After Bankruptcy or asking for a refinancing using a bad credit status or despite if bankruptcy have became easier than before.
1. You might want to hold back till for at least few months after filing your bankruptcy or perhaps after your bankruptcy is laid off, clearing off all the necessary out-standing debts before applying for a refinancing. Seek relevant advice from the professional like the bankruptcy specialist or credit officer in cases like this.
2. In cases where you could hardly wait any longer but have to get the refinance done sooner as an alternative to waiting to get your debts cleared off first as well as your bankruptcy to be cleared, you have no other choice but to proceed with what you can for the mean time and seek the best from what you can obtain along with your bankruptcy status.
3. Get to learn the retail value of your automobile in the trade in marketplace now, and also find out what exactly is the outstanding amount which you still owe for the car. If the difference of such two values after getting the particular retail value to minus off of the out-standing debt is more than zero, then good new! You do have a positive equity for this deal and at least you are not in an upside-down position.
4. Next, spend some time in search of a good Auto lender that is willing and specialize in offering loans to those that have bankruptcy records. Do not simply accept any offer that has granted to you as many of the lenders out there might in excess of inflate the refinancing rate just to exploit your credit positioning. They may do so as they doubt you will be able to get any other offer elsewhere since you also pose a higher risk to any lenders. However please do not fall for this even if you are in a bad credit history position, for do not default over a new loan which is told her i would you without good consideration.
5. Usually, any lenders will only offer refinancing for about a maximum of 110% only. If you need to have a refinancing loan at 120% because of the negative equity you are at present in, then you need to top the difference, which in this situation, is the additional 10% to get the whole deal locked down.
6. However there is one key thing which you need to bear in mind is that you are necessary to pay a higher late payment fee or exists a higher loan interest rate due to your bad credit score (which was affected by your bankruptcy) by almost all of the loan lenders out there.
7. A number of the lenders may ask you for most collateral on your refinancing loan like a house or a car because of the high insecurities they are placing themselves in here. The purpose is to be certain the lender is secured with the loan even if you default for the outstanding loan payment one day.