How to Buy a Car During Chapter 13 Bankruptcy
Just because you're going through bankruptcy, doesn't mean you won't be able to qualify for a vehicle loan. There are lenders who will approve people in bankruptcy and we have a great selection of loan programs to help you get approved. While you'll more than likely have a higher rate of interest on your loan, as long as you make your payments on time you'll be rebuilding your credit and getting the vehicle that you need. The lenders we were work understand that bad things sometimes happen to good people. At Tacoma Car Credit we want to do everything we can to help you get the vehicle you need and get you approved for financing. The following are the steps you'll need to take when applying for an auto loan after Chapter 13 Bankruptcy.
1. Find a Dealer or Lender
This part is easy for you! Tacoma Car Credit is a qualified lender that will work to get financing for you, even after Chapter 13 Bankruptcy. You can try to get finance with a bank or credit union, but traditional lenders rarely work with bad credit car buyers.
At Tacoma Car Credit we look past your credit issues and work to get you financing. We have many loan programs that will work for you. We can even get you pre-approved instantly, online. Click here to get pre-approved now and we'll show you your credit score.
2. Get a sample financing statement.
When you work with one of the credit specialist at Tacoma Car Credit we will help you get all the paperwork you need to get approved. First, we will help you find a vehicle that falls into your price range. We will write up a sample financing contract or statement. This will list information on the car you hope to purchase, the price, loan terms, interest rate, monthly payment, and more. We will also list a next choice vehicle and include the highest possible interest rate you may receive.
The reason for this process is getting approved through the court may take some time. The car you may have wanted may be gone by that time you get approved through the court. Also, your motion to incur debt may be invalid if the interest rate you actually qualify for is higher than the one listed on your sample statement. Taking the extra step will help to prevent you from having to start this process over.
3. Take your sample financing statement to your trustee.
Take your sample financing statement to your court-appointed trustee. They will review and measure how much debt you're wanting to take on, against the potential impact it will have on your bankruptcy repayment plan. You will have to complete some paperwork for the trustee. Most of it will pertain to reasons why you need a vehicle. You need to be able to prove to the court that getting a car is necessary.
Your trustee will decide if the purchase is acceptable or not. They may also make adjustments to your repayment plan if needed. Then they will present it to the court.
4. Trustee files motion with the court.
Your trustee will file your motion to incur debt with the court. This will be sent to creditors and other parties involved in your Chapter 13 repayment plan. They will than be given a chance to object the motion. After you file your motion you may, or may not, have to appear for a hearing BUT if none of your creditors object, you may not need to attend.
5. Get approved, or denied.
The court will make their decision. If you're approved, to can head back to us and move forward with your vehicle purchase. If you're denied, come let us help you. The hardest part of getting a vehicle loan is finding a lender that is willing to help. At Tacoma Car Credit were ready to help you. We will do everything we can to simplify this process for you. We will help you find a vehicle and loan program that will let you get approved.
Have more questions? Check out our Frequently Asked Questions page OR fill out the quick form below and one of our credit specialists will contact you shortly.