It is difficult to build credit back up after you are bankrupt but getting a car loan is possible. You need to meet the lender’s requirements to qualify, meeting the income, employment, and residency requirements most lenders look for. Make sure you have your discharge paperwork with you when you visit a dealership. In another way, you also strike out with a car loan after bankruptcy, by trying to apply following a dismissal. If you didn’t complete your bankruptcy and you want to get approved for a car loan typically have to wait until your credit has recovered by other means, or the dismissal drops off your reports, which could take up to seven years.
This is considered a liquidation bankruptcy, and it is relatively quick, and typically lasts only three to six months before it’s discharged. You can apply for a car loan with open chapter 7 bankruptcy is also possible to approve, once the 341 meetings with your creditors have taken place, but the chances of approval won’t be high. So, when dealing with a Chapter 7 bankruptcy the best time to finance a car once you have been discharged from this bankruptcy. It’s good to wait anyway because adding more debt may put you in a financial bind. So before applying for a supreme auto loan make sure you have the official discharge paper.
If you file for Chapter 13 bankruptcy, you can set a repayment plan of either three or five years in which you will pay the complete amount or a part of your debts, this will happen in the protection of the court. In this, you will pay a monthly amount to your bankruptcy trustee which is then distributed to your creditors. The main advantage of this type of bankruptcy, you have the opportunity to retain your property and assets. You can apply for an auto loan also, you have to apply with a dealership, they will send your application to the lender for a loan decision. Then lenders set the acceptable terms of your loan and you’ll be able to choose from vehicles in the dealership’s inventory that you qualify for.
