Monday, July 9, 2012

Bankruptcy Car Financing Should Not Be Humiliating

Bankruptcy Does Not Mean No Car Loan

If you are suffering from a bankruptcy on your credit history, you need to immediately get a mindset that no one is doing you a favor by financing or selling you a car. If anything, you are doing the lender or the dealer a favor by offering them the chance to help you with your bankruptcy car financing. If a dealer or lender tells you that he or she is doing you a favor, you need to find another dealer. A lender or a car dealer should treat those with a bankruptcy with the same respect and integrity offered to good-credit borrowers. Many people have suffered a bankruptcy in these dismal economic times.

No Preconceived Notions

You may have been hearing or reading that bankruptcy car financing is not possible. Nothing could be further from the truth. Much of that stuff probably does not even pertain to you. Your bankruptcy car financing is as individual as yourself. You will want to find a lender or car dealer who will sit down with you and discuss your particular needs in light of where you stand financially.

Bankruptcy aside, your lender or salesperson will want to know some important factors:

Do you have a steady job with a decent salary?

Does your salary afford you the wherewithal to meet a bankruptcy car financing payment?

Do you intend honor the repayment terms as specified in the contract?

Other factors for bankruptcy car financing will require some documentation as well:

Have you been on the job for at least three months? (pay stubs or bank statements)

Do you have proof of residency? (usually a utility or cell phone bill)

Have you held a direct-deposit checking account for at least three months? (bank statements)

Have you reached the age of majority? Government issued identification to prove it? (18-21 by state)

Your lender or seller may want to ask you specific questions about your bankruptcy. To qualify for bankruptcy car financing, be prepared to answer these or similar questions:

How long have you been unemployed? Or, did you have a temporary job loss?

Did you have to take a temporary personal leave of absence?

Did you or a family member have unexpected medical bills?

Did you go through a divorce?

If you can find a good lender or seller who is willing to sit down, have a conversation revolving around you and your need for bankruptcy car financing, and who treats you the same as someone with a good credit report, you are probably in good hands.

Bankruptcy Is a Trial, Humiliation Should Not Be Added

Of course bankruptcy is going to have you feeling some negative emotions about yourself, your finances and maybe even the world in general. Sometimes bankruptcies are the result of bad or even dishonest choices, but this is not the rule off thumb. Bankruptcies happen to good people and it is a way to start anew and start rebuilding. Many have been down the same path; you are not a financial pariah. A good thing about bankruptcy car financing: If you make your payments on time and see the loan through to maturity according to the terms of your contract, you will be taking a big step toward getting your credit history back in shape.

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