Are you living in St. Louis and looking for Chapter 13 auto loans? Well, you are not alone. Because of the economic recession there are many Americans left declaring bankruptcy, and seeking auto loans after bankruptcy. We are here to tell you why a chapter 13 St. Louis bankruptcy may be better for you than a chapter 7, and help you get the financing you need with bankruptcy on your credit.
Cram Down your Chapter 13 Auto Loan in St. Louis
You could save a lot of money on your St. Louis auto loan in a chapter 13 bankruptcy if you are eligible to cram down your loan. This means you may buy the vehicle from the lender for the retail value. Basically if your loan balance is $10,000, but the car is only worth $6,000 you can get another loan – or borrow from a family member/friend – and buy the car outright from the lender.
This all sounds too good to be true, right? Well unfortunately, for some St. Louis residents it is. You are only eligible for the cram down process if you purchased your vehicle more than 910 days (or 2.5 years) before filing for bankruptcy. This is to stop individuals from purchasing a car and then turning around, declaring bankruptcy, and including the car.
Dealers that Accept Bankruptcy
If you are ineligible for the cram down process, you may have to surrender your car into the bankruptcy because it is just too expensive. If that is the case then we are here to help. There are St. Louis auto dealers accepting chapter 13 bankruptcies and willing to give you a second chance.
Although, we are not the direct lender our network of St. Louis dealers understand that mistakes happen and in today’s society they are happening more often. Apply online today to see if you are preapproved and we will match your information with a St. Louis lender near you.
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.