Car & Auto Loans After Chapter 7 Or Chapter 13 Bankruptcy Discharge Or Dismissal
Obtaining a car or auto loan after a bankruptcy discharge or dismissal can seem challenging when you try to get approved at a local car lot. Here are some tips that you can use to better understand what you’re up against and a recommendation that will help you to obtain auto financing a lot easier.
If you have had a chapter 7 or chapter 13 bankruptcy that has been discharged within the last year, most all lenders are going to be very critical in regards to your credit history. You will find that at a local dealership it may be a serious challenge to get approved after a recent bankruptcy discharge. With a chapter 7 bankruptcy, the bankruptcy will fall off of your credit report after seven years. The same is true with a chapter 13 bankruptcy. That is only if it is been discharged.
On the other hand, if you have had a bankruptcy that has been dismissed then it will stay on your credit report for 10 years. Not 10 years from the date that you file for bankruptcy, but 10 years from the date of the dismissal. So, if you’re in a bankruptcy for two years and it was just dismissed then the 10 year clock starts to run now.
There are legitimate sources on the Internet that you can go to to get a car loan after bankruptcy discharge or dismissal. You certainly cannot expect to only pay a 4% interest rate, however you can obtain a reasonable financing with reasonable terms, based upon your individual situation.