Is Financing a Vehicle after Filing Bankruptcy Really a Thing?
Getting a Car Loan After Filing Bankruptcy
Financing a vehicle after filing bankruptcy is probably less difficult that you may think. It is actually quite common for people to finance vehicles after filing a case under chapter 7 or chapter 13.
At Financial Freedom Legal, we 100% understand that having a reliable source of transportation is a must!
So, here’s the tea on getting a vehicle loan after filing bankruptcy!
Ability to Pay
An important part of getting approved for a vehicle loan is being able to demonstrate that you can afford to pay the monthly loan payments. So, at a minimum, you will need to be able to show that you have regular income.
Vehicle Financing After Chapter 7
There is no waiting period required to finance a vehicle after filing a chapter 7 bankruptcy.
Some lenders may be willing to approve your vehicle loan within days after your chapter 7 filing.
However, many lenders will require that you receive a chapter 7 discharge before approval. Generally, it takes approximately four months from the time of filing to receive a discharge in bankruptcy.
Vehicle Financing After Chapter 13
There is no waiting period required to finance a vehicle after filing a chapter 13 bankruptcy. However, most lenders will require that you have a confirmed chapter 13 plan before they will approve you for a vehicle loan.
Generally, it takes approximately two to three months from the time of your bankruptcy filing for your plan to be confirmed.
Bankruptcy court permission is also required to obtain a vehicle loan in an amount of $5,000.00 or more while you are in a chapter 13 case. But, don’t worry. Financial Freedom Legal will take care of that part for you.
Our Community Partners
Financial Freedom Legal has partners in the vehicle industry that can help you find the perfect vehicle and get approved for financing.
We will provide you with a list of partner dealerships that understand the bankruptcy process, have access to lenders that work with people who have filed bankruptcy, and share in Financial Freedom Legal’s goal of helping you attain financial freedom!
That concludes this week’s Bankruptcy Tea with Steve and Vee. Please do not hesitate to contact us for additional information. You can reach us anytime at 804-FREEDOM! We would love to hear from you!
