Car loans after bankruptcy are available to persons who have gone through bankruptcy, with all of the financial restrictions that implies, and find themselves in need of transportation. Creditors require that the bankruptcy be discharged before they consider lending money. The borrower must be earning $1,500.00 (gross) monthly if the credit score is under 625, to be eligible, and there cannot have been any repossessions in the previous year. People seeking car loans after bankruptcy must be Canadian residents, at least 18 years of age. A down payment is sometimes required when applying because the amount financed is often restricted to eight times the buyer’s monthly income. For someone earning $1,500.00 per month, the loan limit would be $12,000.00, which severely limits the buyer’s choices.


Another stipulation of some of the lenders is that the monthly payments should not exceed 20% of the monthly income. All these restrictions are designed to help the borrower keep from falling into an unmanageable debt situation when getting a car loan after bankruptcy, while protecting the lender as well. It is important to note that interest rates can vary widely, depending on credit risk, vehicle selection, and the equity position of the loan. When seeking car loans after bankruptcy from one of the online brokers, they will require the buyer to go through one of their authorized dealers.

For buyers who also have a website, there is an opportunity offered by some brokers to be an affiliate, carrying ads for car loans on their personal website. This presents an opportunity to make money from sales that are made through their affiliation, which can help pay off the car loan after bankruptcy. Since bankruptcies can be prompted by events out of the debtor’s control such as unexpected job loss, illness or accident, or natural disaster, companies providing money are actually helping the debtor get back on his feet while helping their own bottom line. While bankruptcies remain on the debtor’s credit record for ten years, it should not keep someone from acquiring necessary transportation through a car loan after bankruptcy.