GET A NEW CAR EVEN WITH A BANKRUPTCY
The road of life isn’t without bumps. Economic conditions, divorce, job loss, and many other factors can sometimes result in the need for a legal fresh start – bankruptcy. One of the questions we hear most often is “can I still get a car loan with bankruptcy?”
The answer is, almost always, yes!
Whether you’ve filed Chapter 7 or Chapter 11, it is possible to obtain an auto loan with bankruptcy. CreditYES® and our nationwide network of dealerships work with lenders everyday that specialize in getting bankruptcy auto loans approved.
THE CHAPTER MAKES THE DIFFERENCE
When looking for a car loan with bankruptcy, the chapter in which you have filed must be considered. While there are several types (chapters) of bankruptcy, the two most common for personal bankruptcy are Chapter 7 and Chapter 11.
CHAPTER 7 BANKRUPTCY AUTO LOANS
With Chapter 7 Bankruptcy, you can actually obtain automotive finance during your court proceedings – meaning you don’t have to wait for your discharge to get an auto loan. After your 341 meeting (meeting of creditors), you’re able to search out finance options and purchase a new or used vehicle. This is especially important if you relinquished (or plan to relinquish) another vehicle in your bankruptcy but need transportation. Our dealership network can get you an auto loan with bankruptcy and into a new car quickly.
CHAPTER 11
Chapter 11 Bankruptcy is – by definition – a restructuring of debt. The Bankruptcy Court will assign a trustee to oversee your finances for a period of time after the bankruptcy is discharged (usually 3-5 years), and you’ll have to make negotiated monthly payments to the Court to satisfy your debts owed. Obtaining an auto loan with a Chapter 11 bankruptcy isn’t necessarily more difficult than a Chapter 7 situation, but there are more restrictions on the borrower.
You will have to wait until after your proceedings are discharged and your trustee will need to give permission for you to obtain an auto loan with bankruptcy. If you are in a Chapter 11 situation CreditYES® can help you, but it is always best to consult an attorney before moving forward.
TIPS FOR BANKRUPTCY CAR BUYERS
1. Know Your Credit
Before you begin the auto buying process, as with any large purchase, you should check your credit reports. There are options available online where you can request and receive a 3-bureau report once per year for free. Make sure the information on your credit report is correct, and initiate a dispute for any incorrect info or errors.
2. Save Up For A Down Payment
Being able to provide a down payment when you’re looking for a car loan with bankruptcy will greatly improve your chances of approval by the lender. There is no set amount when it comes to down payments, but the average is around 12 percent of the MSRP of the vehicle. 20 percent is ideal.
3. Use CreditYES® To Buy
Once you have a good handle on your credit and you have some cash set aside for a down payment, it’s the perfect time to pre-qualify with CreditYES®! Regardless of your situation we can help, and our nationwide dealer network gives you the power of choice when it comes to car buying. Our pre-qualification process is fast and easy and won’t negatively affect your credit score.
BANKRUPTCY DOESN’T HAVE TO STOP YOU FROM A NEW VEHICLE PURCHASE
Our credit specialists have helped over 1 million people get into new vehicles. CreditYES® has a dedicated and knowledgeable team available 24/7 to answer any questions or get you pre-qualified.
We have reputable dealerships across the United States who know how to get you a car loan with bankruptcy. From brand new to late model used vehicles, every make and model imaginable is available.
Best of all, CreditYES® is a completely free service. You don’t have to worry about hidden fees or paying more for your next car. We pre-qualify you quickly over the phone or online and you head to the dealer to shop.
CreditYES® is the trusted auto finance authority who know how to get you an auto loan with bankruptcy. We help finance your future, not your past.