Getting a car loan with personal bankruptcy is very difficult. This applies regardless of whether it is a small loan amount for a used car or a high loan amount for a new car. Personal bankruptcy is a very sure sign that the person concerned has not been able to meet his payment obligations to private and / or public law creditors in the previous periods.
These are very bad conditions to get a car loan or another installment loan. Under certain circumstances, a person who takes out a loan and does not disclose personal bankruptcy is even liable to prosecution. The only realistic way to get a car loan at personal bankruptcy would be to borrow from a car dealership or from a foreign bank. However, this would require a regular income.
More and more people are opting to take out their car loan not in the bank, but directly in the car dealership. This not only saves unnecessary travel, but also offers the chance to obtain a loan on much more favorable terms than is the case with most banks. Especially with smaller loan amounts or with a high income, the car banks sometimes do without private credit checker information.
If this is the case, it would in principle be possible to take out a car loan in the event of personal bankruptcy. However, the borrower would have to be very careful that he pays the monthly loan installments regularly. A critical self-analysis and a precise analysis of the personal financial situation would be urgently needed here.
Foreign bank loans
Many European or non-European credit institutions grant their auto or installment loans to German citizens who have reached the age of 18 and have a permanent place of residence. The banks regulate other award criteria. In this case, private credit checker information is not necessary.
If you have a permanent job and a secure income, you have a good chance of getting a car loan from abroad with private bankruptcy. However, there can be no guarantee of successful loan brokerage.
Personal bankruptcy and reform
It is not uncommon for a person who is in private bankruptcy to be affected by reform. If she is dependent on getting a car to find work again, the job center can grant a small loan. However, this will only be sufficient for a used car and not for an expensive new car.
In addition, the insolvent reform recipient would have to count on the fact that his loan application would be examined very carefully and only approved if the purchase of the car by the job center was considered absolutely necessary. The repayment is made in small monthly installments, with no interest being charged.