Getting a car loan during bankruptcy has lots of “ifs.” Whether you can get a loan’s first “if” is dependent upon if you have filed a Chapter 7 or Chapter 13 bankruptcy. With a Chapter 7 bankruptcy most lenders will only consider a loan after the bankruptcy has been discharged though there are a few who will consider an in process loan if the 341 meeting of creditors has taken place. With a Chapter 13 bankruptcy which involves a longer time period, the court appointed trustee must be approached and he must in turn approach the court to determine if any more debt will be allowed to be entered into. If the court permits it, one may explore chances of buying a car during bankruptcy. it may also dictate the terms of any such loan which may not be attractive to a lender.

For a Chapter 7 bankruptcy the soundest advice is to put off any car loan during bankruptcy application until the bankruptcy has cleared. Since you can only file bankruptcy every 8 years, the lender knows that you will not be able to file again for the life of the loan. Asking any lender to take on a credit agreement while you are still in the process of exiting earlier ones is not a great scenario and will probably only attract lenders whose rates will represent the risk they are taking. Once you have completed the bankruptcy, an auto loan can be a great way to start rebuilding the credit damaged by the bankruptcy.

Since a Chapter 13 bankruptcy involves an extended time period as you work to discharge your debts on a schedule which allows you to retain your assets by paying what you owe. It is far more likely that sometime during the process that you will need another vehicle. If you go through the proper steps beginning with the court officer who is overseeing your case, lenders will be more willing to consider providing auto loans during bankruptcy. Just remember that the court can set conditions on any loan you make during the process, including the length the amount and the maximum payment. These conditions can be difficult for a lender to accept. At LoanexFastCash.com we have lenders who are familiar with bankruptcy financing. They are specialists and if anyone can help you this is certainly a good place to start.