Car Loans after Bankruptcy in Ontario

You’ve probably heard the term “Bankruptcy” before but it’s possible you don’t actually know what it means, let’s start by getting our definitions clear. Filing for Bankruptcy is basically saying to a debtor that you cannot repay the debt, the debtor still needs to be reimbursed however so you will have to pay with your assets instead.

This could be by liquifying some assets like second homes, or it could be by selling stocks and bonds. Or in extreme measures it could mean repossessing your belongings. Once it’s done however the debt is clear and you theoretically start on a clean slate, however it wouldn’t shock you to hear that most lenders aren’t overly inclined to a car loan after bankruptcy in Ontario.

If you are applying for a loan after bankruptcy here are a few things to be prepared for:

They will demand to know every single detail of your financial situation both before and after the incident and the exact situation which led to your filing for bankruptcy, if they don’t like your answers they may not grant the loan, and even if they do there will be a serious premium on it.

Bankruptcy and Low Credit score generally go hand in hand, so your only real option for loans will most likely be lenders who specialize in Poor Credit score loans. Like us! We don't discriminate and would love to help you find your next car loan in Southern Ontario.

The total amount you can take out will be severely limited, you will be able to take out a loan for a car but you will not be able to qualify for anything especially fancy.