Is Leasing Possible After Bankruptcy?
Can You Lease a Car After Bankruptcy?
Buying a vehicle should never be an impulse decision. A poorly timed large purchase can put a person’s financial house into chaos. All of those potential problems are infinitely magnified if a buyer is already in a tough fiscal situation. Leasing has become more popular in the last several years; and it’s a great option for the right person. However, if you’re wondering if you can lease a car after declaring bankruptcy, the answer isn’t always very clear. The finance experts at Davey Auto Sales put together some helpful information for those looking for affordable vehicle options. Let’s take a closer look at what they found for you.
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How Long After Bankruptcy Can You Lease a Car?
There really isn’t a hard and fast rule for how long after declaring bankruptcy a person can be eligible to lease a new vehicle. It will depend on the exact circumstances of the bankruptcy and how the debts were either discharged or eventually paid off. However, a bankruptcy will show up on a credit report for five to seven years.
The best way to make sure you’re in a position to lease as soon as possible after declaring bankruptcy is to pay off as much outstanding debt as possible and make sure no active accounts aren’t current.
Can You Lose a Leased Car in Bankruptcy?
Choosing to go through bankruptcy is no small feat. However, what happens if you’re currently leasing a vehicle while going through bankruptcy? You can choose to give the vehicle back, and the remaining debt becomes unsecured and may be discharged. On the other hand, if you clear enough off your plate, you may be able to afford the lease payments and keep the vehicle. You won’t lose the vehicle simply by filing for bankruptcy.
Leasing with a recent or unresolved bankruptcy is certainly an uphill battle. However, financing may still be a viable option. The team at Davey Auto Sales has a lot of experience working with people in all kinds of financial situations. Make an appointment with us today.