The first problem with buying a car right after filing a chapter 7 bankruptcy, is that your debts are still not officially eliminated. The one way you may be able to buy a car is once you receive your bankruptcy discharge notification. Now there are a number of factors that go into buying a car after this process: The first is that the creditors’ collections will stop once you file for chapter 7 bankruptcy, but like mentioned before, it will not clear your debts. This means that you will still need to go to court and give these creditors time to object to your bankruptcy case. Once you finish this process, you have in essence, just cleared all of your debts by filing for bankruptcy, and you will be much less of a credit risk to car dealerships.
The second factor to consider is the car dealer themselves. In today's age the modern car is much more sustainable and longer lasting than the cars of old. So that leaves car dealers with a lot more inventory than they want. This trend will give them more motivation to remove cars from their lots, even to those who have filed a chapter 7 bankruptcy and have terrible credit. Will you be able to buy the 2017 BMW 7 Series? Most likely not. But in a time that you may desperately need a car to keep your life sustainable, there will be car dealerships who will likely let the bad credit slip by. The one constant that you might want to make sure of is that you have a steady rate of income and employment to make payments on the car.
Filing for bankruptcy is never an easy process, and may be a taboo subject to bring up amongst your peers. However, it will give you a reset of your credit, allowing you to make purchases you wouldn't have been able to make before. Be sure not to fall into debt again though! You are only allowed to file for Chapter 7 once every 8 years.
The process of bankruptcy can be a taxing and confusing event for any person, so make sure you contact the Law Offices of Nick Del Pizzo if you need help in this troublesome time.
Please feel free to call us at 410-288-5788