Chapter 13 Auto Loans
Getting an auto loan while in a Chapter 13 Bankruptcy is a not out of the question.
If you have been in Chapter 13 BK, you know that the Bankruptcy Court and the Trustee basically have total control of your finances. In most states, in order to get an auto loan for a vehicle while in your Chapter 13 Bankruptcy, you have to obtain a letter from the Trustee granting permission to buy a vehicle outside of your repayment plan or obtain signed Motion to Incur Debt. If you have obtained more income at work since the BK and or paid off certain creditors you should be able to do this. Now, in most cases, You will have to contact your trustee or a trusted Chapter 13 dealer like Best Choice Motors to get advice and to get the process started.
Example of some of the steps toward the Chapter 13 Auto Financing Process :
- You will want to contact a dealer who specializes in Chapter 13 Bankruptcy Loans (like Best Choice Motors)
- Have them review your bankruptcy and credit to figure what programs you will qualify for.
- We will look at our inventory vs. the lendors to determine 5-10 vehicles that would fulfill your needs and the lendors criteria.
- After choosing a vehicle, we prepare all of the paperwork (including contract, licensing documents, and buyer’s order) to give your attorney so that you can request specific permission letter from the trustee.
- Best Choice Motors will hold your car for up to 10 days allowing you time to get the permission letter. Without the motion to incur debt, you do not have a real approval or a real loan.
- We then get final approval from the lender and you can take home your new vehicle.
- While this may seem like a lot of steps it’s a process that Best Choice Motors is familiar with and can help you get into a new vehicle if you are in the Lafayette, IN area.
Best Choice Motors
Lafayette, IN 47905
|Monday:||10:00 AM - 7:00 PM|
|Tuesday:||10:00 AM - 7:00 PM|
|Wednesday:||10:00 AM - 7:00 PM|
|Thursday:||10:00 AM - 7:00 PM|
|Friday:||10:00 AM - 7:00 PM|
|Saturday:||10:00 AM - 6:00 PM|