auto

Can you buy your leased car in bankruptcy?

Tara Baukus MelloQuestionDear Driving for Dollars,
I filed for bankruptcy, but kept the house and the cars out of the filing. One of the cars is leased and I want to buy it when the lease is up in about 18 months. Can I?
-- Anna

AnswerDear Anna,
The bankruptcy filing won't prevent you from buying your leased car, but it might stop you from getting a car loan or at least, a good interest rate to buy that car. Your bankruptcy will remain on your credit report for seven years in a Chapter 13 bankruptcy or 10 years in Chapter 7 bankruptcy. So, lenders are likely to be less likely to give you a loan, or they may charge you a much higher interest rate on a car loan. Since you have 18 months before you want to buy the car, do what you can to re-establish your credit now. Make sure you have a steady source of income, stay current on all your bills and look into getting a smaller car loan that can be paid off before you need to apply for the car loan.

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If you have a car question, e-mail it to us at Driving for Dollars. Read more Driving for Dollars columns and Bankrate auto stories.
 

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