The threat of bankruptcy looms like a bogeyman hiding in the closet over many adults struggling to keep up in the wake of the recession of 2008. While bankruptcy is treated like something of a four-letter word for many, the truth is it doesn't have to spell the end of your hopes to own a car. Even if your financial history is less than stellar or you're a bankruptcy survivor, it's still possible to make good on your dreams of owning a car, if you follow the right steps. 

Think used
When it comes time to finance a car after going through bankruptcy, you're bound to have far better success in the used market than if you were shopping for new cars. According to BankRate, used cars are a much better option, as the lower price point is appealing to lenders being asked to finance a bankruptcy survivor, and you'll be more likely to find solid, reliable transportation at those price levels in a used car than in a new one.

Know your limits
In general, you'll likely find that lenders are more willing to offer you a car loan after bankruptcy than you might expect. Of course, that doesn't mean that the sky's the limit when it comes time to choose your model. While you aren't necessarily expected to go lemon picking, you also should be realistic with your expectations and your decision making. As BankRate noted, the $10,000 to $15,000 range is where you should be focusing your efforts, as it represents the best balance between affordability and reliability so you won't find yourself running into trouble later.

Prepare to spend a bit more up front
According to CarsDirect, lenders will be assessing your eligibility for a loan based largely on your prior payment history, specifically on your most recent car. If you're just coming out of bankruptcy, chances are this isn't stellar, so anything you can do to ease the minds of your lenders will help you get approved for a loan. If you offer up a higher down payment, you may find yourself spending more out of pocket right away, but it's a good way to indicate your seriousness to your lender, and could help your chances of getting approved.

When you're looking for a used car, head to  NJ State Auto Auction. You'll find hundreds of Carfax-certified cars on the lot, and an in-house finance team to help you afford the used vehicle of your choice.