Frequently Asked Questions
How long do you have to wait to buy a car after Chapter 7?
Getting a car loan after bankruptcy in Halifax, Nova Scotia, is not difficult. However, that being said, Chapter 7 bankruptcy can take anywhere between four to nine months to complete and receive your discharge papers. The majority of lenders usually want the process completed before they accept an application.
Should I buy a car before or after bankruptcy?
In most cases, it is safer to purchase a vehicle after you've filed for bankruptcy because it may be difficult to protect your assets once you have filed. It's best to receive bankruptcy discharge papers before acquiring your next vehicle.
How soon will my credit score improve after bankruptcy?
Typically, it will take approximately six months to see an improvement in your credit score. One of the best ways to slowly increase your credit score is to re-apply for a credit card, spend responsibly, and pay off your full balance at the end of each month. This will help increase your overall score even during the six months after you've received your discharge papers. A poor credit score doesn't mean you won't be able to get financing that it may take some more time.
Will my credit score increase after a bankruptcy discharge?
Unfortunately not. A credit score will only increase after bankruptcy if you are regularly paying debts. This will help to improve it.
How long does it take to recover from bankruptcy?3>
This question is a bit tricky and has more than one aspect to consider. Someone filing for bankruptcy for the first time and has a modest income can expect it to last up to nine months (discharged). The second part of this question impacts how long bankruptcy lasts on your credit score. A completed bankruptcy will appear on your credit score for approximately six years. However, if you have been bankrupt more than once, it may be reported up to 14 years. A bankruptcy is a path to a fresh start, a new beginning. It is not meant to affect you forever; however, it is best to control spending as failing to deal with your debts may last a lifetime.
Getting a Car Loan After Bankruptcy in Halifax, Nova Scotia
Now that you feel more confident and informed about your options, we encourage you to visit our online finance centre or complete our credit application. With access to Canada's largest lenders, you're only minutes away from your car loan. As always, if you have any questions or require further assistance, be sure to contact us and our expert financing specialists will happily assist you.