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After-Bankruptcy Programs at Car Dealerships

Dec. 6, 2022

As a St. Louis bankruptcy attorney with many years of experience in assisting people just like you with this major life change, I can tell you that when it comes to automotive dealers, they will target you like crazy after filing for Chapter 7 or 13!

Your life after bankruptcy will include a lot of things that you probably didn’t know about before you filed, and this is just one of them you'll want to look out for if you truly want your post-bankruptcy financial situation to be much better than it was before.

The Many Auto Loan Offers After a Bankruptcy 

If you are the type of person who generally sees car salesmen as sly, slick manipulators who will do any and everything to sell you a vehicle, then this time, you are right, especially when talking about how diligently they seek out people who've recently filed for bankruptcy. This is why you get so many "after-bankruptcy program" letters in the mail from the car dealerships in your area following your filing.

Debt.org points out clearly how, although so many other things will be super hard to get a loan for, a car probably won’t be one of them. Still, according to Capital One, it is important to remember that although it may not be difficult to get a car after bankruptcy, you still need to get permission from the Courts if you are in a Chapter 13 repayment plan.  Permission is not necessary in a Chapter 7.

Bankruptcy Mailers for Car Dealerships

There are many dealerships out there that have a whole game plan set up in trying to find folks like you who’ve just had a bankruptcy tacked onto their credit report. What they do is pay companies that are called “bankruptcy mailers'' to seek out the personal information of people in a certain area who just filed Chapter 7 or 13. And, it’s not hard at all for these mailers to collect your info, being that your bankruptcy is public information.

There are lists of companies that sell your personal info to dealerships. And, what ends up happening next is a huge mind game where the car dealership will try to make you feel special, being that they make it seem like a program that's "created especially and only for people like you."

This is why it is important to be selective if you are looking to get a new vehicle after bankruptcy.  You will want to try to avoid vehicles with high mileage or vehicles with previous accidents.  The interest rate is another major consideration. As your bankruptcy attorney, I am committed to answering your questions and help direct you to the best path forward in your particular situation.

Contact Your Local St. Louis Bankruptcy Attorney

If you have any questions about the before and after of filing for bankruptcy, then please don’t hesitate to contact us today at AKS Law by dialing 314.740-2989.