Most newly-bankrupt consumers are intimidated at the propect of applying and getting approved for any kind of installment loan. One of the most common of these is an auto loan. Getting qualified often depends on the type of bankruptcy you’ve filed.
For Chapter 7 bankruptcy, many lenders require that you complete the 341 meeting (the initial meeting of creditors), prior to application.
For Chapter 11 bankruptcy, many lenders require that you request from the trustee an Authorization to Incur Debt.
If you take care of these prerequisites, there’s a good chance you could get qualified for a bankruptcy auto loan despite rocky credit history. For the first year or two of your loan, you may have to pay a very high finance charge — sometimes more than 18% — but you can often trade-in for a new vehicle or refinance at a lower rate if you maintain a solid payment record in the interim.
