People going through a Chapter 13 bankruptcy in Virginia should take care to implement their court-ordered plans or they could face difficulties in obtaining credit in the future. There are a number of auto lenders that handle loans to consumers with past bankruptcies or other credit concerns.
However, even subprime lenders will likely have concerns about issuing a car loan in a case where a bankruptcy has been dismissed rather than discharged. Once people have filed for Chapter 13 bankruptcy, they must follow court rules and procedures. When a bankruptcy is discharged, that means that the process has been successful. On the other hand, a dismissed bankruptcy means that the process has not been completed. Bankruptcy filings can be dismissed without prejudice if a filer has made errors, filed the wrong forms or otherwise run up against procedural issues. In this case, a filer can re-file right away after correcting the error.
However, a bankruptcy dismissed with prejudice does not allow for a quick refiling. This type of case could include bankruptcy fraud, hiding assets, deliberately disobeying court orders or abusing the process. It could be possible to stop a dismissal from going on record before it happens by contacting the trustee if a filer is having difficulty making court-mandated payments.
A bankruptcy lawyer can provide help and guidance to people who are in debt over their heads and need to escape an impossible financial situation. Bankruptcy can be an important way to overcome debt and escape creditor harassment or wage garnishment and protect family property. Chapter 13 bankruptcy can provide an option to rebuild finances and overcome the mountain of debt by reorganizing debt into an affordable payment plan.