Fresh Start
Life happens. We make it easy to get back on track.
Bad credit, an old repossession or a no from somewhere else? See how Bud Clary Auburn Hyundai's Fresh Start Finance Program works.
Fresh Start Finance Program
Bankruptcy Doesn't Have to Mean No Car.
Working through a Chapter 7 or a Chapter 13? A bankruptcy changes the paperwork more than the shopping, and our finance office at 2807 Auburn Way N will help you get it in order.
Buyers with credit setbacks, in their own words
★★★★★1,100+ five-star Google reviewsRead our Google reviews for Bud Clary Hyundai of Auburn
“...My salesman and sales manager really stepped it up for me because I was in a poor position to begin with, but they wanted to make sure I left better than I came in. They were no pressure at all...”
Pete S., Google review, January 2021
“...He really listened to what we wanted and helped us find a car that met our needs within our budget. He was patient and accommodating as he explained our options and answered all of our questions...”
Katherine T., Google review, November 2023
“...I was apprehensive at first. ... He and his sales manager Jedi never tried to steer me from things I wanted, and they guided me through a whole process that was as friendly and comfortable as it was smooth.”
Kevin G., Google review, November 2019
Excerpts from 5-star Google reviews, quoted as written. Every buyer's situation is different, and lenders make every credit decision.
Your case status and the papers to match
| Case status | Papers lenders typically request | Check first with |
|---|---|---|
| Chapter 7, discharged | Your case number and the discharge order. U.S. Courts explains that the court generally grants it 60 to 90 days after the creditors' meeting is first scheduled to take place. | Our finance office |
| Chapter 7, open | Most lenders hold out for the discharge. Ask your attorney before signing for credit of any kind. | Your attorney |
| Chapter 13, in repayment | Permission in writing, from the trustee or the court, for the new loan. Chapter 13 filers are told by U.S. Courts to talk with the trustee before any new debt. | Your attorney and the trustee |
| Chapter 13, discharged | Your Chapter 13 discharge order | Our finance office |
General information only, not legal advice. Your attorney or trustee should answer questions about your own case.
Why lenders ask for the trustee's OK in the Western District
Bankruptcy cases from King County are heard in the Western District of Washington, one of the state's two federal bankruptcy districts (28 U.S.C. 128), and a case stays with the court where it was filed. When a Chapter 13 plan has been confirmed, Local Bankruptcy Rule 3015-2 there allows you to ask the trustee, by letter, to approve financing a vehicle. With the trustee's approval, no separate court order is required; without it, your attorney can file a motion.
Lenders have their own reason to wait for that approval. Under 11 U.S.C. 1305(c), a lender's claim for consumer debt taken on during a Chapter 13 can be disallowed if it knew, or should have known, that getting the trustee's approval first was practicable and it didn't.
Five things to do before you apply
Follow your attorney's advice first. These steps just give a lender a clearer view of where you are now.
- Gather the court documentsA closed case calls for its discharge order; an active Chapter 13 calls for a written OK covering the new debt. If the discharge order has gone missing, your attorney can provide another copy.
- Review all three credit reportsThey're free at AnnualCreditReport.com. Confirm the accounts from your case read correctly. Federal law permits a bankruptcy on a report for up to 10 years, counted from the order for relief (15 U.S.C. 1681c).
- Add up all your incomeWrite down wages, self-employment, benefits, a pension and part-time work. Regulation B keeps a lender from writing off part-time, pension or public assistance income for its source alone; the amount it counts is up to the lender.
- Plan the full monthly costPrice, insurance and fuel all draw on one budget. During a Chapter 13, the trustee will look at whether the new payment leaves your plan on track.
- Keep loan shopping shortAuto loan inquiries clustered in a 14 to 45 day window are generally treated as one for scoring (CFPB). Hold off applying until you're ready to buy.
Reading a bankruptcy the way a lender does
To a lender, a bankruptcy is one chapter of the story. The CFPB says lenders also look at what you earn and owe, the size of the loan, how your down payment stacks up to the vehicle's value, and whether it's new or pre-owned.
Waiting periods after a discharge vary from lender to lender; there isn't one rule. Bud Clary Auburn Hyundai's finance office asks about your case first, so the application reaches lenders open to bankruptcy files. No approval is guaranteed.
