If you file Chapter 7 bankruptcy as a homeowner with a mortgage, you’d have to reaffirm your debt. A reaffirmation of debts is a legal agreement between you and your creditor that holds you responsible for repaying a specific debt during and after bankruptcy. You must be current on your loan payments to be eligible for a reaffirmation agreement. I searched for an hour and unable to find Bankruptcy Friendly Auto refinance companies on this forum. I found plenty for non-bankruptcy consumers. I have a current auto loan 19k at 14% interest and I am looking to refinance in the next months pending a credit score jump to over Jan 09, · How to Refinance Bankruptcy Auto Loans. Get Car Financing Even with poor credit. -January 9, Refinancing a bad credit car loan can help you save money with a lower monthly car payment by reducing your current interest rate. It can be quite simple to refinance if you will do some research and adhere to a few guidelines.
Related videosWhat happens to my car loan in bankruptcy?
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Search instead for. Did you mean:. Valued Member. Labels: after bankruptcy Auto refinance Bankruptcy Car Loan rebuild. Message 1 of 4. All forum topics Previous Topic Next Topic. Frequent Contributor. Message 2 of 4. What was your credit score when you were approved? You might think that you are able to refinance a special car loan after bankruptcy once your final payment has been made.
However, this does not always mean that the bankruptcy term is removed from your credit report. That is why it's important to get a copy of your report immediately to verify it's removal. If left unchecked these marks can stay on for various lengths of time.
All you have to do is call a credit reporting agency like TransUnion, Equifax or Experian, who can give you a better sense of when the bankruptcy is going to be removed. Perhaps you have discovered that the mark is going to rest on there awhile. When you bought the car, you went through the proper process of a pre-approval with our lenders, and you feel you should be rewarded for your good faith efforts.
Well, people generally obtain second chance car loans for two reasons:. The second choice will likely still be available to you. By increasing the number of months in your agreement, your payment amounts should start to drop quite soon. You may be wondering why you are not a candidate for the interest rate reduction.
Well, when you have a car loan , your interest rates are heavily based on your credit scores. If you fail to pay back your loan, the lender has full authority to repossess the vehicle. Although bankruptcy will remove your obligation to repay your debts, including loans and credit cards, it does not remove the rights of the dealer or lender to seize any secured property included in your discharged loans.
But there are a few ways you can keep your vehicle during bankruptcy proceedings. If your payments are current when you initiate the bankruptcy, you can work with the dealer to continue payments and not include the loan in your bankruptcy filing. That will keep the loan current and allow you to retain your vehicle. Another option is to forego Chapter 7 bankruptcy and instead file for Chapter 13 bankruptcy. If you want to improve your chances of finding an affordable loan, follow these tips.
If your recent bankruptcy has you receiving loan rejections, you can attempt to add a cosigner to your loan application. This requires someone with good credit to vouch for your ability to repay the loan and sign on as a guarantor on your application. This is a tricky situation because you both will take a hit to your credit scores if you miss a payment or default on the loan. Such situations have caused many conflicts in the past, so be certain you can repay the loan before entering into a cosigning agreement.
The more you can put down, the better your odds of getting a loan approved. Most lenders allow down payments of a few hundred dollars. A lender will be happy to see you investing in the loan, regardless of the amount. Auto dealers and lenders only stay in business if they sell cars and originate loans, but not everyone involved has your best interests at heart.
The auto industry includes many predatory dealers and lenders that prey on consumers who have recent bankruptcies and need a loan for a new vehicle. If you get stuck in one of these loans, you could find yourself paying for your car even after you replace it with a new one. We all experience hard times that require a little help along the way. Along with key review factors, this compensation may impact how and where products appear on the page including, for example, the order in which they appear.