How Long to Wait For An Auto Loan After Bankruptcy Discharge
Bankruptcy filings have been up the last few years given the economy. If you’ve filed, you may be wonder how long you must wait for an auto loan after bankruptcy discharge.
Bankruptcy is the act of getting a second financial chance. It occurs for a host of reasons, but all involve getting into financial trouble in one way or another. It might be because you ran up credit card debt or it might be because you lost a job. Regardless, many are given the impression that a bankruptcy filing will kill their prospects for getting a loan. This simply is not true.
How long do you have to wait for an auto loan after bankruptcy discharge? The answer may shock you because there is no wait time. A bankruptcy discharge creates the proverbial line in the sand when it comes to your finances. The debts you had before that date are no longer binding unless the court indicated as much. Everything after the discharge day is part of a clean slate that gives you a new lease on your financial life.
So if you don’t have to wait, can you realistically hope to get an auto loan given your bankruptcy filing? Get ready for your second surprise. Not only can you get the loan, but you will be considered a prime candidate so long as you have a job. How can this be? Well, it is for a rather cynical reason. The lenders know that you can’t file bankruptcy again for at least another seven years. Since most car loans are no longer than six years, this means the lender doesn’t have to worry too much.
There is a third less obvious reason why getting your car loan won’t be a problem – you have no debt! A big part of the credit analysis has to do with what debt you are carrying versus the total credit available to you. Although you no longer have any credit per se after bankruptcy, you also don’t have any debt. This lack of debt will weigh in your favor.
How long do you have to wait to get an auto loan after a bankruptcy discharge? The answer is simple. You don’t have to wait at all and you’ll be surprised how easy it is to get a loan. Is this a great country or what?