The definition of bankruptcy
Bankruptcy is a legal status that you can choose to take if you’re unable to pay the debts that you owe. When you’re made bankrupt, your non-essential assets and excess income are used to pay your creditors. Bankruptcy should only be a last resort but can help people with large amounts of debt to start fresh. Once declared bankrupt, your details will be on the insolvency register and will be available for any lender to see.
Why it’s hard to get car finance after bankruptcy
Although bankruptcy isn’t permanent, it will remain on your credit file for 6 years. Because of this, you might find it difficult to get car finance if you have been made bankrupt in the past. Bankruptcy has a negative impact on your credit score and may deter mainstream lenders from considering your application. Lenders will be concerned that you may not be able to make your repayments on time and reject your application. Fortunately, there are lenders who can help you get car finance after bankruptcy.
Bad credit car finance specialists
Red Potato specialises in providing bad credit car finance for those previously discharged from bankruptcy. We base our lending decisions on your current financial circumstances and your ability to repay. By looking at your recent payment history, we can get a better idea of how you currently manage your finances and make a decision on what is affordable for you.
Apply for car finance after bankruptcy
When you apply for car finance after bankruptcy, you may need to get more information together than you would for a prime rate application. At Red Potato, how it works is easy, you make your application and if you meet our requirements we will consider you for car finance.