Low Interest Bankruptcy Auto Loans - All About Them
If an individual is pursuing Chapter 13 bankruptcy
, he/she has to pay off all or part of the debt in a period of three to five years. In this case, the loan terms one settled for at the origin of the loan will be continued most probably. One will be liable to pay off the debt as well. Chapter 7 bankruptcy is also known as liquidation. The debtors assets are sold off, and creditors debts are cleared using the collections. If your car is not under the non-exempt assets, you will lose it.Auto loans after bankruptcy are not easily available. Building your credit to some extent will help. Apply for a credit card, and pay off bills regularly. This will improve ones credit ratings to some extent. Increasing your credit worthiness is vital. Apply for a bank account and stay current on it. Improving sources of income will surely help. Some free lance work, or weekend jobs will be beneficial. All these factors will build your credit and lenders will see your efforts. This will be a point in your favor.
Nowadays, several lenders specialize in bad credit bankruptcy auto loans. These car loans come with higher rates of interest and stringent repayment conditions. The obvious reason is the high risk involved for the lenders. It is advisable to push the loan application for a few months if adequate funds cannot be arranged. A larger down payment will help avail lower interest rates. And staying current on the car loan is inevitable. Any kind of defaulting will attract enormous penalties.
No cosigner car loans can be a great opportunity to add some points to ones credit score after bankruptcy. With timely payments, one can jump to higher scores, and then avail better rates by refinancing. May unforeseen circumstances can lead to bankruptcy. Lenders recognize that bad credit and bankruptcy need not always be blamed on the individual. We have helped many distressed individuals in obtaining car loans after bankruptcy.
by: Shelin Michel