Getting An Auto Loan After You File For Bankruptcy
Consumers on the look out for an auto loan after they file for bankruptcy often have to worry about predatory interest rates, unreasonable fees and unyielding terms. Many online lenders promise automobile financing that can seem a little too good to be true. Boasting that a potential borrower’s credit history is not a concern, some lenders promise speedy approval with few questions asked. Of course, the wise borrower will be sure to ask a good deal of questions before signing on the dotted line. Playing on the borrower’s fear and embarrassment, some of these lenders employ predatory practices. Careful comparison shopping when it comes to seeking Bankruptcy auto loans is a step that no consumer will regret taking. Individuals who have gone bankrupt may decide to file for either a Chapter 13 or a Chapter 7. The difference between these two methods of filing is rather straight forward. A consumer who files in the Chapter 7 category is basically giving up certain assets and walking away from many debts free and clear. With a Chapter 13 filing, the debtor wishes to work out a plan to attempt to repay back the money owed. By doing so, the debtor can hope to keep most assets. Whichever type of filing a debtor may have chosen, the availability of this financing is an important concern. Different lenders will have different terms and requirements for consumers who need Chapter 7 bankruptcy auto loans. Many lenders will require a minimum monthly income as well as a minimum credit score.
