We’re Here to Help

Filing for bankruptcy is a process that can evoke a lot of emotions ranging from embarrassment, and disappointment, to sadness and fear. However, here at Spitzer Chevrolet Northfield, we know that no matter your financial situation, you still need transportation, which is why our auto finance center is here to help you get a car loan in the midst of bankruptcy. Let’s take a tour through obtaining a car loan after bankruptcy and discover how our experts work to make the process earlier.

Check your credit report

Filing for bankruptcy can cause your credit score to drop by more than 200 points, making obtaining a car loan more difficult and much more expensive. In response to a lower credit score, lenders often require higher down payments and raise interest rates, making loan payments higher. While there is no magic way to make a bankruptcy disappear, there are some preemptive measures you can take before applying for your next car loan to make the process easier.

Check your credit report using some free online tools for anything on your credit that you can improve before applying for your next car loan. Sometimes, a simple call can remove blemishes or inquiries, potentially raising your credit score and possibly improving your loan terms when you apply.

Obtaining a New Car with a Chapter 7 Bankruptcy

Filing for Chapter 7 Bankruptcy means that a person is given three to six months to settle their debts with the option of liquidating their assets to pay what they owe. Getting a car loan during this period is difficult because many lenders object to the risk of a vehicle owner defaulting on their monthly payments during this period of liquidation. It is often recommended that you wait until after this period to obtain a car loan. Once your bankruptcy has been discharged, bring your official discharge papers to us and let our experts search for competitive auto loans so you can get on the road and enjoy a quality new car while you rebuild your credit.

Obtaining a New Car with a Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is much more stable than Chapter 7, therefore making it easier to obtain a car loan during the process. Chapter 13 Bankruptcy takes three to five years to resolve thanks to court-ordered monthly payments, making it much easier to calculate whether or not taking on additional debt is a wise decision. If you’ve chosen to move forward with the purchase of a new vehicle, you’ll need court approval. This process involves you submitting a sample buyer’s order with the exact vehicle that you intend to buy, filing a Motion to Incur Additional Debt. If approved, bring your documentation to our dealer so our experts can move forward with your car loan and get you on the road.

Your New Car Awaits!

Despite the challenges of obtaining a car loan with a bankruptcy hanging over your head is difficult, but here at Spitzer Chevrolet Northfield, we work with you to ensure that you can drive home in a new vehicle. Contact us today and discover how you can get into your new Chevy today!