A Chapter 13 Bankruptcy Auto Loan
Getting financing for a new vehicle while you are in an active Chapter 13 case is almost impossible. Yes, some people do it but it is an extremely difficult process.
Step one is finding a dealer who is willing to finance a vehicle in an active bankruptcy case. The next step is to get court approval. The court approval process will take at least thirty days. The wait for court approval is the reason most lenders do not want to deal with active Chapter 13 cases.
A Chapter 7 Bankruptcy Auto Loan
A Chapter 7 bankruptcy is a liquidation in which your debts are wiped out and you get a “Fresh Start,” except that your bankruptcy filing stays on your credit reports for up to a decade. This could cause concern for people considering Chapter 7 bankruptcy and wondering about their next car and how to pay for it.
An Open Chapter 7 Bankruptcy Auto Loan
Trying to get an auto loan while you are in an active Chapter 7 case is just plain stupid. Most Chapter 7 cases will discharge and close out within 90 days of the filing. It is much better to wait until the case is discharged.
A Car Loan After Discharge of Chapter 7 Bankruptcy
Once your Chapter 7 bankruptcy has been discharged, you are in a better position to finance a car with a bankruptcy lender. The goal of a bankruptcy car loan is to secure a reliable automobile with a payment plan that fits comfortably within your budget. Remember, you still have options, in spite of the bankruptcy. It is good to do comparison shopping to find the best vehicle and for the most reasonable rate you can get.
A person can get a Chapter 7 discharge only once every 8 years. Anyone buying a car after completely a Chapter 7 bankruptcy should proceed with extreme caution because if things go wrong, this car creditor could have potentially 8 years to take a bite out of you. If someone does get into financial trouble after a Chapter 7 discharge, Chapter 13 is an option. However, to receive a discharge in a Chapter 13, the case must filed 4 years after the Chapter 7 was filed.
Contact The Law Office of Jeffrey B. Kelly
If you need a bankruptcy attorney, we invite you to get in touch with us at The Law Office of Jeffrey B. Kelly. Since the inception of our law firm in 2006, we have filed more than 5,200 bankruptcy cases. With us handling your bankruptcy, you will always be able to speak directly with a bankruptcy attorney, should a situation arise during your case. Contact The Law Office of Jeffrey B. Kelly by calling (770) 809-3099 today if you live in or near any of our Georgia locations, which include Rome, Dalton, Kennesaw, Dallas, Cartersville, and Marietta. We can provide the legal representation you need and answer any questions you have about a bankruptcy car loan in Georgia.