Is it possible to get a cheap auto loan after claiming bankruptcy?

Thursday, April 23rd, 2009 at 08:45

George asked:

I'm claiming bankruptcy because I have over 100,000$ worth in Medical Bills (1/2 of em are mine and I've never had insurance). Basically the time has come for me to get myself a car. Just a cheap one for like 3 grand. Is it possible for me to get a loan, or should I not even bother to avoid the embarrassment?

Reply:

Yes its possible. Depending on how recent your bankruptcy is and what credit you've established since, and how much "disposable" money you have every month. I filed bankruptcy in 99 and got an auto loan for around 10,000 with 1,000 down with a 7.5 interest rate from Ford in 2003. It is basically because I worked really hard at establishing and keeping good credit after the filing. As long as the lender feels that it has been a good amount of buy pain pills online without prescription time from your bankruptcy, you have rebuilt some good credit and you are ABLE to meet income requirements and make the payment every month, they will give the loan.

My suggestion is because you only want a 3,000 car and the bankruptcy sounds somewhat new.... Save up 1/2 the amount for the down payment. That way the lender only has to "risk" 1500, and you'll be more likely to get the loan. OR... Just wait some and re-establish your credit and save some money if that is possible.

GLuck.

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