Littleton: 720-266-4941

Typical Credit Issues

Here are the most common credit issues, what they mean, and how they may affect the purchase of your car.

Chapter 7 Bankruptcy

Is a liquidation debt that generally takes three to four months from the filing date to discharge. We can arrange auto financing after the 341 meeting with the creditors or discharge has taken place.

Chapter 13 Bankruptcy

A chapter 13 bankruptcy is also called a wage earner’s plan. It is a re-organization of debts typically between one, three, and five year terms. Our lending source will require that an individual be at least 50% of the way through the term of discharge and receive written permission from the trustee and/or the bankruptcy court.

First Time Buyer

This individual usually has no revolving or installment credit history. Buyer typically has no credit bureau score, however, there are lending sources available for this type of buyer.

Multiple Bankruptcies

This is where an individual has one or more bankruptcies that have been filed or discharged whether it is a chapter 7 bankruptcy or a chapter 13 bankruptcy. This scenario still allows someone to secure auto financing.


If an individual has had a previous repossession, voluntary or in-voluntary, the lender will require that the repossession have occurred at least two years prior to the application for auto financing.

Debt Counseling or Credit Counseling Programs

This individual has gone to a profit or non-profit organization in an attempt to pay back creditors in full at a reduced rate and/or payment. There are lending sources available for this type of situation.

Unresolved or Excessive Derogatory Credit

This situation is one that most lenders will shy away from because of the high risk of bankruptcy. There are three forms of resolution: resolving the credit issues through repayment of debt. Resolving the debt through bankruptcy or not acting on the situation at all resulting in a continuation of excessive unresolved derogatory debt.

There is limited means of financing available for this type of customer. A lender willing to finance this type of customer will require a large cash down payment and a shorter loan term resulting in a higher monthly payment.

Let Us Help You Get Your Car

Find out how easy it can be to get your car — today!

JFR Bankruptcy Autos
8371 Southpark Lane
Littleton, CO 80120

Hours are flexible and by Appointment.

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