When a financial crisis happens, a loan could be the best way to deal with the situation. Life goes on and for some people, a car is essential to that procedure. However, do you think you can get an auto loan while in bankruptcy? Well, it’s based on the type of bankruptcy your condition falls on. The two common types of bankruptcy are Chapter 7 and Chapter 13.
Buying a Vehicle after Chapter 7
Chapter 7 bankruptcy is a case, where a debtor’s non-exempt property is sold and the money realized on it, is given to the creditors. The procedure takes about 4 months or 120 days. It involves filing till all the debts are written off and the case closed. In this condition, you may need to wait in order to get a notification that the bankruptcy has been solved before you get a car loan.
Financing While in Chapter 13 Bankruptcy
Chapter 13 bankruptcy enables a borrower with a reliable source of income to hold the assets which they might lose to the bankruptcy situation. A plan is made to pay creditors part or all of the money owed over 3-4 years. This will ensure that the debtor gets permission from the court of law and appoint an agent to take on new debt. If it’s granted, they can move forward by getting a reliable lender that accepts applications from customers who are passing through bankruptcy.
Building Credit and Shopping For Loans
Although it might be possible to get an auto loan during bankruptcy, you can also think about improving your credit rating before getting a car loan. A good credit record will assist your credit rating. This is one of the major factors in knowing whether you will get a loan and the interest rate of the loan.
Before you apply for a car loan, ensure you check your credit records for mistakes or blunders that might affect your ability to get credit and getting the best terms for your condition. You need to make some comparison when shopping for a loan. Even with bankruptcy on your credit reports, there are professional lenders such as Car Loans Of America who are ready to accept your loan application.
Get a Lender Where All Credit Types Can be Used
Car Loans Of America is the best auto loan lending platform in the USA with many years of experience providing auto loan financing to clients across the credit spectrum.
Our online procedure is easy, reliable and fast. You can apply for a loan at the comfort of your home, work, through your computer or mobile device and get instant approval with access to the needed cash.
If you’re approved for the loan, ensure you print the package and contact your dealer to shop for quality cars, trucks or SUVs. We partner with a network of dealerships that are going to help you choose cars that meet your needs for mileage, age and financing. Apply for a car loans from Car Loans Of America today and get quick approval.