Autos Finance Some Insights for Bankruptcy Car Loans Posted on July 5, 2017 7 min read 0 350 Did you know that the kind of bankruptcy you file or will file has far-reaching consequences? You need protection from creditors and you are choosing bankruptcy as a legal way out of your financial troubles. Have you given any thought to all that you will face in credit market place post-bankruptcy discharge? You will have to rebuild your credit file for one thing and maybe even try to qualify for loans including an auto loan. Car buyers with a successful bankruptcy discharge will find car loan approvals are not easy to come by. It is certainly not as easy as when you had no overwhelming debts and a shadow of bankruptcy looming over your finances. Bankruptcy car loans are much more difficult than conventional car loans. What Type of Bankruptcy Available? Those thinking about filing for bankruptcy should consider their options. Most people get to choose between Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. Chapter 7 Bankruptcy Borrower agrees to sell all valuable property and assets to settle debts. Borrowers or their lawyers then distribute profits from auction among creditors listed in bankruptcy proceedings. Legal financial settlement by debtor through a bankruptcy means creditors can no longer harass them or try to collect any remaining amount. Chapter 7 bankruptcy was discharged debts effectively. Another kind of bankruptcy filing can also appear for bankruptcy car loans approval. Chapter 13 bankruptcy Unlike other bankruptcy, borrower gets a respite with Chapter 13 bankruptcy proceedings. Borrowers get a chance to restructure debts. Court appointed trustee helps work out a repayment plan over 5 years. This legalization process puts an end to creditors harassing borrowers. You may get on with your life once you have cleared all doubts of being able to make good on your past loans. READ What is Impact of GST on Gold?Courts usually allow debtors filing bankruptcy to retain at least one vehicle. You may choose to drive a less expensive and easier to maintain vehicle. That brings us to qualifying for bankruptcy car loans. Subprime auto loan lenders prefer Chapter 7 bankruptcy discharge less as compared to Chapter 13 bankruptcy. Car buyers seeking auto loan after this bankruptcy will face some tough things to overcome. On the other hand, bankruptcy car loan lenders are easy to satisfy with a permission letter from court appointed trustee in Chapter 13 bankruptcy discharge. This indicates new monthly car payments fit in with current budget and repayment schedule of past debts. Bankruptcy Car Loan – Get the Car despite Bankruptcy Bankruptcy car loans provide auto finance necessary to change or get a new/used vehicle after successful bankruptcy discharge. Lenders view borrowers as debt-free albeit with some risk reservations. One thing working in your favor is lenders expect borrowers to stick to their monthly car payments. Borrowers will not be able to shirk of this auto loan with another bankruptcy. Shopping around or going online with companies such as www.CarLoanz.net will find what you are looking for. Apply stating credit history clearly and transparently. Valid reasons for filing bankruptcy work to get approvals for bankruptcy car loans. It may be a little difficult but not impossible to get auto loan after bankruptcy. If you want to buy a new/used car after your bankruptcy then don’t be overly concerned about your financial history.