Bankruptcy may seem like the end of the world if you need to purchase a new or used car, but it doesn’t have to be.

While lenders are more reluctant, generally, to extend financing to someone with a bankruptcy on his or her credit report, it isn’t always the case, especially if you find a financing company that has a lot of experience working with people with less-than-perfect credit, including bankruptcy.

“If you have recently gone through a bankruptcy and are now finding it difficult to obtain financing for an auto loan, don’t despair,” says, an online lender with more than a decade of experience working with borrowers with poor credit reports. “You won’t have to wait years for the bankruptcy to come off your credit report before you can purchase a vehicle. It is possible to get an auto loan with bankruptcy on your credit report. You just need to know where to look.”

“Lenders lend to people in bankruptcy all the time,” said Edward Boltz, president of the National Association of Consumer Bankruptcy Attorneys in an article on, though interest rates on those loans likely will be higher than borrowers with good credit get.

“The key to buying a car after a bankruptcy, experts say, is to shop around for an auto loan, just as you would if you didn’t have that black mark on your credit report,” writes Susan Ladika in the article, “How to Buy a Car after Bankruptcy” on

Your best option for finding a bankruptcy car loan may be to search online for direct lenders, especially those who specialize in providing auto loans to buyers with poor credit.

Suggestions for improving your chances of financing from the website The Joy of Bankruptcy include:

Re-establishing some sort of credit with a secured credit card or two.
Making sure you can afford the payments so they fit your family’s new budget.
Identifying realistic vehicle choices, which may mean buying a used car instead of a new one.
Saving for a down payment, because the larger it is, the more likely you are going to get a loan.
Keeping your driving record clean to demonstrate your reliability in taking care of the vehicle.
But obtaining a car loan after bankruptcy may be worth all the effort.

“Remember that getting a car loan is one of the best ways to rebuild your credit after bankruptcy,” according to The Joy of Bankruptcy.

So, while bankruptcy may not be joyful, at least you know you probably can get the car you need.

Source:  Mark Macesich