How Can I Get a Title Loan While in Bankruptcy?
If you were like many Americans who were overwhelmed by debt or suffered from a sudden loss of income, you may have filed for bankruptcy to seek financial relief. In the event that you’re hit with an unexpected expense during this legal process, you may be searching for a convenient loan option, like a title loan, to help you out with this pesky cost.⁵ However, you may wonder if you can get a title loan while in active bankruptcy since your credit score may have been negatively impacted due to this filing.
While car title loans are typically flexible for applicants with bad credit, it is important to understand that you’ll have difficulty getting approved for fast cash while in bankruptcy.⁵ Applicants who are currently bankrupt are often disqualified for auto title loans because of the high risk involved and legal restrictions placed by bankruptcy trustees. Whether you’re in Chapter 7 or Chapter 13 bankruptcy, you can expect to endure several restrictions that make it challenging to get the money you need for your situation. Fortunately, once you’re out of bankruptcy, you can have better chances of qualifying for a title loan since lenders won’t have to worry about you being in the middle of a bankruptcy payment process.
As long as you have the necessary income to handle title loan payments, you may have the chance of applying for this car secured loan option post-bankruptcy. Make sure you possess the title of a qualifying vehicle to pledge as collateral and access the funds you can use to cover various expenses! Continue reading to learn more about online title loans and how you can apply for quick funding after your bankruptcy has been dismissed or discharged.⁵
Can Bankruptcy Stop a Title Loan?
Suppose you apply for an auto title loan but don’t have sufficient funds to complete your payment obligations due to a sudden change in your finances. Can you file for bankruptcy to cover the remainder of your loan balance and maintain access to your car? The answer to your question will ultimately depend on the type of bankruptcy you choose to file for. If you file for Chapter 7 bankruptcy, for example, you cannot discharge your loan through this option since it will usually only discharge unsecured debts like credit cards and personal loans.
When filing for Chapter 13 bankruptcy, you will still need to make your arranged installment payments, but you may be able to access lower monthly payments that can help you pay off your loan more comfortably. You won’t necessarily “stop” a title loan through this type of bankruptcy, but it may be useful in giving you a convenient repayment process that fits your financial situation. However, it’s worth noting that a title lender can still repossess your vehicle if you default on your title loan, even if you filed for Chapter 13 bankruptcy. If you find it difficult to manage your loan payments, you can communicate your issues with your title loan lender to discuss possible solutions to get you back on track with your payment schedule!
Don’t hesitate to speak with your title loan lender to arrange an alternative solution to a vehicle repossession. If you want to refinance your loan with another option that offers better loan terms and more favorable interest rates, you can consider working with Max CashⓇ to seek a reputable title lender that meets your preferences!² ⁵ Dial 833-207-9052 to reach a friendly and knowledgeable representative who can guide you through this process.
Can You Get a Vehicle Title Loan After Bankruptcy?
Yes! As mentioned previously, you can get an auto title loan online as long as you’re not in active bankruptcy and have the income to make monthly loan payments. Although getting unsecured loans after bankruptcy can be difficult because of your damaged credit score, you may still be able to qualify for a vehicle title loan since you’ll use your car’s title as collateral for the loan. If you own a car, truck, or SUV with sufficient positive equity, you can potentially get approved for fast funding and access the loan proceeds you need to cover an unexpected bill or expense!⁵ In the event that you don’t know your vehicle’s current value, you can use different online valuation tools to discover your car’s positive equity, such as Kelley Blue Book or Edmunds!
Before attempting to find a lender willing to work with you while you’re bankrupt, it’s essential to remember that you’ll need express permission from your bankruptcy trustee or court judge to submit any kind of hardship loan application. You can request permission from one of these appointed officials by filling out a form that you can only get from your attorney, which must also be signed by them.
If you decide to ask a judge’s approval instead of a bankruptcy trustee, you will have to request permission with a formal motion that must be filed by your attorney. Any loans or credit that you borrow without permission can result in serious consequences, such as the court dismissing your case or the new debt not being included in your discharge if you can’t pay it independently.
