Auto Loans After Chapter 7 Bankruptcies Can Be Tough

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More and more people are being forced to file Chapter 7 Bankruptcy. It's not something that anyone just wakes up one morning and decides to do. It's a gut wrenching decision that usually comes after months or years of troubled finances.

Chapter 7 Bankruptcy does give you an advantage over others that have filed Chapter 13. Under Chapter 7, you've had all of your unsecured debt discharged and have only kept the loans active for things that you need to keep. You shouldn't have anything lingering or any collection accounts and your debt to income ratio is improved, meaning that you have more free cash each month.

It should be a sigh of relief for you to get out from under the stress of all of that debt that you once had.

Now, you need a fresh start.

Auto loans after chapter 7 bankruptcy are easier to get than if you had filed chapter 13. The reason for this is because you can't file bankruptcy again for 7 years, whereas under chapter 13, you could refill any time.

This is definitely something that lenders will consider when reviewing your application.

Showing that you had a legitimate reason for filing is very important.

There are a couple popular sources online where you can get auto loans even with a CH 7. One of them is here and the other is here.

Both of those sites are highly recommended for anyone looking for reasonable interest rates and the least amount of down payment, if any should be required.

As stated, having a reason for filing makes a big difference in getting a good decision on your application. Also, being able to show that you have a good bit more monthly income than monthly expenses is a major plus.

People with recent BK's usually are in a better position to pay their bills on time, so don't be discouraged from pursuing auto finance. It's more difficult going through a dealer or a traditional bank, although there are really good sources of loans on the internet and sites that will put you together with lenders that will work to help you overcome your recent financial troubles.

Thank you for reading.

I hope that I've provided good resources for you to use in getting your auto loan approved!