Car loans during bankruptcy are a little different than car loans after a bankruptcy. If you are still in the process of going through the bankruptcy and have not yet received the discharge, an auto loan may take a little more work on your part.
This article is going to discuss a few helpful hints for car loans during a bankruptcy. There are additional things that need to happen in order to apply for an auto loan with these circumstances.
First, let me briefly explain the process of a bankruptcy. Most often someone will retain an attorney to file bankruptcy. Once the bankruptcy has entered the court system, the court will assign an estate trustee. Now you have a legal team working together to work through the resolution of your financial debts.
In order to see the greatest benefits for finding a fresh new financial beginning, it is a good idea to use the expertise of this legal team. Their advice and opinions can truly help you in getting your feet back on the ground and start reestablishing your credit right away. There is no need to wait to start over and start building your credit score back up again.
When considering an auto loan during bankruptcy you may want to present your situation to your legal team and allow them to guide you through the best process for getting a car loan. Your court appointed estate trustee has access to both your income and your monthly bills.
Once the estate trustee sees that you will have the room in your monthly budget for a car loan, he can write a letter of permission for obtaining a car loan. This letter will be attached to your bankruptcy papers and presented to the judge. In addition, this letter will provide permission to prospective lenders that it is okay to give you a loan.
If you are trying to secure an auto loan during a bankruptcy, this permission is critical to the dealership.
It is best to be up front and honest with the auto consultant who is helping you. Meet with someone who specializes in subprime auto loans and explain that you are looking for an auto loan during your bankruptcy. Present the letter of permission to the person helping you and allow them to begin working for you.
You may be surprised to find out what your options are and that you may be able to qualify for a car loan the day after you file bankruptcy.