Getting Auto Loans While in Chapter 13 Bankruptcy

Standard

Auto Loans While in Chapter 13 BankruptcyA lot of people are under the idea that once they become bankrupt it takes away their ability to get anything on loan. However, that may not always be true. You can get a car loan even when you are embroiled in a bankruptcy case or are in the process of being declared one. However, when people are going through tough times such as Chapter 13 bankruptcy they may wonder how they are going to make space for a car loan. They however should not think that they would not get car loans while in chapter 13. It would be wrong to think so.

Chapter 13 is a form of bankruptcy that is also known as reorganization bankruptcy. With this plan, people who have a steady income and a certain amount of debt that is over a prescribed limit to pay off these debts over a period to three to five years as part of a structured payment plan. They can do this by using certain parts of their income. You can indeed get auto loans while in Chapter 13! This form of bankruptcy will allow you to keep hold of your own property. However, it will also lead to financial obligations that you have to meet.

In case of Chapter 13 bankruptcy you already have a strict payment plan. Now the question is how do you fit in your loan payment in this schedule? In such cases you first need to discuss with your lawyer and your trustee. You can be sure that your creditors will never like the idea of taking on one more loan in such a precarious financial condition. This is where chapter 13 bankruptcy car loans can make such a difference. You will need the advice and approval of these individuals before you can take the next step.

Here, you need to be able to show a few things. First of all, you need to convince them that your present car is not exactly in the best-possible state and it needs to be replaced. For more information on getting a car loan during chapter 13, please look up autoloanbadcredittoday.com