After Bankruptcy Can I Finance A New Car?

A lot of times people think that when you file bankruptcy it is nearly impossible to get another car loan. That is not true. Sometimes, in fact, it can be easier. Once you get a discharge of your debt, the amount that you owe is actually eliminated or drastically reduced, and since that factor makes up a large part of your credit score, bad credit almost always begins to improve immediately. Plus, on top of that, finance companies and banks know that you cannot file another bankruptcy for eight years, so you are a better credit risk because of that. Still, you have to carefully consider whether you want to just keep your old car when you go through bankruptcy and avoid getting new debt very quickly. That may be a wise move.

< Return to Bankruptcy Questions page.