong credit history can be a lifesaver when financing after a bankruptcy. However, make sure your potential partner is informed about your financial situation. Any missed payments show up on both of your credit histories, so clear communication is essential.

Apply for Post-Bankruptcy Financing at PA Auto Credit

Recovering from bankruptcy is hard, but at PA Auto Credit, we’re here to make it easier. Visit our office in Fairless Hills, PA, or contact us online to find out more about financing with bad credit today!