Despite bankruptcy being a fairly intimidating journey on which to embark, once you have emerged on the other side debt-free, it can be a fairly liberating experience. Of course, picking yourself up and getting back to your “normal” can take some finesse in the early post-bankruptcy stages, and today we examine the process of getting a car following your Phoenix area bankruptcy. As with most purchases, the two things to consider in your purchase are time and money.
Time: When to Buy
Timing your auto purchase well can make a big difference on your financing options. Obviously, the longer you wait after your bankruptcy—assuming you are constantly building and bettering your credit—the easier it will be for you to obtain car loans at a reasonable rate.
Of course, the world is far from ideal, and you may not be able to wait to get a car. If you filed for a Chapter 7 bankruptcy, you will have to wait for your discharge notice before you are able to apply for financing, which can happen as soon as three months after your initial creditor meeting. If you are in the middle of a Chapter 13 bankruptcy, you will need the permission of the bankruptcy court to proceed—your bankruptcy trustee can assist you with this process.
Money: Turning Cheddar into Wheels
You may have been pleasantly surprised after going through your Arizona bankruptcy process to find that you do not end up destitute when all is said and done—in fact, by discharging debts that previously controlled every penny, you may have much more cash on hand than before. If you are able to put some aside after paying your bills each month, you may be well on your way to purchasing a used car for cash, or having a sizable down payment for a newer car.
Financing a car is also a possibility for you, but beware of the waters—they are less friendly than before your bankruptcy. Many creditors will be quick to offer you loans at astronomical interest rates, but spend some time shopping around. If you are able to secure a car loan at a reasonable rate, it is an excellent opportunity to improve your credit by making regular monthly payments.
If you have questions about the car purchasing process after your Phoenix bankruptcy, ask the Valley bankruptcy attorneys at Curry, Pearson & Wooten—we are happy to help guide you through the process. Call us today at 602-258-1000, and speak with one of our lawyers now!