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Recovery from bankruptcy can be both challenging and complicated, but it is possible. There are many options for home financing and bankruptcy auto loans in St. Peters .
Since bankruptcy is one factor that dealers consider when looking at you as a credit risk, it pays to know where you stand in advance of your auto loan application. Realize that it is likely that you will pay a higher interest rate than someone with a good credit rating and that you will be required to front a larger down payment – usually about 10% of the car price.
A Chapter 7 bankruptcy accounts for about 70% of all bankruptcies. In this type of situation, debts are cancelled and the bankruptcy remains on your record for up to 10 years. For Chapter 13 bankruptcies, you pay all or a portion of your debt but the process time takes about 5 years. It stays on your credit report for 7 years.
There are some steps you can take to ensure that you not only get a reliable used car, but also pay a fair price and secure affordable financing. Shop around the various dealerships in the St. Louis area for a dependable auto and for a competitive interest rate. Know your budget and do not necessarily spend it all. Buying a used vehicle after bankruptcy is not a hopeless endeavor but it is in your best interest to do your homework. Remember that it is also an opportunity to rebuild your credit with car loan .
Call 5 Star Auto Plaza at (636)940-7600 for premium used cars and bankruptcy auto loans in St. Peters .
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