Bankruptcy Auto Loan BC
There is a growing number of British Columbian needing a bankruptcy auto loan. These are applicants who need a vehicle while either still in bankruptcy or discharged. Not only are they in need of a vehicle, they are also looking to re-establish their credit as soon as possible. People who have filed for bankruptcy can qualify for an auto loan. Ideally, waiting until you are discharged would be preferred however, you can get approved for an auto loan three months into the bankruptcy as long as the monthly obligations to the trustee are being met. In this situation, the lender’s look for strong work stability in length of employment, income, and previous credit history pattern.
Bankruptcy Auto Loan
There are three major reason’s that cause Canadians to file for bankruptcy. The first is job loss or reduced income. The second reason is divorce or marriage separation. As a couple, there are shared debts with usually 2 incomes however, when a couple enters into a divorce, each now have to pay fully for their own living expenses on top of their previously shared commitments. This increases your debt service ratio which is your level of income to level of debt. The third reason is medical illness. The inability to stay employed due to injury or illness. Even those who receive medical insurance will often only receive a portion of their wages. The average time for bankruptcy before receiving a discharge is 9 months.
Bankruptcy Auto Loan and Consumer Proposal
A Consumer Proposal is the alternative to a bankruptcy. It is a contract that is negotiated by a consumer proposal administrator on your behalf, to re-pay the unsecured debt owing. It is an easy way to repaying your creditors. You only re-pay a portion of the full amount and the creditor’s will agree to right off the rest of your debt. It is an alternative to keeping your assets and can settle your debt through a monthly payment. The length of the proposal is usually 5 years. One can qualify for a bad credit auto loan six months into a consumer proposal so long as monthly obligations to the administrator are being met.These are two options for those whose debt are unmanageable.