Living With Bankruptcy – How Long Before You Can Buy a Car After Declaring Bankruptcy
Author: Jennifer Quilter
When you’re living with bankruptcy in your past every decision you make becomes a bit more complicated. How long before you can buy a car after declaring bankruptcy? Well, that depends on how on top of improving your situation you are immediately after everything has been finalized. If you are really on top of your finances you can get auto financing within a year.
Shortly after all of the paperwork has been finalized you need to get a copy of your report and look it over for mistakes. Is everything that was supposed to be included marked that way? If things are marked overdue or late you’ll want to contact those companies and ask them to change it. You may have to do this repeatedly–if it’s not taken care of after the first call, or if during the first call the person you are talking to is unhelpful, ask to speak to a manager and also send them something in writing.
This is very important because all of this effort in the first place was about getting rid of these debts, and you don’t want to be both living with bankruptcy and debt in your past.
Once this is done hopefully you are able to get a secured credit card from the bank and use it responsibly, paying it off in full each month. You can use this positive payment history to show your potential lender that you have been trying to improve your situation and are dedicated to building a good credit score now.
After about a year you can start looking at your auto financing options. Your interest rates will still be very high at this point, but on the positive side this will give you the opportunity to build up a history of positive loan payments, further improving your credit score. Make sure you read through the terms and conditions before signing anything to avoid getting into something you’re unprepared for.
When you go to apply explain to the lender, briefly, how you came to have these past problems and why they won’t be an issue now.
While living with bankruptcy things can be a bit more complicated, but not impossible. You have to wait a while before you can buy a car after declaring bankruptcy, but you can use that time to build up your credit and get yourself ready to find a good deal.
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The more you know the better off you’ll be. Learn more about finding loans after bankruptcy and all of your options and things you can do to buy a car after bankruptcy.
If I put all of my student loan debt on a credit card, could I cancel this out by declaring bankruptcy?
I currently owe $45,000 in student loans and I am having a hard time paying them off. The loans are private (sallie mae) and I am not elligible for consolidating them via federal loans since I am not a US citizen. I was not able to get a visa so I had to leave the US. I live in Europe now.
I understand that declaring bankruptcy would not cancel out the student loans, but I have read that bankruptcy could cancel out credit card debt. I have a good credit score (790), so given some time, with an even higher credit score, I may be able to transfer my loans to a few credit cards.
What are the laws regarding credit card debt and bankruptcy? What difference does it make that I am not a US citizen and do not live in the US?
Can you eliminate credit card debt by declaring bankruptcy?
Can an individual eliminate credit card debt by declaring bankruptcy? I didn’t think you could wipe it out, just get the bill collectors off your back. But, someone told me that it depends on which chapter of bankruptcy you use. The right one WILL eliminate credit card debt. I know someone who has $80,000 in credit card debt and they are trying to do that to get rid of that debt! Is it really possible? Are there any restrictions in doing this. Can you ever get a credit card again if you do it?
If you file bankruptcy to eliminate all debt, do you have to give up ALL of your possessions? Will you have anything left?
This is for a friend of mine (really). They don’t own a home. They have 2 cars and some furniture and A 401k plan. Between the two of them they make about $40,000 a year. I don’t see how debt consolidation will help them How could they EVER pay off $80,000!?! They had a house but they used up all the equity in it over the years and sold it recently and broke even on the deal, ending up with NOTHING! What a mess! I just didn’t think they could wipe out their credit card debt! And, it really isn’t fair to the rest of us that pay our bills!
How does declaring Bankruptcy effect my current credit rating?
I know that once you declare bankruptcy you can’t file again for another 7 years, but how does filing affect my overall credit rating? Do already paid off credit cards in my name remain valid or are those accounts closed?
My name is on my girlfriend’s credit cards, she is now declaring bankruptcy, ?
Will I be held liable for the debts on her cards? I never applied for these cards, she just had them issue me cards from her account with my name on them. I have used the cards however.
Is it any worst to just stop paying credit cards vs declaring bankruptcy?
I make too much income (state median income guideline) to qualify for a Chapter 7 bankruptcy, and Chapter 13 will not suffice. Why not just stop paying the credit cards? They can’t arrest me.
To be totally honest with yourself and your creditors you really should file for chapter 13 bankruptcy. In chapter 13 they usually reduce the amount of debit that you have to pay back to a manageable amount and you will have only one monthly payment. If you just ignore and stop paying on the credit cards you not only ruin your credit history, but no one will lend you money for a long time since you would be a thief.
There are a number of factors involved.
A chapter 13 is where you have to pay back some of the debt. How much depends on what your current disposable income is and how much your debts total. There is a fairly complicate formula involved. But this will stop them from filing judgments, garnishments or liens. It freezes interest and late fees. And it protect your property if you own a home or car.
A chapter 7 is called “liquidation” for a reason. You may have to give up most of your property. Therefore, if you have a lot of property along with that 80k in credit card debts, you may have trouble keeping it all.
Also, you must pass a “means test”. This was put into place to prevent someone who has a very good job from filing BK and dodging their debts. If you earn (generally) over $45k a year you will not qualify for Chapter 7. Again..there is a complicated formula to figure this out.
There are a lot of bankruptcy lawyers who have a free consultation. If you think it’s necessary talk your situation over with them.
I would strongly advise you not to go that way. You will carry that mark against you for life. Talk to your student loan creditors and tell them that you are doing it really tough. Most will understand and help you come to a better arrangement that’s suitable to you both. I have been in a similar position to you and I worked out a solution with my creditors. Maybe you could talk to a financial adviser who could show you various options. Good Luck.
you credit rating become ZERO….. and will stay that way well after the bankruptcy is discharged….
The credit card debt becomes part of the bankruptcy.. and the cards get shut down… IMMEDIATELY….
Like AMBY said if your only a authorized user there is nothing they can do if on the other hand your a joint user then you will be responsible for the debt.
Get a copy of your credit report and look under the credit card company’s name on the left side there will either be a “A” or a “J” if it’s an “A” your in the clear if it’s a “J” your stuck.