If I file for bankruptcy, how can I go about getting a used car? That is, if bankruptcy can clear the debt I owe with my current car note. Am I able to refinance or get approved for another loan if I’m looking to trade-in my car with a negative turn-over balance? I was thinking about turning in my car for a newer used vehicle because I cannot make the current payments seeing that I owe the auto company all this back pay. Please help.
Dear Miss M,
If you trade your car in and roll the debt into a new loan you will be way upside down in the new loan. It is not something that I would recommend.
If you need to go bankrupt then do that. There are plenty of “Buy Here, Pay Here” dealers that will sell you a beater car and take payments from you. Once you get your credit back in shape you can go any by a new or used car again.