Terms from your case, defined
| Term | Definition |
|---|---|
| Discharge | The order that releases you, personally, from paying most debts covered by your case (U.S. Courts). Expect a lender to ask for a copy. |
| Trustee | The court-appointed official overseeing your case. In a Chapter 13, plan payments go through the trustee, and so does any request for new debt. |
| Chapter 13 plan | A court-supervised repayment schedule, usually three to five years, during which you keep your property (U.S. Courts). |
| Motion | A formal request to the bankruptcy court. In the Western District, it's the next route if the trustee doesn't approve a vehicle request. |
| Reaffirmation agreement | A promise to keep paying a debt that a Chapter 7 would otherwise discharge, such as a current auto loan. Your attorney should weigh in before you sign one. |
Picking a vehicle the plan can carry
Going used generally means borrowing less. Every used vehicle at Bud Clary Auburn Hyundai has passed a 137-point inspection, and the purchase brings its CARFAX history at no charge, an exchange if you change your mind within 3 days or 300 miles, 3 months or 3,000 miles of limited warranty protection, and the first two oil changes and tire rotations free (the two rotations alone on an electric vehicle).
Look through used vehicles under $20,000, Hyundai Certified Pre-Owned or all used vehicles. A used vehicle sitting at a different Bud Clary store can be moved here at no cost, as soon as the same day.
Other Fresh Start Finance Program guides
First-time buyers
No credit isn't bad credit. It's a starting point.
Once a bankruptcy is behind you, your recent history may be thin. Here's how lenders size up a short file.
What to bring to 2807 Auburn Way N
- For a closed case, the discharge order; for an active Chapter 13, the approval letter from the trustee or court
- Case number, and how to reach your bankruptcy attorney
- Driver's license
- Pay stubs, benefit award letters, or 1099s for self-employment
- Something with your address on it, like a power bill or rental agreement
- Proof of insurance or a way to reach your agent
Paperwork in hand?
Begin with the quiz above, open our online credit application, or phone (253) 833-2465 and ask the finance office about your case.
Visit Bud Clary Auburn Hyundai
Bud Clary Auburn Hyundai2807 Auburn Wy N
Auburn, WA 98002
Sales
- Mon - Sat
- 8:30 AM - 8:00 PM
- Sunday
- 10:00 AM - 6:00 PM
Service
- Mon - Fri
- 7:30 AM - 6:00 PM
- Sat - Sun
- Closed
Frequently asked questions
When can I get a car loan after Chapter 7?
Once the discharge is entered, you can apply; bring the order with you. Lenders each set their own waiting period, so how soon one will lend varies.
Can I apply while my Chapter 7 is still open?
Check with your bankruptcy attorney before you sign for anything. Most lenders also prefer to see the discharge before they'll consider a new auto loan.
Can I get a car while in Chapter 13?
It can be done, with permission. U.S. Courts says to consult your trustee before new debt. Here in the Western District, you can put that request to the trustee by letter after confirmation, under Local Bankruptcy Rule 3015-2. If the trustee declines, your attorney can take it to the court.
Why does the lender want my trustee's approval?
Because federal law can disallow a lender's claim on consumer debt taken on during a Chapter 13 when getting the trustee's approval first was practicable and the lender didn't (11 U.S.C. 1305(c)). So most lenders wait for it.
How long does a bankruptcy stay on my credit report?
Up to 10 years, counted from the order for relief that started your case. Lenders may ask about it at any point in that time, and each one decides how much it matters.
Will Bud Clary Auburn Hyundai work with me after bankruptcy?
Yes. Our finance office takes applications from buyers with a discharged Chapter 7 or an active Chapter 13 plan and sends them to lenders open to bankruptcy files. Every lender decides for itself, and approval isn't guaranteed.
Is the Fresh Start Finance Program a bankruptcy program?
No. Courts use "fresh start" to describe what bankruptcy offers debtors, but our program name simply covers how Bud Clary Auburn Hyundai's finance office works with buyers whose credit has taken a hit. Your case runs separately from it.
Related pages
The Fresh Start Finance Program is Bud Clary Auburn Hyundai's name for how our finance team handles applications from buyers with bad credit, no credit or a past bankruptcy. Financing comes from outside lenders, which decide approval and terms, and approval isn't guaranteed. This page is general information, not legal advice. A negotiable documentary service fee of up to $200 may be added to the sale price.