Near Santa Ana Auto Dealers Can Get You A Car Even With Bad Credit

If you live near Santa Ana and you have had to file for bankruptcy, then it can be a sobering and discouraging experience. You know that with this drastic action will have to come some changes in your life, including a new era of fiscal responsibility. But what does this mean if you want to get yourself a used car near Santa Ana auto dealers? Can you still realistically go to them in the hopes of securing a dependable vehicle?


It’s Still Possible to Secure an Auto Loan After Bankruptcy

The short answer is that you can indeed still get an auto loan if you have declared bankruptcy, Santa Ana residents. Doing so is a great way to rebuild your credit after you have wiped out all of your debt.

There are two distinct varieties of bankruptcy: Chapter 7, and Chapter 13. Chapter 7 wipes out all of your debt and gives you a clean slate. The process only takes a few months from start to finish. Chapter 13, meanwhile, creates a manageable plan for you to pay off your debt, typically over 3 to 5 years. It is the Chapter 13 variety that is becoming more common, while Chapter 7 has become an option that more people are trying to avoid.

If You’ve Filed for Chapter 7

If you have filed for Chapter 7 bankruptcy, then you should wait to apply for an auto loan until after you have had your 341 hearing. This is where the judge reviews your information and agrees to wipe out your debt. Your credit at this time will be very low, and it will be a challenge to go to the auto dealers near Santa Ana and successfully negotiate for a car.

There are still some lenders who can work with you, though, and you should be able to get that loan. However, you won’t be able to get the low-interest rates to which people with better credit have access. Still, you’ll get yourself a car, and if you’re very careful about making the payments then this is a way for you to gradually rebuild your credit.

If You’ve Filed for Chapter 13

Those who have filed for Chapter 13 bankruptcy should also wait to apply for a loan until after their hearing. Once it has been completed, the best thing to do is to contact your attorney or bankruptcy trustee and tell them your intentions of applying for an auto loan. You need to get a signed Authorization to Incur Debt from them. They should give it to you, though, because of the perceived necessity of having a vehicle.

The document given to you by the bankruptcy trustee will lay out in specific terms how much of a maximum monthly payment you are allowed to take on. You can use it when you secure a loan, and then you can start shopping around at the auto dealers near Santa Ana.

Bankruptcy can be a fresh start, and it isn’t the end of your life by any means. As long as you commit yourself to financial responsibility moving forward, you should find yourself on more secure footing after a little time has passed.

Categories: Car Dealerships
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