Finance Center | Moses Lake, WA
Car Loans After Bankruptcy or Repossession in Moses Lake
A Chapter 7 discharge, a Chapter 13 plan that is still open, and a repossession on your credit report each call for different paperwork when you apply for a car loan. Below is what each one means for buyers in Moses Lake and the rest of Grant County, what to bring, and how Bud Clary Ford of Moses Lake sends your application to lenders, who make the credit decision.
- 60 to 90 daysUsual Chapter 7 discharge timing, counted from the first creditors' meeting date
- 3 to 5 yearsLength of a Chapter 13 repayment plan
- Up to 7 yearsHow long a repossession can stay on credit reports
- SundaysSales hours run 11:00 AM to 5:00 PM
Where your bankruptcy or repossession stands
Each situation reads differently to a lender, and each one has its own paperwork. Find the row that matches yours.
| Your situation | What it means for a new loan | Paperwork to have ready |
|---|---|---|
| Chapter 7, discharge order issued | The discharge releases you from personal liability for most debts in the case, and those creditors can no longer try to collect them. Each lender writes its own rules on lending after a discharge. | A copy of the discharge order |
| Chapter 7, filed but not discharged yet | U.S. Courts says the order usually arrives 60 to 90 days after the date first set for the meeting of creditors. Ask your bankruptcy attorney before you sign for new credit while the case is open. | Your case number and your attorney's name and phone number |
| Chapter 13, plan still running | The plan lasts three to five years, and U.S. Courts says a debtor may not take on new debt without consulting the trustee first. Grant County cases follow the Eastern District of Washington's notice process, explained below. | Whatever your attorney or trustee gives you in writing about the new loan |
| Chapter 13, plan finished | Completing every plan payment, along with the court's other conditions, entitles the debtor to a Chapter 13 discharge. | The Chapter 13 discharge order |
| Repossession with a balance still owed | When the old lender sells the vehicle, you may owe the difference between what was left on the loan, plus repossession fees, and the sale price (CFPB). A new lender will see that open account. | The old lender's letter showing the balance or any payment plan |
| Repossession paid or settled | The repossession can still appear on credit reports for up to seven years. Make sure your reports show the account as paid or settled. | The paid-in-full or settlement letter |
General information, not legal advice. Your bankruptcy attorney or trustee has the final word on your case.
Still in Chapter 13? How the Eastern District of Washington handles it
Grant County is one of the counties that make up the federal Eastern District of Washington (28 U.S.C. 128), so a Chapter 13 case filed from Moses Lake, Ephrata, Quincy or Othello runs under that bankruptcy court's local rules.
Its Local Bankruptcy Rule 2083-1 covers buying property on credit while a plan is in effect. When a purchase could affect your ability to finish the plan, the debtor files and serves a Notice of Intent to Incur Post Petition Debt, together with an amended statement of income and expenses that shows how the new payment changes the household budget. If someone objects to the notice, the court decides the request.
Your attorney handles that filing. Our part comes before it: choose a vehicle and get its price from us in writing, so the numbers in your notice match a real car or truck. Wait to sign a retail contract until your attorney tells you the process is finished.
Six things to do before you apply
These apply whether your setback was a bankruptcy, a repossession or both.
- Pull all three credit reportsEach nationwide bureau lets you check your report once a week for free at AnnualCreditReport.com, the only site the FTC says is authorized to fill those orders.
- Check how the old accounts are listedDebts wiped out in your bankruptcy, and the loan behind a repossession, should show their real status. If something is wrong, the CFPB says to dispute it with the credit bureau and with the company that reported it, and both generally have to investigate.
- Settle the repossession questionFind out whether a deficiency balance is still open, on a payment plan or settled. Get the answer from the old lender in writing and bring it.
- Document all of your incomeUnder Regulation B, a lender can't discount income because it comes from part-time work or a pension, and can't hold public assistance income against you. Social Security, disability benefits, part-time wages and self-employment income may count; the lender decides. If your pay rises and falls with the farm season, last year's tax return shows the whole year.
- Apply once, when you're ready to buyThe CFPB says auto loan credit checks generally count as a single inquiry when they fall within 14 to 45 days of each other. One complete application that our finance office sends to several lenders keeps your shopping inside that window.
- Decide how much to borrowLenders compare the loan with the vehicle's value, and the CFPB notes that borrowing a bigger share of that value makes a loan riskier for the lender. Cash down or a trade-in shrinks the amount you finance.
