Many people who live in Bergen County and the surrounding areas need a car on a daily basis. If you are one of these people and have fallen behind on your financial obligations, you may be hesitant to file for bankruptcy because of the way it may affect your ability to get a car loan. Fortunately, bankruptcy does not make it impossible to get financing for a car and, in some cases, may actually make it more possible to do so. Some common scenarios are explored below.
You are Behind on Your Bills and Have Not Filed for Bankruptcy
If you are considering bankruptcy but have not yet filed, chances are your credit is not in a very good place. After all, why would you be considering bankruptcy if you were on top of your finances? In this scenario, any car loan that you are able to get would likely come with an exorbitant interest rate that would significantly raise your monthly payments.
You have Filed for Bankruptcy and are Seeking a Car Loan
If you were to apply for an auto loan after filing for bankruptcy but before the case was concluded, there is a good chance that the lender would want to wait until the bankruptcy case was over before extending you credit. If you were to find a lender willing to give you an auto loan, the interest rate would likely be very high.
Your Bankruptcy Case is over and Your Debts have been Discharged
After a Chapter 7 bankruptcy, many (if not all) of your debts will be discharged, leaving you with a clean financial slate. As a result, lenders actually may view you as a safer investment than a person who is behind on their bills but has not yet filed for bankruptcy. Of course, you will still be considered a high-risk debtor, so any financing you get will have a fairly high interest rate. The good news is that with time, effort, and good financial habits, you will be able to rebuild your credit and obtain financing on more favorable terms.
Call John L. Schettino, LLC to Speak with a Skilled New Jersey Bankruptcy Attorney
If you have fallen behind on your payments and would like to learn about how bankruptcy may be help you, you should call attorney John L. Schettino today. In many cases, people who have fallen behind on their bills find themselves in a much better situation immediately after they file for bankruptcy. To schedule a free consultation with Mr. Schettino, call our office today at 201-498-9768 or send an email to [email protected].