Bankruptcies are becoming ever more prevalent in these increasingly trying economic times. Last year, more than 100,000 individuals filed for personal bankruptcy in Canada and this number is sure to increase this year. Filing bankruptcy is often times the last resort for people who are in distress with creditors, struggling with credit card payments, in danger of defaulting on an auto loan or in some extreme cases losing their home. If used wisely, bankruptcy can help struggling consumers attain a fresh financial start.
When an individual is ready to file for bankruptcy, they must attain the services of a trustee. There are numerous trustee offices within Canada that can help with this process. The trustee will notify all creditors of your filing. In most cases, first time bankrupts are held for nine months. Once the nine month period is up, the individual is discharged and absolved of all debts. If an individual has an auto loan, they sometimes have the option of maintaining it outside of the bankruptcy or absolving that debt. If they choose to absolve their debt, they will need to return the vehicle to the auto lender.
Once an individual is discharged from bankruptcy, it will report on their credit bureau for up to seven years, which will hinder their ability to receive traditional loans through prime banks and auto finance companies. Most prime banks and auto lenders deem individuals with a bankruptcy as an extremely risky client and will very rarely be able to offer any sort of auto loan, lines of credit or mortgage without some sort of re-established credit.
The good news is that there are a few different finance companies out there that will give individuals who are just getting out of a bankruptcy a chance. Their financial products range from secured credit cards, vehicle loans and even mortgages! Some companies will even finance a vehicle loan while you are still in a bankruptcy. Having this sort of re-established credit, especially an auto loan after a bankruptcy will prove invaluable for long term credit needs and help these individuals on the road back to financial well being. Sometimes just one well paid auto loan can change the way regular banks and auto finance companies look at you and your credit history. So if you’re discharged from a bankruptcy or even still inside your bankruptcy, your opportunities to start fresh are greater than you think!
The most important step to repairing post bankruptcy credit is to show creditors that your bankruptcy was the clean slate you needed. A major challenge you face in or out of bankruptcy is finding a lender that will approve the loan you need to start over. Thankfully Car Credit Hero has the experience and knowledge to get bankrupt and discharged bankruptcy auto loans approved.
No matter what yoursituation is Car Credit Hero can get you Pre-approved on a vehicle loan today. Apply Now and our auto loan experts can have you driving in no time!