After losing a job or having filed for bankruptcy, it is hardly possible to get a loan. It looks even more complicated with a car loan during bankruptcy.
Private bankruptcy is open to all consumers and requires a lot of discipline from the insolvent private individual. The bankruptcy procedure lasts six years, during which the debtor has to prove himself. During this time, all income above the attachable limit is divided among the creditors. The goal is to be completely debt-free after the end of bankruptcy. The problem is that the garnishment limit is set by law so that hardly any money is available to pay off loan installments. On the one hand, this should protect the debtor from taking on further debts, on the other hand, as many creditors as possible should be satisfied.
The temptation is great to be presented with a real loan shark. He grants the loan without asking many questions and without worrying about bankruptcy or unemployment. Credit Bureau and Co. don’t care either. However, this is definitely not a good idea! Because even if the loan is granted, the interest is too high, the monthly installments too expensive and the bone breakers are already ready and waiting for the first unpaid installment.
It doesn’t always have to be a loan
If you are dependent on a car and urgently need to buy one, you are welcome to consider taking out a loan. However, getting a car loan during bankruptcy is not as easy as some lenders present.
For this reason, every potential borrower should carefully consider whether it really has to be a loan. If only small sums of up to 1000 USD are required to buy a car, a request from the relatives can often be worthwhile. The family is happy to help, especially when it is really urgent and a used car is sufficient. Only when the money cannot be raised through the relatives should a loan be considered.
A hope for the unemployed and social assistance recipients
Anyone who urgently needs a car loan during bankruptcy will hardly get the idea of turning to the employment agency or the social welfare office for help. In bankruptcy, however, this is one of the easiest ways to get a car loan. If you can conclusively prove that a car is urgently needed and that using public transport is not only disproportionately more work, but also more expensive, you can be lucky with the office and get a dedicated car loan. This is interest-free in the event of unemployment and is repaid with 10 percent of the monthly standard benefit.
Car loan during bankruptcy through credit marketplaces
Another way to get a car loan during bankruptcy is through the effort of a credit marketplace. Providers like Best bank or Nice Bank mediate between borrowers and lenders. The potential borrower is given the opportunity to present his situation in a credible manner and to explain why a car loan is urgently needed during bankruptcy. With good Credit Bureau and Infoscore information, which certify a creditworthiness, the brokering of a loan is not unlikely.
If everything’s falling apart
If all else fails, neither the relatives, the employment agency or the credit marketplaces help, taking out a microcredit from private individuals is worthwhile. They include both small sums and several thousand USD. It should also be noted here that the Credit Bureau and the Infoscore must be clean. If this is not the case, the way to a loan through a guarantor can bring the desired success.
With his name, this guarantees that the borrower will step in in an emergency. This applies to both insolvency and delay or failure to pay. If the borrower does not have a good credit rating, a loan can still be arranged if the guarantor provides excellent information.