Call for a free bankruptcy consultation

Louisville |

502-485-9200

New Albany |

812-945-9200
Schwartz Bankruptcy Law Center

New Car Loans In Bankruptcy

If you have entered the Louisville bankruptcy process and are in need of a car there are some things to consider about the timing of your new loan and how your bankruptcy will affect getting this loan.

Chapter 7

One of the reasons Chapter 7 bankruptcy is appealing is its quick nature. Usually a person can have their debts discharged in as few as six months. While having debt eliminated in a quick turnaround would be nice, many car loan lenders won't approve a car loan until after the case is complete at the time of the discharge. Further, some lenders are hesitant to lend to post-Chapter 7 consumers simply because of the nature of their prior financial situation leading to filing the bankruptcy. However, this isn't to say chances of car loans in or after a Chapter 7 are zero; just that it could take some time before your credit profile allows for the approval of another loan.

Chapter 13

A Chapter 13 bankruptcy is a slow and steady approach to debt relief. Taking up to five years before a debt discharge can throw a wrench in the plan of getting a car loan after the case is complete. However, most lenders are willing to offer car loans to active or post-Chapter 7 consumers, as long as you can provide (1) documentation of the 341 Meeting of Creditors and approval to wipe your debt, and (2) documentation of the Trustee's approval to incur more debt during the bankruptcy. If you can meet these requirements and sustain a monthly loan payment you might just be on your way to a car loan in bankruptcy.

No Comments

Leave a comment
Comment Information
Make A Payment Email Us For a Response

Need A Solution To Your Debt Problems?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Make A Payment
Schwartz Bankruptcy Law Center

Office Locations:

Louisville Office
3339 Taylorsville Road
Louisville, KY 40205

Phone: 502-485-9200
Fax: 502-485-9220
Louisville Law Office Map

New Albany Office
501 State Street
New Albany, Indiana 47150

Phone: 812-945-9200
Fax: 502-485-9220
Map & Directions

Phone:

LOUISVILLE |

NEW ALBANY |

Fax: