Can I Get an Auto Loan with a Chapter 13 Bankruptcy?
05/05/2009 - By Andre Leftwich
To qualify for an auto loan while in a chapter 13 bankruptcy you must obtain an authorization from the trustee of the bankruptcy. The authorization should include the monthly payment amount.
Without the authorization from the bankruptcy trustee lenders will not even consider the loan. This fact is, if a lender was to approve an auto loan for a person in bankruptcy without the knowledge of the trustee the consumer could add the new auto loan lender to the list of creditors in the bankruptcy.
An authorization to incur debt does not guarantee that a lender will approve the loan.
Most lenders will not finance a person in bankruptcy. The few lenders that will approve an auto loan while in bankruptcy usually wants the consumer to have completed two thirds of the bankruptcy.
Can I Get an Auto Loans with a Chapter 7 Bankruptcy
It is easier to obtain an auto loan if you file a chapter 7 bankruptcy. Unlike a chapter 13 bankruptcy a chapter 7 relieves the consumer of all the debt included in the bankruptcy. Many Auto lenders will consider lending money to people that have just completed a chapter 7 bankruptcy.
