Can You Buy a Car While Going Through Bankruptcy?

There’s no question that bankruptcy carries a negative stigma with it for most people. While it’s true that in most cases bankruptcy represents deep financial struggles, the fact is it is not all bad. Filing for bankruptcy can actually help people get a more solid footing when it comes to their finances and in many cases, people can start over fresh without the overwhelming burden of debt hanging over them at every turn. There are some downsides to bankruptcy but it doesn’t have to be the nail in your financial coffin, so-to-speak.

For example, did you know that even if you have filed for bankruptcy, you might still be able to purchase a car, with the help of financing? That’s right. Getting a car loan is not impossible even if you’ve filed for bankruptcy. In order to pay off your debt you need steady income. For many people that means buying a car so they can get to their job every day. The important thing to remember is to follow all your bankruptcy requirements and not to get into more debt that you can’t control. You should first make sure that you find a dealer that knows how to work with someone who is dealing with special financing circumstances like bankruptcy.

When you have chosen the right dealer and the right car, it’s time to get the right deal. Don’t make a purchase that is out of your budget and be sure you understand the exact terms of the loan – interest rate and length – and how much your monthly payment will be. You will need to share all of this information with your trustee as well and your trustee will weigh the newly proposed debt against how badly you need the car. That’s why it’s important to choose a modestly priced vehicle. Lastly you will need to present your case to the court to receive permission to purchase the vehicle. Your creditors can oppose your request, but ultimately the court will decide whether or not you can make the purchase.

While there is no guarantee that you will be able to purchase a vehicle while you are going through a bankruptcy, there is also no guarantee that you can’t. With the right help and advice you can figure out what your options are and move forward accordingly. At theWhitten & Whitten we can help you determine if seeking to purchase a car while in bankruptcy is a good idea. We can also help you file for bankruptcy if you haven’t already. Please click here to contact us online or call us at 219-756-0555.