For many people, one of the primary concerns in filing for bankruptcy is the effect that the filing will have on their ability to obtain credit. Bankruptcy will affect your credit score and your ability to qualify for certain types of credit. In this blog post, we discuss the effect bankruptcy will have on obtaining credit.
Purchasing a Vehicle After or During Bankruptcy
Many people question whether they will be able to buy a car during or after bankruptcy. The answer is yes, you should be able to obtain a vehicle while in bankruptcy. The requirements for doing so will vary depending on the area of the county where your bankruptcy has been filed. In Tarrant County you must submit a motion requesting approval for the credit with the bankruptcy court. These requests are generally allowed as long as you are current on your trustee payments; you are able to demonstrate in your budget that you have the ability to make the payments on the vehicle as well as your other monthly expenses; and you are seeking to purchase a vehicle for a reasonable price. More extravagant purchases are allowed while in bankruptcy, but you would need to show a need for the purchase. (An example of this would be a vehicle that has to be specially equipped with ramps or other features for a family member with a disability.)