Getting on the Road Again After Your Chapter 7 Bankruptcy

Submitted by Jen Jones on Tue, 01/25/2011 - 1:25pm

Getting on the Road Again After Your Chapter 7 Bankruptcy

Millions of people have taken advantage of bankruptcy protections in the past several years, following through on their freedom to file and subsequently end creditor harassment and debt worries amid uncertain economic times.  As a result, many people, people just like you, are now exiting bankruptcy, most often Chapter 7, wondering how to begin on the road to financial recovery, and maybe even hit the literal road by procuring a new (or “new to you”) car in the process.

This is especially important for people who have been undone by unemployment, and are finding that a car, any car, is their only sure method to drop off resumes, take part in interviews, and reliably make it to work—whether that job is brand new, or threatened by lingering job insecurities.

So, while staying within a budget, paying cash instead of plastic for all purchases, and contributing to your overall savings are great financial habits that are always essential to have when exiting the Chapter 7 bankruptcy process, applying (and qualifying) for an auto loan may also be an added necessity that revs up your prosperity prospects. But securing a car loan can admittedly be more difficult following a bankruptcy, requiring a bit more work and a little patience.

As a result, if you need a car loan, here are a few quick tips to help pave the way:

(1) Bigger can be better when it comes to the dealerships you choose for your post-bankruptcy car.  While you may get a good deal at “mom and pop” places, larger auto dealerships are more likely to have the connections you need to find the financing you want.  Explain your situation to the dealership’s finance manager and put the steps in motion that could have you stepping on the gas pedal in no time.

(2) Once you’ve located a larger dealership and identified a financier willing to work with you, you may find it’s also important to provide assurances that you, the post-bankruptcy customer, will actually pay back your auto loan. The simplest way to then secure a loan is by procuring a co-signor or guarantor with good credit.  Regardless of the outcome, don’t get discouraged if you’re denied a loan from the first dealerships you choose, with or without the guarantee of another party.  Where one door closes, another door opens, especially with the assurances of a guarantor.

(3) If a co-signor is an impossibility, money itself sometimes talks. In these cases a sizeable down-payment can do what you alone cannot when trying to convince a finance officer that you’re a good candidate for a loan. A 20% down payment is the very amount that can get those wheels moving.

As with any purchase on credit, buying a car can be a sizeable expenditure and a significant financial investment over several years. Don’t be drawn in by dealership offers and deals meant to put you in more car than you need or can afford. As you’re well aware by now, a little austerity now can pay significant dividends over the long haul.

And if you’re considering bankruptcy to get you on the road to financial freedom, knowing a qualified bankruptcy attorney can also help you not only conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— to keep you moving (literally and figuratively) in your fiscally-viable future.  The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation. Just call toll free to +1-919-646-2654, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.

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