How to Buy a Car After Chapter 13 Bankruptcy
Just because you’re going through bankruptcy, doesn’t mean you won’t be able to qualify for a vehicle loan. There are lenders who will approve people in bankruptcy and we have an awesome selection of loan programs to help you get approved. While you’ll more than likely have a higher rate of interest on your loan, as long as you make your payments on time you’ll be rebuilding your credit and getting the vehicle that you need. The lenders we work with understand that bad things sometimes happen to good people. At YourApproved.com we want to do everything we can to help you get the vehicle you need and get you approved for financing.
When looking for a loan after Chapter 13 bankruptcy you’ll want to find a dealer or lender that is willing to work with you. They will need non-traditional lenders who have experience with working with bad credit car buyers. YourApproved.com looks past your credit issues and will work with you to get the financing you need. We have many loan programs that will work for you.
Getting A Car Loan With Bankruptcy
If you need a new car and cannot pay with cash, you will need to finance it. If you’re in bankruptcy, you may have to wait until it’s over to get a car loan, depending on whether you filed for Chapter 7 or Chapter 13.
Chapter 7 bankruptcy.
If you filed Chapter 7, you will need to wait until you receive your discharge. Chapter 7 cases typically only last four to six months, sometimes a year. Once you have your discharge order, you can use that to show any lender that your case discharged
Chapter 13 bankruptcy.
If you filed Chapter 13, you can either:
- wait for your discharge, which will not be entered until your repayment period is over (between three to five years), or
- get court permission to take out a car loan while your case is still pending.
Finding a Legitimate Car Loan Lender?
Once you complete our simple auto financing request form, your information is sent to our direct partners where you could get approved for auto financing while visiting a dealership. This puts you in the driver’s seat and allows you to negotiate your car purchase like a cash buyer.
In addition, we’ll forward your information to one of our participating local auto dealers who work with car finance companies that specialize in bad credit auto financing. Compare financing terms and choose what works best for you!
How to Find a Legitimate Lender
Contact the BBB. Check with the Better Business Bureau, and make sure the company has a physical street address and a customer service line for answering questions, not just for leaving messages.
Contact the attorney general. You can check with your state’s attorney general’s office to make sure the lender has registered in accordance with applicable laws.
Research the lender online. Run a search on the Internet to find out more about the company that you’re considering dealing with. Borrowers who have previously been scammed or had bad encounters often post about their experiences and warnings online.
Applying for a Car Loan After Chapter 7 or Chapter 13
You will receive a copy of your discharge order from the court once your bankruptcy is over. You can submit this discharge order along with any other documentation the lender requires to process your application.
Applying for a Car Loan During Chapter 13 Bankruptcy
To get this approval, you will need to get pre-approved for the loan and obtain a document from the lender with the approved interest rate, loan amount, and monthly payment amount. You will also need to amend your bankruptcy income and/or expense schedules to reflect the new car payment and show that you can afford it.
You will then need to file a motion with the court to incur debt. In the motion, you must include information about the interest rate, loan amount, payment amount, and the make, model, and year of the car you wish to purchase. You will also have to explain any changes to your amended income and expense schedules as well as why you need the new car. If your amended schedules show you can no longer afford your current Chapter 13 plan payment, you will need to file a plan modification to change the plan payment accordingly.