Bankruptcy Financing
The All Star Credit Team at Olympia Auto Credit is the only place in Olympia to buy a car if you have a recent bankruptcy. Many of our bankruptcy auto financing programs even allow their customers to buy a vehicle with no money down. We have been doing bankruptcy auto loans since 2003.
Open Chapter 7 Bankruptcy
We have programs to help you buy a car BEFORE you discharge, and even BEFORE your 341 Meeting of Creditors. The sooner you start building your credit again, the sooner you can put your bankruptcy behind you.
Open Chapter 13 Bankruptcies
In some ways, Chapter 13 Bankruptcies are like Chapter 7 Bankruptcies. They both show up in the same place you your credit, they both stay on your credit for about 10-years. And, they are both looked at very negatively by most dealerships and lenders.
In other ways, Chapter 13′s are very different. You are actually in a re-payment plan for 3-5 years (unless it gets dismissed for non-payment or converted to a Chapter 7). While you are in the Chapter 13 plan, the court/trustee has control over your finances. In fact, you cannot get a car loan (or other debt) without their permission.
In Washington, you have to get a Motion to Incur Debt signed by your judge. Typically, the motion will say that JOHN DOE can buy a car with a payment no higher than $XXX.XX and an amount financed no higher than $XX,XXX.XX. Some attorneys throw a wrench in the process by stipulating a maximum interest rate on the motion. This is usually a bad idea, just because if you do not qualify for that maximum rate, then you have to get a new motion. The motion process usually takes about 1-month.
Discharged Chapter 7 and Chapter 13 Bankruptcies
Are your loan options different after your discharge? Yes.
Are your loan options better after you discharge? Not usually.
No matter what, the lender will have a great deal of input as to what vehicles you will qualify for. Your credit will not change very much in the time between your court date and your discharge. Since your credit rating will still be the same, and since you still have a recent bankruptcy, you will typically not qualify for better loan programs. The best thing you can do to improve your credit rating is to take out a new installment loan and make payments on it over time. INSTALLMENT LOAN, not Credit Card. HUGE DIFFERENCE. The loan shows a greater ability to pay, as well as improving your credit faster.