Wednesday, January 5, 2011

What Are The Means To Get Bankruptcy Auto Loans?

As the new bankruptcy laws took effect on October 17th 2005, some Americans were permitted to file chapter 7 bankruptcy while others were forced to choose chapter 13 bankruptcy. Bankruptcy car loans were permitted in both the cases. To get more information about car loans after bankruptcy one can also contact LoansStore,

Chapter 13 bankruptcy car loans
To qualify for chapter 13 bankruptcy auto loans, one should have an authorization to incur debts from their trustee of the bankruptcy and it should also include the monthly payment amount. If a person doesn’t have any kind of authorization from their trustee than their loan won’t be considered and they would be rejected. This is because if a lender is approved for a bankruptcy auto loans without prior knowledge of his trustee than the consumer can even provide new lender for auto loan to the creditor list.
An authorization letter doesn’t guarantee that the lender will approve for after bankruptcy auto loans. Most of the lenders don’t prefer to provide auto loans to those who are bankrupt. Only few lenders approve the application of those consumers who have completed two third of their bankruptcy and are near to discharge.

Chapter 7 bankruptcy auto loans
There are many auto finance companies which provide auto loans after chapter 7 bankruptcy. Chapter 7 bankruptcy helps people to relieve all their debts and get a fresh financial start. There are lenders who even lend money to those people who have just got discharge from chapter 7 bankruptcy.

These lenders don’t lend money directly to their consumer but they offer the services to other car dealers and they provide bankruptcy auto loans.  These dealers also provide other types of loans like no cosigner car loans to the needy individuals. Prior, those people who declare bankruptcy were not able to get auto loans in any condition. But now the rules have changed and that has helped people to get auto loans even when they are bankrupt.