When you are involved in a Chapter 13 repayment plan, you have agreed to pay a certain amount of your debt back to your creditors over a three or five year period. And when you need to purchase a vehicle during that time, or incur any additional debt, you need trustee approval in order to finish the process.

Auto Financing After Chapter 13

What do I Need to Get Approved for an Auto Loan During a Chapter 13 Bankruptcy?

Of course, not every dealership knows how to properly work with you in your situation, so getting the necessary information on the car you are considering can be difficult. The reason that most dealerships are hesitant to give you the information you need is because they don't want to hold the car. After all, you may not get approved for the purchase, and they would miss out on a sale to another buyer because they were holding the car for you.

When you work with Auto Credit Express, we help you find the dealership that can - and will work with car buyers who are dealing with a Chapter 13 bankruptcy.

How It Works

First, get all of the information you can from the dealer on the car you are buying such as price, loan terms, and the monthly payment amount. This is known as the "purchase contract."

Next, you will provide the trustee with the reasons you need a vehicle and show how much it will cost you in addition to the monthly payment (fuel, insurance, etc.). After that, they will determine if the cost is acceptable, and possibly make adjustments to your Chapter 13 payments.

Once you have the authorization from the trustee, you can complete the transaction and drive away in your new vehicle.

Keep It Simple

When you are involved in a Chapter 13 plan, it's probably not the best time to pick out your dream car. Look for a low priced, reliable car that is less than five years old. Look for the basics: reliability and safety. Adjusting your expectations may make it easier for you to find the car you need.

So, if you're ready to get back on the road, fill out our fast auto finance application today. Don't let uncooperative dealers hold you back, and get into the car you need today.