How to obtain a car loan during bankruptcy
Many people think they’re not eligible for a new car loan because they’re under bankruptcy.
Actually, it’s a fake rumour. If it is your first-time declaring bankruptcy or consumer proposals, there is many financing programs in 2nd chance to credit that can fit your situation.
Example, the moment you signed your bankruptcy/consumer proposal agreement, we have brokers that can authorize you a new loan with an interest rate between 10.99% - 13.99%. On the other hand, the bankruptcy/consumer proposal amount must be over 10 000$.
There are also other brokers that will ask a waiting period, or a delay, between the signature and the new loan. If it’s a bankruptcy, they will ask for 3 months. If it’s a consumer proposal, they will require at least 6 months. At this moment, you’ll be eligible for interest rates between 12.99% to 21.99%.
Obviously, there are other factors that can negatively influence the decision or the interest rate. Especially if the bankruptcy or the consumer proposal includes a vehicle or if the vehicle represents more than 50% of the event valour.
Once again, to take the right decision, you must bring together as much information as possible before signing anything. Whether it’s with a syndic or with a loan company.
Our team can answer your questions and analyze your credit file for free.
Katy Fontaine - August 30th, 2018