How Long After Filing Bankruptcy can a Person Buy a Car?

Loans May Be Available Right Away

After you've claimed bankruptcy, you can apply for a loan through a subprime lender. With enough money down, you can finance another car. If you pay cash for a car, you can purchase one at any time after your bankruptcy. Some lenders favor bankruptcy situations because you are not allowed to claim it again for almost a decade. Because of this, a lender can collect its money if you default on the loan by pursuing a judgment against you in court.

Wait Until Credit Improves

You can improve your credit situation significantly after claiming bankruptcy. Many people successfully recover from bankruptcy and even keep loans open (before and after the bankruptcy), which improves their credit score. If you can wait until your credit improves (this varies by situation) you can enjoy a low interest rate and affordable loan with little money required as down payment.

Bottom Line

You can buy a car with cash anytime after claiming bankruptcy. If you want to finance a vehicle, expect to put about half of the vehicle purchase price down and suffer a high interest rate (up to 29 percent in some states). It would benefit you financially to wait until your credit improves before pursuing a car loan.

References

• ChristiaNet: Buying A Car After Bankruptcy