How to Get a Car Loan While Filing for Bankruptcy

It may seem almost impossible to get approved for a loan if you have bad credit, most especially if you have recently file bankruptcy. However, applications for automobile loans even after you have filed bankruptcy is quite common these days, but if you are in dire need of a car loan in the middle of your filing then the process may vary depending on which personal bankruptcy you chose: Chapter 7 or Chapter 13.

The Chapter 7 bankruptcy would settle a person’s assets and evaluate how much will be given to his unsecured creditors. It would only take a few months to finish the process of this personal bankruptcy, and it could only be file once after 8 years.

Chapter 13 however takes about three to five years to complete. This form of personal bankruptcy would involve getting a payment schedule that must be adhered to and completed by the one who filed it.

Of course, since Chapter 7 would be faster to complete compared to Chapter 13, automobile loans would vary too.

If you have filed a Chapter 7 bankruptcy, then this is what you should do: first, you must make sure you are eligible for it. If you are, then you should have a 341 meeting with the creditors and a judicial hearing would be in charge of evaluating your assets and the truthfulness of the personal information you have placed in your debt schedule.The time of the meeting you set with a 341 creditor is important since only some of them would check an applicant’s file after the meeting.

Meanwhile, if you have filed a Chapter 13 bankruptcy, it is important that you send your request to a trustee so that you can ask the court for a petition to prevent you from acquiring more debt. If you are granted the petition, you will have the privilege to get a loan and you can get the maximum interest rate and dictate the terms of the amount of the loan. But if you are declined the privilege, then you cannot apply for any loan.

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