Bankruptcy Car Loans

The Chevy Finance Center At Our Northfield Car Dealership
Can I get a car loan after bankruptcy? Filing for bankruptcy is tough, and buying a car after bankruptcy using bankruptcy auto loans can be tricky. At Spitzer Chevy Northfield, our finance center wants to simplify this process for you as much as possible. We’ve written this article to explain why good credit history is important to taking out a car loan and how to approach getting a car loan after bankruptcy. We hope you find this article useful.

Bad Credit Score And Bankruptcy Car Loans
Bankruptcy can decrease your credit score by as much as 160 to 220 points, depending on the type you file for. This can transform a good credit score into a bad to poor one. As a result, auto lenders and credit unions which work with car dealers will offer you car loans with higher down payments, higher interest rates and higher monthly payments than you’re used to seeing. To lower your payments, try raising your credit score however you can. Check your credit report for anything you can improve prior to applying.

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Chapter 7 Bankruptcy Car Loan
A Chapter 7 bankruptcy is also known as “liquidation bankruptcy” because the person filing is given 3 to 6 months to resolve their debts with the option of selling or “liquidating” all of their assets to pay said debts. It’s difficult to get a bankruptcy car loan while your Chapter 7 bankruptcy is open. That’s because auto lenders don’t want to risk you defaulting on your monthly payments in the shuffle of your bankruptcy.

However, it’s very simple to get a car loan after your bankruptcy has been discharged. Just take your official discharge papers to your auto lender, and you should be good to go. Come to the Chevy finance center of our Northfield car dealership and learn how our Chevy finance experts can help you today.

Chapter 13 Bankruptcy Car Loan
It’s much easier to get a car loan with an open Chapter 13 bankruptcy than a Chapter 7 because of its stability. A Chapter 13 bankruptcy takes 3 or 5 years, and it’s resolved by court-ordered monthly payments. As such, it’s very easy to calculate whether or not taking on additional debt is a good idea. The process of doing so is fairly straightforward:

Find a dealership with lenders who are willing to lend to someone with an open Chapter 13 bankruptcy. Then get a sample buyer’s order detailing the year, make and model of the vehicle you’d like to buy and the interest rate, monthly payment, etc. of the loan you’d like to take out to buy it. Bring the sample buyer’s order to a court for review.
Once approved by the court, it needs to be approved by your bankruptcy trustee. Explain to them your reasons for needing a car, and your trustee will determine if your finances can handle the additional debt. Upon approval, they will file a Motion to Incur Additional Debt to the court. A copy of this motion will be sent to the creditors involved in your repayment plan.
If the creditors don’t object, then the court will decide to approve or deny the motion. Assuming it approves, you’ll be handed an Order to Incur Additional Debt. Take this order to your Northfield car dealership finance center and finalize the terms of your car loan.
Visit Our Northfield Car Dealership
We understand that a premier car-shopping experience starts with a friendly sales team and ends with an incredible finance team. We know our Chevy finance center at Spitzer Chevy Northfield is what truly sets us apart from other Northfield car dealerships. Our experts in Chevy finance are the best of the best at structuring car loans and leases for everyone, regardless of their credit history. Visit Spitzer Chevy Northfield today to experience excellence.