The timing of when you apply for a bankruptcy car loan is slightly different depending on the type of bankruptcy filing you make.
If you’re filing for Chapter 7 bankruptcy, the timing is easy. As soon as your case has been filed with the bankruptcy court and you have a court-assigned case number, you can apply for a bankruptcy car loan.
If you’re filing a Chapter 13 bankruptcy, however, the timing is little different. Because a Chapter 13 bankruptcy involves a payment plan put together and managed by a court-assigned bankruptcy trustee or judge, you have to wait a little longer before you can apply for a bankruptcy car loan. Specifically, there are two things that have to happen before you apply for the loan. First, your Chapter 13 bankruptcy repayment plan has to have been finalized and approved. Second, if you want to take on new debt, it has to be approved by the bankruptcy trustee or judge assigned to your case. You’ll need to work with your bankruptcy attorney to add a new post-petition debt to your case. The bankruptcy trustee or judge will review the request to make sure it’s going to work for you within your payment plan. Because most people need a car, your request should be granted as long as the court thinks you can handle the extra payment in your plan.
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At Day One Credit we are experts at finding the best possible bankruptcy car loans in order to help our customers purchase high-quality used cars. We are not lawyers, we do not give legal advice, and nothing we say should be taken as legal advice. Your first step in anything related to bankruptcy should always be seeking the advice and counsel of a qualified bankruptcy attorney.