A bankruptcy filing can be stressful, but gives you a chance to start fresh, financially. It crumples your credit report and abruptly brings down your credit scores. You may get terrified to take any further loans like a car loan. However, with the help of bankruptcy lawyers, you can easily get through the whirls of filing bankruptcy.
The Chesapeake bankruptcy attorneys at the Law Offices of John W. Lee, P.C provide free consultation for most legal issues. Since 2002, they have been serving the residents of Hampton Roads for their legal expertise for bankruptcy, criminal, family, and estate planning cases. They provide a reliable and quality service at an affordable price with excellent results.
How Does Bankruptcy Impact Your Buying a Car?
In Hampton Roads, your ability to buy a car or take a car loan is highly influenced by the type of bankruptcy you have filed. They are, generally, of two types –
- Chapter 7 Bankruptcy – In this case, some of your possessions and assets are liquidated to repay your debts. First, your unsecured debts are paid followed by secured and nonpriority debts. Such bankruptcy stays on your credit reports for up to 10 years and prevents you from taking any further loans. Even if you buy a car, your Hampton Roads bankruptcy trustee may force you to sell it to repay your outstanding debts and consider you as a fraud.
- Chapter 13 Bankruptcy – It assigns a bankruptcy trustee to design a debt repayment plan for you based on your income and assets. If your creditors agree to a payment amount that is affordable to you, you can see court permission to buy a car.
How to Obtain a Car Loan after Your Bankruptcy
After you have declared bankruptcy in Hampton Roads, your credit report and credit score diminish. To get a car loan, you need to increase your credit score points by below tips –
- Check Your Credit Report – You must make sure that there are no errors on your credit report which will bring down your credit score even further.
- Set Your Budget for a Better Down Payment – You must calculate your car payment and save according to for a down payment to increase your creditability and lower the interest rates. You can compare the price range for different cars like used and brand-new cars so that you will be able to pay your other bills on time.
- Get a Lender’s Preapproval – Look for a bad credit car loan lender in Hampton Roads and get their preapproval for financing.