A chapter 13 bankruptcy is also called a wage earner’s plan. It is a re-organization of debts typically between one, three, and five year terms. Our lending source will require that an individual be at least 50% of the way through the term of discharge and receive written permission from the trustee and/or the bankruptcy court.

This individual usually has no revolving or installment credit history. Buyer typically has no credit bureau score, however, there are lending sources available for this type of buyer.

This is where an individual has one or more bankruptcies that have been filed or discharged whether it is a chapter 7 bankruptcy or a chapter 13 bankruptcy. This scenario still allows someone to secure auto financing.

If an individual has had a previous repossession, voluntary or in-voluntary, the lender will require that the repossession have occurred at least one year prior to the application for auto financing.

This situation is one that most lenders will shy away from because of the high risk of bankruptcy. There are three forms of resolution: resolving the credit issues through repayment of debt. Resolving the debt through bankruptcy or not acting on the situation at all resulting in a continuation of excessive unresolved derogatory debt.

There is limited means of financing available for this type of customer. A lender willing to finance this type of customer will require a large cash down payment and a shorter loan term resulting in a higher monthly payment.