How dealer financing works at Bud Clary Ford of Moses Lake
We arrange the financing, and lenders make the credit decisions. The credit application on our site comes to our finance office on South Pioneer Way, and from there it goes to one or more lenders, which the CFPB notes can include banks, credit unions and nonbank auto finance companies. Each lender decides whether to offer you a loan and on what terms.
According to the CFPB, lenders weigh your credit scores and history, your income and debts, the loan amount and term, your down payment compared with the vehicle's value, and whether the vehicle is new or used. A bankruptcy or a repossession is one part of that credit history, and the rest of the list still counts.
All credit types are welcome at Bud Clary, and our options include credit union direct lending next to traditional financing. If you sign a contract that depends on financing, Washington law gives the dealer four business days to accept it without conditions or void it, and a voided contract means your down payment and trade-in come back to you (RCW 46.70.180).
A negotiable documentary service fee of up to $200 may be added to the sale price.
What to bring to the dealership
Lenders ask for different documents, so our finance team may need more or less than this. Having it all in one folder saves a second drive in from Othello, Quincy or Ephrata.
- A valid driver's license
- Your bankruptcy discharge order, or for an open Chapter 13 case, the paperwork your attorney gives you about the notice to incur debt
- Your bankruptcy attorney's name and phone number
- For a past repossession, the letter showing the remaining balance, a payment plan, a settlement or payment in full
- Recent pay stubs, or award letters for Social Security, disability or other benefits
- Last year's tax return and 1099s if you're self-employed or paid by the season
- Proof of where you live, such as a utility bill or lease
- Your trade-in's title or loan payoff details, plus every key
- Proof of insurance or your agent's contact information
Picking a vehicle that fits the budget
Our used inventory can be sorted by price, low to high. Each used vehicle at Bud Clary gets a 117-point inspection before it reaches the lot and comes with a free CARFAX report, a 3-month / 3,000-mile limited warranty, and two oil changes and two tire rotations.
Changed your mind after you drive home? The 3-day / 300-mile exchange lets you trade it for a different vehicle from us within 3 days or 300 miles.
Bringing a trade? We pay off its loan with your lender directly, and trading in lowers the taxable price of what you buy, so you pay less sales tax. Start with Value Your Trade, or sell us your car even if you don't buy one of ours.
Paperwork together? Start your application
Fill out the application online whenever it suits you. To talk it through first, call our sales team Monday through Saturday 9:00 AM to 6:00 PM or Sunday 11:00 AM to 5:00 PM.
Visit Bud Clary Ford of Moses Lake
Bud Clary Ford of Moses Lake1140 South Pioneer Way
Moses Lake, WA 98837
Sales
- Mon - Sat
- 9:00 AM - 6:00 PM
- Sunday
- 11:00 AM - 5:00 PM
Service
- Mon - Fri
- 7:30 AM - 5:30 PM
- Sat - Sun
- Closed
Frequently asked questions
Can I get a car loan after Chapter 7 bankruptcy?
You can apply once the court has issued your discharge order, and you should bring a copy. Each lender sets its own rules for lending after a discharge, so the credit decision is the lender's. Our finance office can send one application to several lenders.
Can I buy a car while I'm in Chapter 13?
Talk to your attorney and trustee first. The federal courts' Chapter 13 guide says new debt during a plan requires consulting the trustee, because another payment can keep you from finishing. In the Eastern District of Washington, which includes Grant County, Local Bankruptcy Rule 2083-1 uses a Notice of Intent to Incur Post Petition Debt, and your attorney files it.
How long after a bankruptcy discharge can I get a car loan?
It depends on the lender, because each one sets its own rules. The CFPB says a bankruptcy can stay on your credit reports for up to ten years, so lenders will see it either way. Bring the discharge order to show the case is closed.
Can you finance a car after a repossession?
You can apply. A repossession can stay on credit reports for up to seven years, and a new lender will want to know whether any deficiency balance is still owed. Bring the letter that shows the balance, a payment plan, a settlement or payment in full.
Do lenders count Social Security or disability income?
It may. Regulation B bars a lender from holding public assistance income against you or discounting pension and retirement income, and Social Security, disability, part-time and self-employment income may count; the lender decides. Bring your award letters.
Will a car loan application show up on my credit?
A lender reviewing your application may check your credit, which shows up as an inquiry. The CFPB says auto loan inquiries within 14 to 45 days of each other generally count as one, so apply when you're ready to buy.