Filing for bankruptcy is a big step toward your financial freedom – eliminating all or most of your debt, stopping creditors from harassing you, and getting back on your feet.
If you’re considering bankruptcy but you’re not sure whether you’ll be able to purchase a car after, you’re in the right place. We’ll explore all your options and help you get the most benefits by consulting with a leading bankruptcy lawyer in Oceanside.
How can I buy a car after filing for bankruptcy?
Declaring bankruptcy does not mean you won’t be able to purchase a car. In fact, there are many ways you can get it depending on which Chapter you file, when you plan to make the purchase, and whether you want to pay cash or take out a loan.
Chapter 7 makes it possible to get rid of your debt. While some of your assets may be taken to cover the debts, your car might qualify for an exemption and you could keep it without having to purchase a new one. If not, you should wait until all the proceedings are finalized to see how and when would be the best to buy a car.
If you file under this Chapter, you need to agree to a payment plan to pay off your debts. Again, you might be able to keep your car if you can keep up with your payments. If you need to purchase a vehicle, you may be able to do so during the bankruptcy process with permission from the court. Once the process is done, you can buy a car without special permission.
If you’re able to, it’s better to purchase a vehicle using cash than borrow as you want to build up your credit score again. This option is cheaper in the long run. Also, you can buy a more affordable car now and get the one you really want later on.
Taking out a loan
If paying cash is not an option, a different way of financing a car is also available. You should be able to take out a loan, but you want to take a few things into consideration:
- Check your credit – You should make sure there are no mistakes in your credit score. You can do so for free every 12 months.
- Start rebuilding your credit score – If you have any remaining loans, pay them on time. You could also get a secured credit card which doesn’t require a high credit score but a deposit.
- Set a budget – Be sure to evaluate your budget. It’s also a good idea to use a car loan calculator to understand the costs better and see if and how much you should save for a downpayment.
- Browse – It’s best to check out different lending options, starting with your bank. Compare interest rates, monthly payments, and terms to get what’s best for you.
As you can see, purchasing a car is definitely possible, so feel free to take the next step and file for bankruptcy to get your financial situation in order.
Which bankruptcy lawyer in Oceanside can help me file for bankruptcy?
The reliable and experienced attorneys at Chang & Diamond are at your disposal! All you have to do is book a free consultation with us, and we’ll handle the rest – from answering your questions about the current economy in the U.S., having an ex-spouse filing for bankruptcy, or taking out a personal loan in Chapter 13 to gathering and submitting your documents on time and representing you with the utmost care and expertise.
Whether you’re in Oceanside or nearby in Southern California, don’t hesitate to contact us and let us help you get back on track!