Obtaining a car loan in spite of personal bankruptcy is actually impossible through German and foreign banks, because with private bankruptcy the potential borrower also loses all creditworthiness. In Germany, personal bankruptcy must always be taken up if the person concerned can no longer pay all debts on their own.
Through the bankruptcy, a “final line” is drawn, from which the person concerned is obliged to be more conscious in dealing with money and debts. Part of the income is still attached to repay creditors at least part of the outstanding amount. In addition, the person concerned is in a behavioral phase for several years, where an obligation is undertaken not to cause further debts under any circumstances.
Take out an emergency loan
A car loan in spite of personal bankruptcy would be a further debt burden, which would also not even be raised due to an absolute emergency, such as could be the case when taking out an installment loan. Instead, the car loan is more of a financing for a luxury good, even if the car may be needed for a new job or other important matter. During a personal bankruptcy, the person concerned is simply not allowed to go into debt, least of all because of a dispensable luxury item.
Alternatives away from the classic bank
While the bank will always issue a rejection for the car loan despite personal bankruptcy, regardless of whether it is a large or a direct bank, the person concerned still has several other options for borrowing. He can also take out the loan or the required amount of money from the private environment, for example by asking family members or friends for a “financial injection”.
As a rule, however, the fact of private bankruptcy is well known to them, which is why the chances of actually receiving the loan are not necessarily high here either. Nonetheless, on a private level among friends and relatives, it is much more the relationship between them that is decisive, rather than the red or black numbers and an assessment of the creditworthiness.
Accordingly, car loan is still possible despite personal bankruptcy if, for example, your own partner, grandmother or parents act as the lender. However, personal loans are also granted outside of one’s own environment, because many credit portals have even specialized in mediating between borrowers and lenders.
Affected persons can create an advertisement or search for a lender and borrow the desired amount from this private individual. Usually, however, this is difficult to do in the case of personal bankruptcy, because here it is no longer a private relationship that decides, but only the finances of the borrower.