Life after bankruptcy can leave some people a little lost. They may be able to sleep at night because they now have control over their finances, but many they worry it can happen again. One of the questions our Las Vegas bankruptcy hears often is can I buy a car after bankruptcy? At Luh and Associates, we’re here to give some bankruptcy advice.
What Happens After Bankruptcy?
Can I buy a car after declaring bankruptcy?
When people ask this, they usually mean something else. The real answer they want is how bankruptcy affects their credit score. It’s no secret that bankruptcy negatively affects your credit. Depending on the situation, some credit scores can drop almost 200 points.
It all depends on how long and out of control your debt was. Your credit score drop can be a figurative kick while you’re down. Despite this, yes, you can take out new lines of credits and loans. However, it will come by a steep price: a higher interest rate.
A higher interest rate can make paying off new loans difficult, but if you need a car, it’s sometimes the only option. The plus side is that financing a car is also a great way to rebuild credit after declaring bankruptcy.
Bankruptcy Advice: Ways to improve your credit
If you need other ways to improve your credit after declaring bankruptcy, here are some options:
- Secured Credit Cards
- Apply for an FHA Loan when Applicable
- Pay your existing bill before the due date
Need to Declare Bankruptcy in Las Vegas?
If you’re experiencing the crushing pressure of debt, give it the boot. At Luh and Associates, our Las Vegas bankruptcy attorneys can help get you out of debt. Schedule a free appointment at Luh and Associates today.