When you have filed for bankruptcy, obtaining a car loan can be more
difficult. But it is possible, this is auto loan bankruptcy.
Stay out of bankruptcy if you can:
Bankruptcy is the nuclear bomb of the credit world -- worse than delinquencies,
loans or collections. Its impact, however, depends on how many black marks you
made on your credit before you filed.
Bankruptcy can knock 200 points, or more, off the score of someone with
otherwise good credit. People with multiple delinquencies or collections on
their reports will see less of a decline because their scores are low to begin
with. Either way, recovering from a bankruptcy can be tough. Once a score is
pushed below 620, which bankruptcy inevitably does, credit becomes scarce and
far more expensive.
High-interest lenders love recent bankruptcies, because they know consumers
aren’t allowed to file again for another six years -- plenty of time to squeeze
out lots of high-rate payments.
Mainstream lenders, however, generally will reject consumers with a bankruptcy
on their record -- and bankruptcies are reported for up to 10 years.
One last tip: Once you know the impact on your score, get good objective advice
before filing for bankruptcy. Attorneys may be overly eager for you to file,
while consumer credit counselors may be overly eager that you not. Books such as
Robin Leonard’s “Money Troubles: Legal Strategies to Cope with Your Debts”
offers a more balanced view of the risks and benefits of bankruptcy.
For Your Free Auto Loans Guide, Visit
http://www.CarAndAutoLoans.com.
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