The type of bankruptcy protection that you filed for or will file for will make a big difference in the speed with which you will be able to rebuild your credit file and qualify for loans even car loans. Car loans for bankruptcy are not as small and easy to be approved as they appear to be under normal circumstances.
What type of bankruptcy is available?
Prior to applying for car loans for bankruptcy or let us say any kind of bankruptcy auto loans, it is very much important to know what kind of bankruptcy are you dealing with and what could be the consequences of each one. Every bankruptcy is sole in its own way; however most bankruptcies fall under two broad types – Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Under a Chapter 7 bankruptcy incident, the property and assets of the debtor are sold and the profits of your possessions are divided among the creditors or lenders that you chose to include in your bankruptcy. Once your creditors have got their split of the income from the possessions that are sold during Chapter 7 bankruptcy, your creditors can no longer collect on the debt that you owe them. This debt is said to be the discharged debt. There is also other kind of bankruptcy that is likely to be involved in the bankruptcy auto loans.
The chapter 13 bankruptcy allows a borrower to restructure their debts by working with a trustee who forms a payment plan that is paid over a period of five years. Your qualifying for a bankruptcy auto loan will be strongly dictated by which chapter of bankruptcy that you filed. Those who have filed Chapter 7 bankruptcies would face o hindrances in qualifying for this type of loan; on the contrary, those who have filed for Chapter 13 bankruptcies, will have to meet with their trustee and be approved to take out a car loan for bankruptcy according to the budget and the repayment plan that has been set up through the court for their debts.
Bankruptcy car loan – Get the car despite bankruptcy
If you have had your debts discharged under the Chapter 7 bankruptcy, you are well eligible to apply for and be approved for a bankruptcy car loan. You have a new appeal to certain lenders because you are now debt-free, regardless of how you got there. Lenders are well aware of the fact that you cannot file another bankruptcy proceeding for a specific number of years, and this makes them more willing to trust that you will honor the terms of your bankruptcy car loan.
So just go and shop around, find the right car loans for bankruptcy, find the right dealers and car loan lenders like http://www.CarLoanz.net, study the plan and make sure put forth your credit history clearly, without any ambiguity. Basically, what you need to do is put forth your past payments and credit scores and a document exhibiting the reasons for you are applying for bankruptcy. When you find the right price down, negotiate till you get the best price from the bankruptcy auto loan lender. Keep in mind that it is never difficult to get a car loan after bankruptcy. All you need to be is a little wise and patient and shrewd in your dealings.