Going through a personal bankruptcy is tough. You may feel like your life is falling apart, but the truth is that bankruptcy laws were created to give relief to people with unmanageable financial situations. It’s a chance for a clean slate, to rebuild your credit, and to start again.
Typically, individuals file for either Chapter 7 or Chapter 13 bankruptcy. Below is a brief overview of each kind of bankruptcy, as well as how to effectively get a car loan after a bankruptcy.
Chapter 7 Bankruptcy: Liquidation
Chapter 7 is the most common form of personal bankruptcy in the United States. These are often “no asset” cases because debtors are allowed to keep essential property. Occasionally, when there are assets to sell to help reconcile the debt, it can involve the appointment of a trustee who collects non-exempt property of the debtor, sells it, and distributes the proceeds to the creditors.
Chapter 13 Bankruptcy: Reorganization
Chapter 13 allows the debtor to keep some or all of their property and to use their future earnings to pay off the creditor. Debtors propose a repayment plan to make installments to creditors over three to five years.
How to Get a Car Loan After Bankruptcy
If you’ve gone through a bankruptcy, your credit has likely taken a nosedive. Generally speaking, this can be a difficult time to try to buy a used vehicle, as your debt-to-income ratio will be at its worst and you’re unlikely to get approved… at most places.
At Integrity Auto Finance, we don’t look at your credit score. We specialize in helping people with less-than-perfect credit get into the vehicle they want with payments they can afford.
We base our car loan approval on:
- Proof of income
- Oklahoma residency
- Valid driver’s license
There are special rules regarding car loans when you’ve gone through bankruptcy. Contact Integrity today to find out how we can help you.
Rebuilding Your Credit with a Car Loan
Making timely payments on a car loan is a great way to pull your credit score out of the abyss. Unlike most Buy Here Pay Here car dealers, Integrity Auto Finance reports to all three credit bureaus, ensuring that your loan payments will help rebuild your credit.