Sometimes a person is stuck between a rock and a hard place and they figure they have no way out but to claim bankruptcy. In a lot of situations I will find myself across the desk from a client that has filed for bankruptcy, for amounts as low as $15000 or even less. We need to look at this amount filed and break it down on how the next lender will look at this when applying for a car loan, auto loan, truck loan, or SUV loan. In my opinion a $15000 bankruptcy is more future risk then a $200,000 bankruptcy. Often we will see clients that are looking to get a bad credit car loan and we see a $15000 bankruptcy on the credit profile. This can sometimes be of a concern to a lender as the lender will be concerned that the client is not concerned with filing for bankruptcy for a smaller amount. This will make a lender think twice about approving a small amount. If we look at a client that has filed for a $200,000 bankruptcy this would lead us to assume that the client will not file for bankruptcy until they reach a significant amount. The lender will see this as a little less risk.
All this being said, bankruptcy is bankruptcy and will remain on the bureau for 6 to 7 years. We don’t want to assume that the credit is good after that time, or rebuilt. It takes time to rebuild credit after filing for bankruptcy. I would always suggest that getting a secured credit card during bankruptcy will help the credit profile rebound once the bankruptcy is discharged. Of course getting a bad credit car loan can assist with this as well. their are lenders that specialize in getting a car loan while In bankruptcy. They will help you get a truck loan, in turn, helping your credit.
For your convenience here are some companies that assist in getting auto loans while in bankruptcy.
- Car Loans for bad credit – http://www.carloansforbadcredit.ca/
- Finance Today – www.financetoday.ca
- YYC Car Loans – http://www.yyccarloans.com/
Just my 2 Cents