Auto Loans And Bankruptcy

Bankruptcy is a legal procedure that helps those coping with crushing amounts of debt. The more money owed to creditors, the more they fight to collect it. Filing under Chapter 7 removes most debts from credit reports, though debtors remain responsible for alimony, child support, and most student loans. Chapter 13 is another option, under which creditors reduce the amount owed.

Discharge removes a debt from the debtor's obligations. As soon as the court discharges a debt, the debtor no longer owes it, and the creditor can take no further action to collect it. During the case, the court looks at the Michigan debtor's assets and determines whether they can be sold to pay the debt. Surrender of a car on which the debtor still owes money reduces the total debt. Surrender is a good option for upside-down auto loans with balances worth more than the cars. Getting a new car after surrender before discharge is not easy but possible.

Detroit Car Credit offers bankrupt debtors a way to purchase reliable late-model vehicles affordable in upfront and insurance costs. Detroit Car Credit helps Michigan debtors get that car with an affordable car loan.

Filing can make debtors feel as if they never will get approval for another line of credit. Fortunately, Glassman Auto Group helps bankrupt Michigan clients find bad credit car dealerships to approve them for Detroit car financing. To be bankrupt isn't the end of the world but can be a new beginning to financial stability.

Bankruptcies remain open until debtors receive discharge orders from the courts. Open bankruptcy auto loans are available during this time with both Chapter 7 and Chapter 13 bankruptcies but with different requirements.

A chapter 7 case is open for three to four months. Before the debtor can apply for a car loan through any subprime lender, the creditor parties to the case must meet. This meeting allows the creditors to interrogate the debtor before the trustee or presiding officer. For several reasons, lenders want this meeting concluded before they consider Detroit car financing for debtors:

After this meeting, the debtor can add no new debts to the petition, so there can be no discharge of a new car loan. If the court dismisses the case for any reason, the debtor remains liable for the balance of the new car loan. The creditors have agreed to the terms and the discharged debts lower the ratio of debt to income and improve the loan risk. After appointment of the trustee following the creditors meeting, the debtor can apply to Detroit Car Credit for online pre-approval.

Under Chapter 13, the debtor has more leeway on auto loans. This process is much longer, usually from three to five years. The court sets up a payment plan based on assets and income, and the debtor repays a portion of the indebtedness over the term. To apply for financing of any kind during this term, the debtor must seek leave of court.

The debtor should submit a list of reasons why a new vehicle is necessary to support a motion to incur additional debt. The court may question the debtor about the vehicle and set loan terms and conditions. If the court grants the motion, the debtor has an authorization to incur additional debt and can apply online for pre-approval and visit a dealership

Proceeding on a new line of credit can be stressful regardless of credit score, but for a recent bankrupt stress can be immense. The debtor doesn't know whether to wait, for how long, or whether there is any chance for a car loan until after the bankruptcy comes off the credit report. At Glassman Auto Group there is no need to wait at all.

Many times it is not feasible to wait weeks, months, or years before assuming a post-bankrupt car loan, so the Glassman Auto Group , network of lenders can offer Detroit car financing right after discharge. We highly recommend pre-owned late-model cars, trucks, or minivans for their lower price tags, lower interest rates, and lower insurance costs.