What is the realistic time frame you can get a car loan after filing for bankruptcy? my friend said it took about a month but I heard its 3-6 months.

My father in law filed chapter 7 and 2 weeks later he was able to get a cheaper car loan. The reasoning behind it was that most car loans are 5-6 years long and now he cannot file chapter 7 again for 8 years. So they assume they got him...Not too sure how high of an interest rate he got though. I'd definitely check around.

Depends on which type of loan you go through... there are ALWAYS Car sales lots that will give anyone and their DOG a car loan, it means though that if they are Ready to give you a car loan right after a bankruptcy... you will be paying through the nose and may die of old age before the car gets paiid off. Also if you are looking for a car, save a little for a downpayment while continuing to make the payments to creditors... find someone who you trust and who trusts you implicity and get them to co sign on the loan. Yes you are putting their credit at risk if you do this so you must be financially ABLE to make all payments on time.

G'day Anonymous,

Thank you for your question.

A realistic time frame would be several years. If you are declared bankrupt, you have to pay off the debt you owe to your creditors from your property before you get discharged. Your credit rating will be so low that no reputable lender will give you a loan for a while. It will be on your credit record for at least 10 years. You might be able to get a loan to restore your credit but be careful of the conditions.

Regards

Wikipedia Bankruptcy
http://en.wikipedia.org/wiki/Bankruptcy#Bankruptcy_in_the_United_States
Bankruptcy Law
http://www.law.cornell.edu/wex/index.php/Bankruptcy
What to expect when you file for bankruptcy
http://ezinearticles.com/?Bankruptcy:-What-To-Expect-If-You-File-For-Bankruptcy&id=50128

All the lender cares about is whether you can pay the loan back or not. If you have a good job, and can show that you can make your payments on time, a car dealer or lender will lend you the money.

Since they will be taking a risk, because of your past issues, they will charge a higher interest rate, and it will take longer to pay it off, but there is no time limit after a bankruptcy to get a new loan.

Many large loan companies have policies that show a time limit after bankruptcy, but private lenders are more flexible.