One of the best ways to rebuild your credit after bankruptcy is to get a car loan and make the payments on time; however, if you are in open Chapter 13 bankruptcy you will have to get approval from the court. Although you may not want to go through the hassle of getting approval, it’s absolutely necessary before you take on additional debt. Not doing so could land you in hot water, and could even result in dismissal of your bankruptcy.
How to Obtain Approval to Incur New Debt
Generally the court will grant approval to incur new debt if you can prove that it’s necessary to complete your plan, such as buying a new car in order to get to work. There are a few steps that you will need to take:
- Make sure that you are current on your plan payments
- Work out the loan terms with the creditor
- Explain to your trustee why it is necessary
- If the trustee agrees, file a petition with the court
- Court approves the extension of credit
- Amend bankruptcy to show your ability to pay the new amount
- Obtain the loan, and the creditor will receive the full contract price
Open Bankruptcy Car Loans
When you need a car loan while in chapter 13, BankruptcyAutoFinancing.com is here to help. We have over 10 years of experience in bankruptcy car loan assistance, and have helped thousands of clients get the car that they deserve. Our network of thousands of dealers and lenders across the U.S. and Canada will get you the best deal around.
If you meet our very minimum requirements, don't wait any longer. Apply online today and you will be promptly contacted by a local bankruptcy auto loan specialist with your approval information. Then simply pick up your new car, and get back on the road to financial success!
Remember, we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.