Bankruptcy is an ugly thing. Just the word alone makes people shutter. Even in this economy, as that word gets flung around left and right, people still have a lot of misunderstandings concerning it. One of those places where people have confusion about it is when it comes to acquiring an auto loan even after having a bankruptcy occur.
Auto Credit Express shows how bankruptcy can affect an application for an auto loan. When the two common types of bankruptcy, a Chapter 7 or a Chapter 13, are completed, it ends with either a discharge or dismissed.
Having the bankruptcy dismissed is what leads to problems. This is common during a Chapter 13. Dismissal means that the court-ordered payment schedule wasn’t met. You missed a payment and this will lead to a lender or any kind of loan, auto-loan included, being denied.
On the other hand, a discharge on the bankruptcy means that it was completed successfully. This is what allows a person to properly start reestablishing credit afterwards.
Now that you’ve entered the healing portion of the process, a good question is what to do afterwards. The most obvious answer is to start mending your credit. A great way of doing is by looking for different types of credit, such as an auto loan. This is a form of installment credit that can go a long way in aiding you get back on the right track.
For more help in getting an auto loan, contact us at Bayside Chrysler Jeep Dodge and we’ll work with you to find the appropriate car to suit your life-style. We operate in the Queens area and help all those in New York drive away in the car they need. We love to say yes! Like our Facebook page and follow us on Twitter for more news and monthly specials.
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