File Bankruptcy and get a new car. Heard it before haven’t you? Doesn’t even sound right, does it? Even worse, you’ve heard about, or you have seen other people who file bankruptcy, and the next thing you know they are tooling around town in a brand new car. How can all this be? They are bankrupt.
Many people who come to me have real car troubles. They are:
- Upside down in a car they are buying
- Over the miles on the lease
- Have a damaged lease car
- Can’t afford high car loan payments or high auto lease payments
- Owe money on a car they can afford but it’s dying
When you file bankruptcy this is a golden opportunity to give your car back to the lender or lease company. They get the collateral for the loan or lease and you no longer owe them a dime. A common question from many of my clients is, “I am bankrupt, who will sell me a new car?”
Car loans have always been the first refuge for people in bankruptcy needing to rebuild credit, or to get new transportation. It is a marriage made in heaven. You need a new car. They have new cars to sell. They know that you can’t file another chapter 7 bankruptcy for 8 years. The keys is when, how much, and interest rate?
Where can I buy a new car after I file bankruptcy?
Almost anywhere. However, most car dealers will not sell you a vehicle until after you have gotten your discharge from the bankruptcy court. This really shows their lack of understanding of the process. The estate is created at the moment of filing the chapter 7 case. Any loans you get after the bankruptcy petition filing date aren’t included.
I have a contacts who can get you into a new car as soon as the meeting of creditors is over. That is a full 60 days before anyone else. You can call Mike Gentry or his partner, Darwin Nealon at Motorcars Toyota in Cleveland Heights. Mike and Darwin have developed a business selling to people in your shoes. They have great success getting people just like you into a new car with reasonable interest and payments. Mike still lives in Elyria, Darwin used to. Not so far to go for what you need.
Picture by the commons at Flickr.
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