Auto Refinancing During Bankruptcy

With the economy still not where it should be many Americans have found themselves facing bankruptcy. We all know that bankruptcy can severely hurt your credit score, but did you know the most damage is done right after filing? This is why making any financial decisions, such as auto refinancing, while still in the process can be rather difficult.

Now, if you have filed for a chapter13 personal bankruptcy finding a lender who will refinance your auto loan may be easier. This is because a refi often lowers the monthly payments, and that extra money can be used to help repay your other creditors throughout the three to five year repayment plan.

If you have filed for a chapter 7 personal bankruptcy you may have trouble finding a lender that will accept your refi application. This is mainly because the chapter 7 liquidation process only lasts for a few months and the refinance can go a lot smoother once you are discharged.

Post-Bankruptcy Refinancing

While it is possible - with a strong plea to your trustee - to find a lender to accept you for an open bankruptcy refinancing, it is much easier and you are more likely to be approved if you apply for auto refinancing after bankruptcy.

Once you have received your discharge papers you will most likely qualify for a better interest rate and loan terms resulting in more affordable monthly payments. Here at SmallerCarPayments.com we can help you find a refi lender in your area that can give you your best chance at an approval regardless of your bankruptcy status.

If you're ready to get started then apply online today using our secure auto refinance application. You could be on your way to saving on your car loan in a few short days.