Auto loan right after Bankruptcy.
My lawyer recommends getting rid of the car in the Bankruptcy and
finding another car.
This sounds easier said than done.
Won't my crdit be ruined after Bankruptcy? How will I be able to get
another car
loan? My credit score is around 530 at the moment and getting worse.
By the way I have heard of dealerships approving people after a
Bankrupcty, but when I went to a friend who is a salesman at a Toyota
dealership, he said that they absolutely would not consider me for a
car loan after the bankruptcy.
Does anyone know how this works?
There are a lot of "sub prime" lenders that specialize in loans to people
just out of bankruptcy. Unless you put a lot down, you're likely to pay a
high interest rate (about 24%), but you should be able to get a car.
My sister-in-law was able to get a car 3 months after discharge. She
had to shop around a bit but she managed to get one.
Remember that 1) car dealers are anxious to move cars off the lot and
2) a car is probably the easiest thing to repossess if you fault on
payments. The good old repo man will just show up with the tow truck
and that's that. So it might take some talking, but you should be
able to get a car. One hint: don't deal with a regular salesperson.
Talk to the guy in charge of financing and be very forthright about
your bankruptcy. Ask him what he can do for you. You might as well
go straight to the top in this kind of situation. Also, Ford Corp.
has a reputation of being "bankruptcy friendly".