Bankruptcy Car Finance

Is bankruptcy car financing possible? With us, it is!

As the last resort for clearing unsecured debt, bankruptcy can have a negative impact on your finances. It will also be visible on your credit file for a few years. This makes things a little more difficult, especially when applying for car finance.

But it’s by no means the end of the road!

At We Finance Any Car, we recognise that there can be lots of different reasons for declaring bankruptcy. You may have experienced a sudden job loss or an unexpected illness. You might have even had a dodgy business partner…

Whatever your situation, having a bankruptcy in your past shouldn’t prevent you from securing a much-needed car.

That’s why we offer specialist bad credit car finance.

Unlike mainstream lenders who may be quick to dismiss your application, our experienced panel takes a more understanding approach. This means that your chances of approval are much higher with us.

What you can expect:

Specialist lending panel
Affordable payment plans
Flexibility
Soft credit search
Expert-led service
Car finance you can trust

Apply today and explore your car finance options after bankruptcy.

Bankruptcy car financing - we're here for you

Bankruptcy is a serious issue that can affect many areas of your life, including the ability to buy a car. For many, this financial hurdle can be challenging to overcome. It’s stressful, it’s disheartening, and it can seriously impact your day-to-day life.

We get it.

Although daunting, there are still ways to successfully finance a car. One of which is through our simple application process.

Here at We Finance Any Car, we have a variety of car finance options for a variety of circumstances. And because our lenders have plenty of experience in bad or no credit applications, we are able to offer manageable and affordable solutions.

From defaulted loans to more extreme cases of bankruptcy, we’ve helped applicants from all backgrounds find suitable car finance deals.

So, you’ve certainly come to the right place…

What happens next?

Apply with us
Undergo a couple of credit checks
Review a range of tailored finance deals
Select the right fit for you

Once you’ve submitted an application, you will be subject to a soft credit check.

Sounds a bit scary, but it’s less invasive than the traditional approach and won’t harm your score. This will give the lender a better understanding of your financial history.

If you are deemed eligible, you will then undergo a more thorough credit check, known as a hard search. This second step is essential as it provides a detailed picture of your current position, helping the lender determine how likely you are to meet the monthly deadlines.

This 2-step process is designed with you in mind.

We want each of our applicants to be set up for success. And if you have been forced to file for bankruptcy in the past, it’s even more important to ensure you can repay the loan. Falling into further debt can have serious consequences, making it even more difficult to rebuild your credit.

Accessible car finance, support every step of the way.

Check your eligibility with We Finance Any Car.

Choosing the right car after bankruptcy

Coming out of bankruptcy can mean a fresh start, for you and your finances. And becoming the owner of a new car is a big part of this journey. But it’s not always that straightforward.

If you have previously filed for bankruptcy, your credit score will likely be low. To improve your chances, it’s important to choose a car that fits your budget and meets the lender’s requirements.

If you aren’t in a position to buy a car outright, your next viable option is to find a bad credit financing agreement.

Here are a few things to consider and how we can help:

Set a reasonable monthly budget – you can use our free finance calculator to help
Don’t limit your options – we have a range of makes and models to explore
Prioritise reliability to avoid costly repairs – we partner with FCA-authorised car dealerships
Consider buying a used car – we offer affordable finance options for used cars
Check insurance rates – our team will go above and beyond to find you the best rate possible

Your questions answered

How do you go bankrupt?

People usually file for bankruptcy when they can no longer afford to repay their debts. There are several causes of bankruptcy and it will vary from case to case:

Accumulating excessive debt from credit card balances, business-related loans, or other financial obligations
A sudden loss in employment or significantly reduced income
The financial strain of divorce or separation, such as legal fees
An excessive use of credit
Failed business ventures
Medical expenses resulting from an unexpected illness or accident
Vehicle repossession can lead to financial instability and potential bankruptcy

We recognise how challenging it can be to overcome filing for bankruptcy, which can often be associated with feelings of distress or uncertainty. At We Finance Any Car, we are here to support you, regardless of your personal circumstances.

This can be a complex situation. If you have any questions or concerns, our friendly team is just a phone call away. If you’re pressed for time, simply pop us a message and we’ll be in touch soon.

What happens when you file for bankruptcy?

If you are overwhelmed by debt, bankruptcy is there to provide some relief. However, it’s not a decision to be made lightly or without careful consideration.

Once you have filed for bankruptcy, your assets will be used to repay your creditors. This can include anything from properties and vehicles to valuable personal items. If you have excess income, you may be required to make regular payments for a set period of time.

Importantly, it also means that your ability to obtain credit may be restricted. In other words, it is unlikely that you will successfully secure a finance loan while in bankruptcy.

How long will bankruptcy remain on my credit report?

Unfortunately, the impact of declaring bankruptcy can be long-lasting. In the majority of cases, bankruptcy will remain on your credit report for up to 6 years. Following this period, you will be discharged and the bankruptcy will be removed.

If you have breached the terms of your Bankruptcy Order, this time period can be extended for up to 15 years.

For a lender, your creditworthiness is one of the biggest factors to consider. An application with a bankruptcy note can carry a higher level of risk, indicating past financial strain and potential difficulties with repaying loans.

That’s why it is best to wait before applying. In terms of your credit report, this gives you time to start rebuilding and improving your score. In terms of your car finance application, it may improve the rates you’re offered and lead to lower monthly payments.

How long should I wait after bankruptcy before applying for car finance?

Generally speaking, it’s best to wait for 12 months before applying for car finance.

After this period, you will be considered a ‘discharged bankrupt’ and, therefore, a more favourable applicant. It also gives you a chance to regain some financial stability.

Whether you choose to buy outright or go down the finance route, a car is a significant investment. You want to be in a reasonably strong position before taking on this responsibility.

I've just filed for bankruptcy - can I still apply for car finance?

If you are currently bankrupt, being able to get a car through finance is very unlikely.

This is because it is illegal to obtain credit of over £500 without telling the lender that you are bankrupt. And, as the majority of lenders understand the implications of bankruptcy, the risk level would be too high.

It is better to wait until you have been discharged before submitting an application.

Can I keep my car if I have declared bankruptcy?

Declaring bankruptcy means that several of your possessions will be used to repay your debt, including any vehicles you currently own.

You will only be able to keep hold of your car if it is deemed essential, meaning something you can’t function without. Unfortunately, this decision falls on your bankruptcy receiver and is out of your hands. So, the argument that your car is convenient and therefore necessary probably won’t get you too far.

If you can find another way to get to work or take the kids to school, such as using reliable public transport, you’ll likely have to sell your car.

What is a Bankruptcy Restrictions Order?

When you file for bankruptcy, you will be given a set of rules to abide by. These are put in place to ensure you’re being honest and careful with your finances.

A Bankruptcy Restrictions Order, also known as a BRO, is a legal order that extends your period of restrictions. This could be anything from 2 to 15 years, depending on the severity of the situation.