Car Loans after Bankruptcy in Ontario
I think that we can all agree that filing for bankruptcy is not great for your financial situation, especially the aftermath, but the question is: will you still be able to finance car loans after bankruptcy in Ontario? We'll explain.
What Is Bankruptcy?
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.

Source: MNP LTD
Financing Car Loans after Bankruptcy in Ontario
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.
How Long Until you Can get Car Loans after Bankruptcy in Ontario?
Time is also an important thing to consider, for one if you're trying to apply for a loan while the Bankruptcy filing is still underway that isn’t going to work out well for you. You want to put some serious distance between your bankruptcy filing and applying for a loan. 9 months to a year minimum.

Source: TheCarConnection.com
Progress will be painfully slow but you can use this time to try and rebuild your credit. Making credit card purchases regularly and paying them off on time will slowly but surely start to rebuild your credit score. Bankruptcy will still look bad, but at least a rebuilt credit score shows you can still be reliable.
We’d love to help you find options for car loans after bankruptcy in Ontario. Simply fill in the form below and we’ll get back to you ASAP!
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