How to Get An Auto Loan After Chapter 7 Bankruptcy
You probably think that purchasing a vehicle immediately after filing bankruptcy is impossible. While, you probably won’t run out the day after filing, you don’t have to wait years either. YourApproved.com has many Chapter 7 Bankruptcy loan programs, may which require $0 down payment. Our Chapter 7 loans are designed to help people purchase a vehicle with both open and discharged Chapter 7 Bankruptcies. You may be thinking, “Why would anyone buy a vehicle after filing Chapter 7 Bankruptcy?”. In all reality, there are actually many reasons to buy a vehicle after Chapter 7 bankruptcy. Here are a few of those reasons:
An auto loan can help you rebuild your credit.
You may be saying to yourself, “how can acquiring more debt help to rebuild my credit?” Obtaining a major installment loan, like an auto loan, and making regular payments can help you reestablish your credit. Making payments on time will help improve your credit and help put your bankruptcy behind you. Credit is everywhere in our lives. Want to purchase a home? Rent an apartment? Get a new job? You’d be surprised how many times in your life your credit situation could make an impact on your future. Start rebuilding your credit now!
Chapter 7 Bankruptcy loans usually require a low down payment, possibly even $0 down.
Chapter 7 bankruptcy lenders realize that you just went through a bankruptcy and they understand that you probably don’t have $1,000s of dollars to make a down payment on a vehicle. With our selection of loan programs, we are sure to find a program that will fit your needs.
Having a reliable form of transportation is important to helping you rebuild your credit.
Most bankruptcy vehicle loan programs are designed to help people purchase that the lender determines is reliable transportation. The lender’s definition of reliable may be different than yours. The basics stay the same though. Low miles. Recent model year.
What about individual auto loans?
Examiners should not automatically classify or place loans in special mention merely because they are subprime. Rather, classifications should reflect the borrower’s capacity and willingness to repay and the adequacy of collateral pledged. Loans to borrowers that do not have the capacity to service their loans generally will be classified substandard. Where repayment capacity is insufficient to support orderly liquidation of the debt, and the collateral pledged is insufficient to mitigate risk of loss, then a more severe classification and non-accrual is warranted. Subprime loans that are past due 90 days, or more, should be classified at least substandard based on a reasonable presumption that their past due status is indicative of inadequate capacity and/or unwillingness to repay. A more stringent classification approach may be appropriate based on the historical loss experience of a particular institution. Classification of other subprime loans as doubtful or loss will be based on examiners’ analysis of the borrower’s capacity to repay, and the quality of institution underwriting and account management practices as contained in the loan file or other documentation.
In some cases, the repayment of principal, interest, and fees on some subprime loans may be overly dependent on collateral pledged. This occurs when risk of default is so high that an abundance of collateral is taken to mitigate risk of loss in the event of default. From a safety and soundness perspective the Agencies discourage lending solely on the basis of collateral pledged, and will generally classify such loans substandard. Further, when the borrower does not demonstrate the capacity to service the loan from sources other than collateral pledged, the loan may be placed on non-accrual.