Bad Credit Auto Loans – Buying a Car After a Bankruptcy Chapter 7 Or Chapter 13 Discharge

You can get a car loan after your bankruptcy discharge. Whether it was a Chapter 7 or a Chapter 13 filing, there are places that you can apply for a loan to buy a car and get approved through easily. You probably know though, it’s not going to happen just anywhere that you go.

Usually car dealerships have a few lenders that they send post bankruptcy auto loan applications to. The stipulations can be frustrating, having to come up with a copy of your light bill and prove everything about yourself including your mother’s maiden name. This is common and what is even more common, is that these lenders that some dealers use, can’t get you approved for anything reasonable at all.

I’ve seen customers fresh out of a bankruptcy that have to pay car loan interest rates as high as 29%. That should be illegal. If a customer has a decent income and can obviously afford to buy the car and handle the car payment, there should be no reason for them to have to pay such a high amount.

In the case of Chapter 7, your unsecured debts have been discharged and your secured debts should be straight. With a Chapter 13 case, you’ve proven that you’ve made the effort for at least 3 years to pay back those things that you could. So having a recent bankruptcy can be a sign of responsibility and making an effort to start fresh.

Luckily for those that know about it, there are some lenders that specialize in helping people after they’ve had a bankruptcy. There are special finance programs for people that have had bankruptcy, repossession or other credit obstacles. While most mainstream lenders will want to see re-established credit, these special finance lenders are your source for getting that first good auto loan to buy a car after a bankruptcy discharge.

Post bankruptcy auto loans are available through special finance companies. You should use a good, legitimate company such as the one found at our site. By using the right kinds of lenders, you can be on your way quickly to not only getting approved, but being able to have payments and terms that are affordable.

Best of luck on your way,

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