Cars are an indispensable transportation tool for the average American – especially when living in counties where mass transit is expensive and hard to work with. You may find yourself facing (or already are in) the process of bankruptcy – a very painful and traumatic experience – but that does not mean you have to sacrifice your ability to move around when you need it the most.
The first thing you need to do to secure an auto loan while filing for bankruptcy is to determine the kind of bankruptcy you’re filing.
If you’re filing a Chapter 7 bankruptcy where you liquidate your assets to pay off your debts, then you will want to run through a means test. Passing through the means test will get you a 341 meeting of creditors, which in turn will help you in your application for a bad credit auto loan.
If you’re filing a Chapter 13 bankruptcy where a court-appointed trustee sets up a payment schedule for you, then you will have to ask the trustee to petition the court to allow you to incur additional debt. If the petition is green-lit, then you will be allowed by the court to borrow up to a certain amount at a certain maximum interest. You’ll need this court order to secure an auto loan on bad credit.
No Comments so far ↓
There are no comments yet...Kick things off by filling out the form below.