Car Finance After Bankruptcy
You may be able to qualify for car finance after bankruptcy. However to be considered by a lender, you must be discharged. Before discharge, you are still considered insolvent in law and most lenders will not consider your application.
Some lenders may offer small short-term loans, however these are only for a couple of thousand and can be very pricey. If you are still in bankruptcy and would like to borrow for a vehicle, we will not be able to assist.
Lenders will be interest to confirm how your financial situation has changed since you went into bankruptcy.If you are now earning more money, and can demonstrate stability in employment, and place of residence that will help.
Another important thing to demonstrate to any potential lender would be a stable savings history over the last several months since being discharged.As a rule of thumb you would need to be discharged at least 6 months before being able to qualify for a car loan.
If you are looking for a car loan, you would also want to make sure that since your discharge, your credit history is pretty much impeccable. There can be no late payments or missed payments as these are almost certain to guarantee application decline.
Be prepared to pay more than clean credit borrowers. Discharged bankrupts need to apply to second tier lenders who are prepared to consider their finance application. While you may qualify, the loan will cost more, so borrow responsibly.