Filing for bankruptcy is a difficult decision. You may be wondering whether you can take out a car on finance to make it easier. Getting approved for a car loan after these bad circumstances occur may seem impossible. You start to worry about losing your home and your car, amongst many other personal belongings.
It can be difficult to get back on your feet if lenders are not open to help. Being recently bankrupt is detrimental to your credit score which can affect you for a considerable time – up to ten years. Many car lenders will not consider your request for a car finance plan, when there is a black mark against your name.
To make matter worse, the ownership of your current vehicle will likely be affected whether it is on finance or not.
However, many people have lost their jobs this year and it has been difficult for some of us to pay our bills. But there are ways to stay on the road, and the following points should help guide you on how to continue to drive after bankruptcy and get you out of a dark hole.
The type of bankruptcy you file for and the amount of time you leave it before applying for car finance impact the likelihood of acceptance. The main types are Chapter 7 and Chapter 13.
When your bankruptcy is Chapter 7, it can take up to five months to complete. Some of your belongings can be liquidated to repay debts, and others may be released. Since your vehicle is potentially a valuable asset, creditors may liquidate your car to collect your debt.
This type of bankruptcy is also known as a wage earner’s plan. You plan to repay your debt within five years at a fixed amount weekly of fortnightly. These tend to affect your credit score for a shorter period, and it is unlikely your car will be repossessed.
There is a possibility that you can get accepted for a car on finance when you become bankrupt with Chapter 7. We understand that despite a bad credit score, everyone needs a car, and most people will be able to pay for one eventually.
At Euphoria Finance, we have a sympathetic team who are happy to speak to you and tailor a finance plan that suits you. We assess each case individually and can take your personal situation into consideration unlike other lenders with fixed criteria.
Some lenders will disadvantage customers who have been made bankrupt with their monthly repayments. The huge interest rates they charge can be much higher than the value of the care and make your financial position worse. We are transparent and flexible so that you can get back on your feet.
Once approved we have over 50,000 used cars available for you to choose from, with thousands of cars in hundreds of makes and models, including:
If you have a rough idea of your budget and a few car makes that you like, chat to us and we will agree on the right deal with your stressful circumstances. We try and make it as hassle-free as possible.
We understand that people experience bankruptcy for many reasons, some are not even their fault. A bad credit score doesn’t have to prevent you from financing a car and driving thanks to our bad credit car finance offer. You can borrow from £3,000 to £25,000. Subject to status, loans £25k+ are possible too.
We can get you approved super quickly because we are a direct lender, not a broker. If you have become bankrupt or are being rejected by other lenders, get in touch with us at Euphoria Finance today.