To understand how Chapter 7 Bankruptcy Auto Financing programs work, first it is important to understand the bankruptcy process.
When someone files for bankruptcy, they list all of their creditors that have secured and unsecured claims. About 30-days after the filing date, comes the meeting of creditors (also called the 341 meeting). At any point after the 341 meeting has occurred, WA Auto Credit can help people get a Chapter 7 Auto Loan.
There are basically 2 different types of Chapter 7 Auto Financing:
The first type of Chapter 7 Auto Loan is designed for people that meet the following criteria: 1. Had a previous auto loan paid as agreed for at least a year; 2. Have w2 income (not self employed) ***Correction***We now have a great lender for Self Employed with Bankruptcy too!!; 3. Have an acceptable Debt-to-Income ratio (DTI) to the lender; 4. Are willing to buy a newer vehicle with low miles; 5. Have an OPEN (or recently discharged) Chapter 7 Bankruptcy; 6. Current on your mortgage or rent.
If you either do not meet the lenders requirements, or you are only willing to buy an older vehicle (or one with high miles) then you would have to go with the second type of bankruptcy auto loan. The alternative bankruptcy auto loan loan always requires down payment. Exactly how much down you will need will depend on many things. It will depend on your credit rating before your bankruptcy, the EXACT vehicle you are going to buy, the term of the loan, and the interest rate will all influence the down payment needed.
WA Auto Credit has Guaranteed Credit Approval through Credit Acceptance. If you visit our Olympia, WA office we will get you approved for a bankruptcy auto loan. We will help you decide which bankruptcy auto financing option is better for you. We will help you find a vehicle that meets the lender requirements, and that can work for you financially. Apply for Bankruptcy Auto Loan at WashingtonAutoCredit.com.