Chapter 7 Vs Chapter 13 Bankruptcy: The Impact On Car Financing
At BKCarFinance we understand that when it comes to managing money, a good number of individuals experience difficulty. If you’re contemplating a Chapter 7 vs Chapter 13 bankruptcy, you should be aware of how this may affect your ability to get a car loan in the future.
Post-Bankruptcy Auto Lending Guidelines
Our network of direct and indirect auto lenders specialize in providing auto loans to people with poor credit, even if you have a discharged bankruptcy on your credit report. Not everyone qualifies, but if you meet the lending criteria listed below, your chances of being approved are good.
- Verifiable gross monthly income of $1,800.00 per month or more
- FICO score must be 525 or higher
- No repossessions within the last 12 months can appear on your credit report
- All bankruptcies must be discharged or complete
- Some minimum amount of qualifying credit
Chapter 7 Bankruptcy and Car Loans
Chapter 7 bankruptcy is one of the many bankruptcy types allowed under federal law. It’s also known as liquidation bankruptcy because it allows a trustee to liquidate or sell off all eligible assets to pay off debt. You may think that the last thing you can do after bankruptcy is get approved for an auto loan, but if you filed Chapter 7, think again.
A closed Chapter 7 discharges all debt, so you start your financial life over with a clean slate. Although you’re credit score takes a nosedive after bankruptcy, you may suddenly have more money on hand than you had previously because you no longer have debts to pay off.
BKCarFinance specializes in finding bad credit auto loans. If your Chapter 7 bankruptcy has been discharged, we may be able to help.
Chapter 13 Bankruptcy and Car Loans
Chapter 13 bankruptcy is essentially a repayment plan devised by the debtor, approved by a judge and paid off over the course of several years. Unfortunately, if you have an open Chapter 13 bankruptcy, qualifying for an auto loan will be difficult through traditional sub-prime lenders. A Chapter 13 bankruptcy can take several years to discharge and while it remains open your best option might be to go through a buy here pay here car dealer. Although it’s not impossible to get auto financing during an open Chapter 13 bankruptcy, your options are very limited. Check out www.carlotloans.com if you’re currently in an open BK 13.
Get Professional Advice
Understanding your car financing options ahead of time might be useful when contemplating whether to file a Chapter 7 vs Chapter 13 bankruptcy. Of course, there are other factors to consider and we recommend discussing your situation with an attorney that practices bankruptcy law. Keep in mind however, that you’ll have more options for an auto loan with a discharged BK 7.