Anyone that experienced a Ch. 13 bankruptcy knows they can be difficult because they last a long time. What happens when you need a car in that time?

When it comes being able to make a big purchase like a vehicle, the task can be daunting even without having to worry about bankruptcy. However, Auto Credit Express is here to help you through the process.

Open Ch.7 vs. Open Ch.13

How to Get an Auto Loan with a Open Chapter 13

In case you're not familar, there are two major differences between a Ch.7 and Ch.13 bankruptcy. The first is that while a Ch. 7 wipes your debt a way instantly, it leaves a shadow on your report for 10 years. An auto loan will only be considered after the chapter 7 bankruptcy is complete and you have your 341 papers.

However, with Ch. 13 you will be making set monthly payments to correct your debt. This can take anywhere from 3 to 5 years, but only stays on your record for about 7 years - including the 3 to 5 year repayment period. This means you have options to acquire new debt during chapter 13 that you don't with chapter 7.

Because of the open repayment period with a Ch.13, sometimes needs arise that can't be avoided and can't wait. When it comes to acquiring a better vehicle, there are dealers out there that can help you!

Getting an Auto Loan with a Open Ch. 13

In a bankruptcy, it is possible that your current vehicle may have been taken back by the lender. If that's the case, you need a car now to get to and from work, home, the store, doctors and any other place you need to go.

Not every dealer is prepared or willing to help you replace your vehicle. That's where we step in. Finding dealerships that works with bankrutpcy cases only take you about three minutes. That's how long it takes to complete our quick and painless auto finance application.

Once you've completed that, we will contact you to verify your information is correct and then to set a time for you to meet one our excellent dealers in your area.

When you meet them you'll need to bring with you:

  • Your account trustee's approval
  • Your proof of income
  • Your ID

From there you and the dealer will determine exactly how much you can afford so you don't go back into debt again. Then they'll help you find a vehicle that will give you the most worth with the least cost. Finding a used vehicle that is only a few years behind the current model will allow you to pay less for more car.

As We See It

When you need a car during your bankruptcy, you may feel that all the doors are closed to you. That is not the case! Auto Credit Express has helped thousands of people in situations like yours and we can help you too! It only takes three minutes to get approved with a dealer in your area, so what are you waiting for? Get back on the road!