If you had to surrender your car because you weren't eligible to cram down the loan, you are probably wondering if it's possible to get an auto loan in chapter 13 bk. After all, you can't wait 3-5 years to buy a car, and you don't want to risk purchasing an old junker from a private seller. Although it will take a little bit of effort, it is possible for you to get the financing you need.
How to Receive Bankruptcy Open Chapter 13 Auto Loans
Obtaining an open bk car loan requires a few more steps than it normally takes to get auto financing. You shouldn't let this scare you though. These steps ensure that you don't take on more debt than you can handle, once again putting your finances at risk.
In order to get financing you must get an Authorization to Incur Debt. This authorization is granted by the bankruptcy court. You must be current on your repayment plan and show your trustee why the debt is necessary, such as needing a car to get to work or school.
Your trustee then files a petition with the court. If the court agrees that the debt is necessary, they will approve the extension of credit, and your bankruptcy will be amended to show that you can pay the new debt. You can then obtain the loan from your new creditor.
Need Help with Bk Auto Financing?
If you need help with bk auto financing, you have come to the right place! Bankruptcy Auto Financing has helped thousands of people throughout the United States and Canada get the financing they need during and after bankruptcy. By filling out our easy online application, you can get pre-approved today.
Once you're pre-approved, one of our bankruptcy loan specialists will match you with a local dealership accepting bk clientele. You'll be able to pick out a pre-owned car, truck or SUV that fits your budget. As soon as you receive your Authorization to Incur Debt you can drive your new-to-you car off the lot.
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.