Car loans can be hard to secure with good credit, and even harder if you are in bankruptcy and need to finance a vehicle. Here at Bankruptcy Auto Finance we are the leading auto finance company for bankruptcy and we can help you get approved in bankruptcy.
We have a network of special finance lenders in Houston that work specifically with bankruptcy clients. If you meet their minimum requirements they are willing to grant a loan to those looking for open bk car loans in Houston, TX.
Open Bankruptcy Car Loans before Discharge Process
Regardless of whether you are looking to get an auto loan with open chapter 13 or chapter 7 bankruptcies there is a long process before an application can be submitted. Keep in mind you might also be required to have a substantial down payment.
- Chapter 13
- After looking at the applicant's debt and income the bankruptcy judge will lay out a payment plan to repay a portion of their debts back to the creditors. The plan is usually set for a three to five year period. Before a lender will even look at an application the debtor must obtain a letter from the judge granting permission to obtain a new line of credit. To do this, they must prove to the judge that they can afford to take on a new loan. After this is obtained an application can be submitted to the lender and the borrowing process can begin.
- Chapter 7
- Chapter 7 bankruptcy in a liquidation plan in which the bankruptcy trustee liquidates the debtor's assets to repay their debts to the creditors. This is usually done over a two to three month period and it is over. If in that short amount of time vehicle financing is needed the debtor will need to prove the bankruptcy court why it is a necessity and that they will be able to afford the new debt. Even with permission from the judge a lender might require a discharge because of the short amount of time it takes.
Getting a Car Loan in Houston after Bankruptcy Discharge
In some cases Houston lenders advise waiting to be discharged from bankruptcy before applying for a new line of credit. This is because getting chapter 13 and chapter 7 open bankruptcy auto loans in difficult and comes with higher interest rates and large down payments. If it is at all feasible, save money and apply for an auto loan once you receive your discharge papers from the judge.
Being discharged from bankruptcy shows a clean slate and that good has been made of all debts. Because of this the lenders in Houston, Texas may be more lenient when it comes to the down payment if you have been discharged from bankruptcy. Whatever the case, we are there to help. Apply online today to see if you are preapproved.
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.