Voluntary Termination and Voluntary Surrender Explained

Bankruptcy can have a significant impact on your ability to get car finance, but it is still possible to get approved if you take the right approach. One option is to work with specialist lenders who are willing to work with people who have a history of bankruptcy. These lenders may charge higher interest rates, but they may be more willing to take on the risk. Another option is to consider getting a guarantor for your car finance. This can be a family member or friend who agrees to make payments on your behalf if you are unable to do so. This can help reduce the risk for lenders and increase your chances of getting approved for car finance after bankruptcy. However, it’s important to make sure that your guarantor understands the risks involved and is willing and able to make payments if necessary.

Improving your credit score can also help increase your chances of getting approved for car finance after bankruptcy. This can be done by making sure to pay all of your bills on time and avoiding taking on too much debt. It’s important to be patient, as it can take time to rebuild your credit score after bankruptcy.

If you are struggling to keep up with your car finance payments, voluntary termination or voluntary surrender can be useful options. Voluntary termination allows you to end your car finance agreement early if you have paid off at least half of the total amount owed. This can help you avoid additional fees and charges, but it’s important to remember that the lender may charge you for any damage or excessive wear and tear on the car.

Voluntary surrender is another option that allows you to return the car to the lender, but this can be done at any time, regardless of how much you have paid off on the car finance agreement. However, in this case, you may be liable for additional charges, such as early termination fees and any outstanding payments.

It’s important to note that voluntary termination or voluntary surrender can have an impact on your credit score, so it’s important to consider all of your options before making a decision. For example, you may be able to negotiate a payment plan with your lender or refinance your car finance agreement to make the payments more affordable.


In conclusion, managing car finance payments after bankruptcy or struggling to keep up with payments requires careful consideration of your options. Working with specialist lenders, getting a guarantor, and improving your credit score can all help increase your chances of getting approved for car finance after bankruptcy. Remember to read the terms and conditions of your car finance agreement carefully and to seek professional advice if necessary. With the right approach, you can manage your car finance payments and enjoy your car without any added stress or financial burden.

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Dominion Finance are specialists in providing car or van finance for customers with poor or bad credit lender in the UK. If you are a UK based dealer or broker and are looking for a specialist poor credit car finance provider then please contact Dominion Finance today. We work with car dealers and brokers of all sizes across the UK.