FIND AN AUTOMATIC LOAN DURING BANKRUPTCY
When financial setbacks occur, bankruptcy is sometimes the best way to move forward. Life goes on and for most people, a car is essential to this process. But can you get an auto loan while you are bankrupt? It depends in part on the type of bankruptcy for which you are applying. The two most common forms of personal bankruptcy are Chapter 13 and Chapter 7.
Chapter 13 Bankruptcy Financing
Chapter 13 allows a debtor with a stable income to keep property that he might otherwise lose during the bankruptcy proceedings. A plan is in place to fully or partially reimburse creditors over three to five years. In this case, the debtor must obtain the authorization of the administrator designated by the court to contract new debt, such as a car loan. If this is granted, they can find a suitable lender who accepts the demands of bankrupt or bankrupt consumers.
Buy a car according to chapter 7
Chapter 7 bankruptcy is different. According to Chapter 7, the non-exempt assets of a debtor are sold and the proceeds are returned to the creditors. The process takes approximately 120 days or four months between filing the file and settling the debt and closing the file. In this situation, you may have to wait until you are informed that you have filed for bankruptcy before trying to get an auto loan.
Credit creation and loan purchase
Although it is possible to get an auto loan in bankruptcy, you must accumulate your loan for a certain time before applying. A positive credit history helps your credit rating, which is one of the most important factors in deciding whether you qualify for a loan and what interest rate you could earn, says the Consumer Financial Protection Agency. Check your credit reports with the most important credit bureaus. Find and correct any inaccuracies that could affect your access to credit and the best possible conditions.
Once you've done these things, you're in better shape to get approved and, if approved, a better rate. Whether it's Chapter 7 or 13, CarLoanDealer.com online lenders only accept requests from consumers whose bankruptcy has been resolved.
A reliable full spectrum lender
CarLoanDealer.com is the direct lending platform of Santander Consumer USA and has many years of experience in providing car loans to customers across the credit spectrum. Our online process is quick, simple and puts you at the center. You can apply in minutes at home, at work or from your mobile device and make a decision immediately. If approved, print the loan package and contact your nearby recommended dealer to purchase high-quality cars. Apply for a car loan and make a decision right away.