Experienced Bankruptcy Attorney in Illinois
Unless you live in a city with excellent public transportation, a car is a necessity for daily life. Sometimes, we have to purchase a car under less-than-ideal circumstances such as after filing for bankruptcy. Though it may be more difficult, it is possible to get an auto loan after bankruptcy.
There is life after bankruptcy, including the opportunity to rebuild your credit. A Chapter 7 bankruptcy will stay on your credit record for 10 years. Chapter 13 bankruptcy appears on credit reports for seven years. However, you do not need to wait until the bankruptcy comes off of your credit report before you purchase a vehicle.
Bankruptcy has become much more common over the last decade. While it is a serious matter, creditors have learned that people who file bankruptcy can be creditworthy again in a relatively short time.
If you need a car now, there are steps you can take to improve your chances of receiving an auto loan such as:
- Having a stable source of income
- Paying your bills and other obligations on time
- Saving money to make a bigger down payment on the vehicle
- Rebuilding your credit by getting a small loan for something else first
Beware of lenders who promise loans to people with "bad credit." They often charge unreasonably high interest rates. Consider applying for an auto loan at a credit union. Their loan rates are typically lower than big banks and dealerships.
Securing an Auto Loan After Filing for Bankruptcy
Please call The Law Offices of Chad M. Hayward, P.C., at 888-804-8641 to schedule a free consultation with an experienced bankruptcy lawyer. We have offices in Chicago, Aurora, Joliet, Schaumburg, Palos Heights, Northbrook, Oakbrook and St. Charles.
