Saturday, April 28, 2012

Bankruptcy And How To Purchase A Car If You're Still In It

Bankruptcy! It's a negative word that is charged with a lot of adverse emotions and carries a defeatist attitude.

And, it's even worse if you find yourself needing a car after filing bankruptcy.

Contrary to a lot of information available on the Internet, you can purchase a new car while in bankruptcy.

There are some new car dealerships that have programs to get you into a brand new vehicle.

I don't suggest that this will be an easy task by any means. The first thing that you will need to do is to discuss this with your attorney. If he feels it is a good idea and advises you to go for a brand new vehicle you will need the help of your bankruptcy trustee.

A bankruptcy trustee is someone who is appointed to your particular bankruptcy case once it reaches the judicial court system. This is the person that draws up an estate which depicts all your debts along with a list of your total assets.

This estate gives a true picture of your financial portfolio. Your attorney and the trustee use this estate to help direct you on how to move forward from the bankruptcy by improving your future borrowing abilities.

If together your bankruptcy attorney and the estate trustee feel it is a wise decision to find a program that will get you into a brand new vehicle, you are ready for the next step.

In order to obtain a new car, you must have a letter of permission from your bankruptcy trustee. This letter will be filed with your legal bankruptcy portfolio for the judge to review.

In addition, a copy of this letter of permission will be presented to the salesperson and then sent on to the bank who borrows you the money for the car loan. Now you are ready to begin looking for a dealership who will grant a program for a new car purchase while in bankruptcy.

Most dealerships do not offer programs for those in bankruptcy so you may have to search extensively before you find one that can help you.

Before You Proceed Any Further - Stop And Ask Yourself If A New Car Is A Wise Choice

Under the circumstances, I feel I would be careless not to ask you to pause and ask yourself a question. Do you really need a brand new vehicle? Since you are experiencing a bankruptcy to help clear up extensive debt, there may be a better option available.

This option would be to buy a quality used car while in bankruptcy. This could have great advantages to you and your pocket book, as well as your new monthly budget.

The first and biggest disadvantage is the depreciation that happens with a brand new vehicle. Everyone knows that a new car drops in depreciation like a rock as soon as you drive it off the dealer's lot. With most new cars you lose anywhere from 3 to 50 percent depending on the make and model of vehicle you buy.

New car bankruptcy programs can cost you more money too.

Take A Look At These Reasons For Buying A Used Vehicle Before You Decide That A New Car Is Your Only Answer - You May Be Surprised At The Savings

A used car can literally save you thousands over a brand new vehicle.

This leads to the next advantage of a used car, which is lower monthly payments. Lower monthly payments will allow you to responsibly pay the loan back on time which will improve your credit score after bankruptcy.

The Bottom Line Is...

...there are more programs available for those going through bankruptcy for quality used vehicles than there are new ones. You will have an easier time finding financing for a used vehicle and this will save you unnecessary headaches while you are going through the process of bankruptcy.

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