Financing a Car After Bankruptcy - Five Things to Consider
Is Financing a Car After Bankruptcy an Option?
As a Utah bankruptcy attorney, I often have clients who are contemplating bankruptcy that want to know whether they can purchase a vehicle after filing bankruptcy. This question is asked by individuals and couples looking for advice from a Chapter 7 bankruptcy Utah lawyer as well as a Chapter 13 bankruptcy Utah lawyer. I talked with Darryl Pettersen at the Larry Miller Group about ways people can get auto financing after their bankruptcy has closed. He told me 5 factors that affect financing a vehicle after bankruptcy:
- Provide verifiable proof of income
- Earn sufficient income–$1,800 is good, more is better
- Down payment is necessary—20% is good, more is better
- Length of employment is important—one year is good, longer is better
- Length of residency is important—one year is good, longer is better
Darryl also said that it is important to manage expectations. Depending on your income, typically you can get financed in a car that sells between $10,000 and $20,000. The car must be no more than 4 years old and have no more than 70,000 miles. Usually, the make of car is not important to the financial institutions, but more likely American built cars meet the above criteria because they are less expensive than Japanese cars.
Contact a Utah Bankruptcy Attorney about Financing a Car After Bankruptcy
If you are interested in talking with a lawyer in Utah or have questions about filing bankruptcy and the effects of financing a car after bankruptcy, call the law office of Pearson, Butler & Carson at (800) 265-2314 for a free consultation.