Will I Get a Loan for a Car After Filing for Bankruptcy?

get a car loanFiling for bankruptcy can cause hardship. It will negatively affect your credit and prevent you from getting the kind of financing that you need to live. Life circumstances may compel you to purchase a new or used car soon after your bankruptcy.

If filing bankruptcy ended the garnishment of your wages and other actions that may have reduced your income, then you may be able to save up the cash to purchase a car. But if you are like most people who have filed for bankruptcy, you will need a loan to purchase an expensive item like a car. You should consult with a bankruptcy attorney in Mobile AL before you decide on the matter.

You Can Get a Car Loan After Bankruptcy

There are lending companies that specialize in extending credit to people who have recently filed for bankruptcy. The pervasiveness of debt and credit trouble in the country has given rise to an entire industry dedicated to helping people who are going through tough financial times.

Getting a car loan can help you re-establish your credit. You will have another chance to service a large debt. However, many of the lenders who extend such offers charge extremely high interest rates (as high as 29%). You should be careful about taking out a loan from such a company, and you should speak to a bankruptcy attorney in Mobile AL before you sign anything.

Getting the Advice and Counsel You Need

The Mobile AL Bankruptcy lawyers at Loris Law Firm can help you secure a loan for a car. One important thing to remember is that bankruptcy does not carry the stigma it once did. Although some banks and car dealerships still refuse to extend credit to people who have filed for bankruptcy, there are plenty of mainstream institutions that will not hold it against you. The Mobile AL bankruptcy lawyers at Loris Law Firm can help you find a lender who will charge you a reasonable interest rate for a car loan.