Consumer Car Buying Advice Blog

Here at Auto Credit Express, we get a lot of questions from customers that are currently in a bankruptcy that wonder if they can get a car before the bankruptcy is discharged. It really depends on what type of bankruptcy you’re in and where you are in that bankruptcy…

If you are in a Chapter 7 bankruptcy

For those of you that are in a Chapter 7 bankruptcy, the 341 Meeting of Creditors must have been completed.

If you are in a Chapter 13 bankruptcy

A Chapter 13 bankruptcy can make the process more difficult. In order to purchase a car during the bankruptcy, the trustee needs to be informed. The trustee then needs to introduce a Motion before the judge to incur additional debt. If the judge approves the motion, he will issue an order to incur additional debt. This order will include the amount of debt that will be allowed.

Before a lender will approve a car loan, you will need to provide proof in the form of the formal order issued by the judge. In addition, many lenders require that you are at least 2/3 through the bankruptcy.

The Bottom Line

While these are some general guidelines, you should always check with your bankruptcy attorney before making any financial decisions during your bankruptcy. Once you have made that decision, we invite you to visit our website at www.autocreditexpress.com. Here you can find many of the answer that you might have about the subprime buying process. Our web site includes finance calculators as well as a resource center to help you in your research. Our application is SSL secured to ensure your privacy. Best of all, you can apply online in the privacy of your home. Remember, here at Auto Credit Express, we want you “on the road” to better credit!

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