If you’re filing for a chapter 7 bankruptcy in Iowa and own a vehicle that is worth a pretty penny you may be forced to turn the vehicle over to your bankruptcy trustee to repay your creditors. So what are your options to getting a new car? Well, you can apply for a bankruptcy car loan during or after you receive your discharge papers. However, it may be less of a hassle for you to wait until after your bk to get a new loan.
Post-Bankruptcy Iowa Easy Auto Loans
Getting a post bankruptcy car loan is typically easier once you have been discharged from you the bk process. While many Iowa lenders we work with accept bankrupt clients before they have successfully completed the process; it tends to be more work for you and for the lender.
For an open bankruptcy car loan you must plead your case to the trustee explaining why you need to finance a car and why it can’t wait. Then the trustee must go to the judge and ask for a letter to incur additional debt. At any stage either the trustee or the judge and turn down your request, but if they approve of the purchase it could take a few weeks to get the letter to you.
Iowa lenders also prefer for you to be discharged because they know that the law prohibits you from filing for bankruptcy for up to 8 years after the previous one. Since most cars are generally financed for no more than six years they are counting on the car being paid in full before you could have the chance to file a personal bk again. This being said, if for some reason you can’t your payments on the bankruptcy auto loan then they still have the vehicle as collateral and can repossess it at any time.
Finding the Right Iowa Subprime Lenders
You could easily walk into your local used car dealership and ask them for a loan and you may even be approved. Unfortunately, doing so may get you poor loan terms and outrageous interest rates making you unable to afford the vehicle.
Here at BankruptcyAutoFinancing.com we work with a network of Iowa subprime lenders that specialize in vehicle financing before, during, and after bankruptcy. They have both the tools and the experience available to help you get into a car that is affordable for your budget and will meet all your needs. To get back on the road apply online today.
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.