How Long After Bankruptcy Can I Get an Auto Title Loan?
The amount of time you must wait to obtain an auto title loan after bankruptcy can depend on the lender you choose to submit an application with, as it may vary. In some cases, an application for an online car title loan can be available immediately once your bankruptcy has been dismissed or discharged.⁵ However, some lenders are more cautious with applicants who have completed their bankruptcy proceedings. Those lenders would prefer that they apply six months after they’re completely out of bankruptcy proceedings. Typically, it is recommended that you wait this period of time to build your credit after the possible damage you’ve suffered from a bankruptcy, and potentially increase a lender’s confidence in your ability to pay an auto title loan.
Of course, if you’re dealing with a sudden expense, you can’t afford to wait long until you get the money you need to cover that cost. If you can find a lender willing to fund you as soon as you’re out of bankruptcy, you can submit an application and get emergency cash if you qualify for an auto title loan. To increase your chances of getting loan approval, though, you can consider improving your credit score before you start an application.⁵ Title loan lenders tend to focus more on your car’s value and your income than your credit history, but they may provide high interest rates if they consider you a significant credit risk to them.⁴
Thankfully, you can take many proactive steps to boost your credit history from a bad position. It won’t be a fast process, but you can increase your credit score over time if you follow some of these practical tips to work on your credit history:
- Pay Your Credit Card Bills on Time
- Maintain Your Credit Utilization Low
- Diversify the Types of Credit You Have
- Keep Your Old Accounts Open
- Don’t Get Close to Your Credit Limit
- Limit New Credit Inquiries
- Dispute Any Accuracies Found on Your Credit Report
What are the Requirements for Getting an Online Title Loan After Bankruptcy?
If you’re thinking about getting an online title loan after bankruptcy, you must follow the same basic requirements that every individual must meet during the application process. The criteria for an auto title loan can sound intimidating, but you can expect to meet some straightforward requirements once you submit a loan application, which typically include:⁵
- Be 18 Years of Age or Older
- Possess a Vehicle with a Qualifying Amount of Value
- Provide Proof of a Reliable Source of Income
- Have a Car Title in Your Name to Use as Collateral for the Loan
No matter which state you’re applying for a vehicle title loan, you can expect to submit a few documents to verify essential details in your application. It’s important to confirm with the lender if the list of paperwork will differ based on your location, but applicants must often submit the following documentation to qualify for a car title loan:⁵
- The Title of a Car or Truck in Your Name
- Evidence of Your Current Address
- A Valid, Government-Issued Photo ID Card
- Proof of Income or Alternative Income
- Proof of Insurance May Be Required
- Several Pictures of Your Vehicle to Complete a Virtual Car Inspection if the Lender is Online
Once you submit the aforementioned documents online to a title loan lender, you can find out if you’re approved for the funds you need to handle a personal or unexpected expense! Call a Max CashⓇ representative today at 833-207-9052 if you have questions about the title loan requirements, or if you’re ready to connect with a title loan lender that can help you access quick financial relief.² ⁵
Where Can I Apply for Title Loans Near Me with a Past Bankruptcy?
Getting a title loan with a past bankruptcy is made easier with the help of Max CashⓇ. Instead of leaving your home to find different title loan offices in your area, you can simply find various lenders online by submitting a brief inquiry form and providing the necessary documents to verify your application information!² ⁵
Check out the quick, three-step process you can expect when inquiring for a title loan with Max CashⓇ and connect with a title loan lender if you’re eligible:² ⁵
- Start Your Application By Completing a Short Inquiry Form or By Calling 833-207-9052
- Submit the Required Paperwork Online
- Find Out if Your Inquiry is Approved, Sign Your Loan Agreement, and Receive Your Money!⁵
When you need extra funding in a big hurry, you can find a reliable solution by getting assistance with the help of Max CashⓇ.2 5 Even if you have a past bankruptcy, you may have the opportunity to qualify for a title loan by meeting the necessary requirements and connecting with a reliable lender that is willing to help you out! Get started on your loan inquiry now by filling out the online form or by calling Max Cash at the number above.
