Yes, you can get a car loan after you’ve come through a Chapter 7 bankruptcy. Once it’s completed, you’ll typically have an easier time getting a car loan.
Chapter 7 at a Glance
Chapter 7 bankruptcy is a solution to a financial crisis that shouldn’t be taken lightly. A relatively short process, typically lasting four to six months, it’s called a liquidation bankruptcy because your court-appointed trustee is responsible for selling off – or liquidating – any of your non-exempt property to repay your debts.
Most debts that remain after your Chapter 7 is discharged will then be wiped clean. Make sure, however, that your bankruptcy was discharged. If it was dismissed, you won’t be getting financed anytime soon. People who haven't successfully completed their bankruptcy typically aren’t eligible for an auto loan.
After Your Bankruptcy
Sure, your bankruptcy may seem like a miracle cure to financial problems. Though it can be helpful in that sense, it’ll leave you with lower credit scores and a mark on your credit reports that lasts up to 10 years. Because your credit has taken a hit, you’ll most likely need to visit a special finance dealership that works with subprime lenders if you need auto financing.
Not all lenders can work with you after a bankruptcy, although more will work with you after than during one. Subprime lenders have the ability to look beyond a credit score and approve you based on other factors. The good news is that it’s often easier to obtain an auto loan after bankruptcy – as long as you can find the right lender.
We Want to Help You Get Financing
Here at Auto Credit Express, we work with special finance dealerships from coast to coast. These dealers work with subprime lenders that can help people finance vehicles after bankruptcy. Let us help you get on the path toward your next vehicle today! Simply fill out our online auto loan request form to get the process started, and we’ll begin by matching you with a local dealership that wants to help you!