Fresh Start
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Turned down at another lot, or stuck with bad credit? See how our Union Gap store runs the program.
Fresh Start Finance Program
Bankruptcy Doesn't Have to Mean No Car.
Car loans after bankruptcy are open to Yakima Valley buyers to apply for, once a Chapter 7 is discharged and, with the right approval, during a Chapter 13. The court papers are what's new, and our Union Gap finance team will help you sort them out.
Papers by case stage
| Case stage | Papers a lender usually wants | Talk with |
|---|---|---|
| Chapter 7, discharge entered | The order itself and the case number. According to U.S. Courts, a Chapter 7 discharge is generally entered 60 to 90 days after the date first set for the creditors' meeting. | Our finance team |
| Chapter 7, waiting on the discharge | Lenders generally hold off until it's entered. Ask before you sign for new credit. | Your bankruptcy attorney |
| Chapter 13, still in the plan | A green light for the new debt, in writing, from your trustee or the court. U.S. Courts cautions Chapter 13 debtors against incurring debt before they consult the trustee. | Your attorney, then the trustee |
| Chapter 13, finished | The discharge order at the end of your plan | Our finance team |
This table is general information, not legal advice. Take questions about your own case to your bankruptcy attorney or trustee.
Yakima County is in the Eastern District
Under 28 U.S.C. 128, Yakima County cases run through the Eastern District of Washington, so a Valley bankruptcy follows that court's local rules. When someone in a Chapter 13 needs a vehicle loan, Local Bankruptcy Rule 2083-1 has them file a Notice of Intent to Incur Post Petition Debt and attach an amended income and expense statement. An objection sends the request to the court for a decision.
Your attorney files it, not the dealership. Most lenders want the new debt cleared before they fund, so start that filing before you lock in a vehicle. Need the car and its price spelled out for the paperwork? Our finance team can provide both in writing.
Get ready in five steps
Nothing here takes the place of your attorney. It just helps a lender read your file clearly.
- Gather your court documentsFor a case that's over, the discharge order; for a Chapter 13 still under way, the written approval of the new debt. Your attorney can replace a lost copy.
- Read all three credit reportsGet them free from AnnualCreditReport.com and see that each account from the bankruptcy is reported accurately. The law lets a bankruptcy remain on reports up to 10 years after the case begins (15 U.S.C. 1681c).
- Write down a full year of incomeList it all: seasonal farm work, benefits, a pension, self-employment. Regulation B stops a lender from discounting part-time, pension or public assistance income over its source, while the lender still decides how much of it counts.
- Make the loan smallerA cheaper car, more cash at signing or a trade-in all lower the balance. During a Chapter 13, the trustee will look at whether the new payment fits the plan's budget.
- Apply in one burstThe CFPB explains that auto loan inquiries grouped inside a 14 to 45 day period are generally scored once, so hold your applications until you're ready to buy.
Reading a bankruptcy the way a lender does
A bankruptcy is only part of what a lender looks at. The CFPB also points to what you earn and owe, the amount you'd borrow, your down payment compared with the car's value, and new or used.
Every lender sets its own rule on time since discharge, if it has one at all. Our finance team in Union Gap starts with your case details, so the application goes where a bankruptcy on file is considered. Approval isn't guaranteed.
Terms from your case
| Term | What it means for a car loan |
|---|---|
| Discharge | The order that ends your personal obligation to pay most debts covered by the case (U.S. Courts). It's the page lenders ask for first. |
| Trustee | The court-appointed official handling your case. In a Chapter 13, your payments flow through the trustee, who needs to hear from you before a new loan. |
| Chapter 7 | The shorter kind of case; most debts are discharged within months. |
| Chapter 13 | A repayment plan of three to five years that lets you hold on to your property (U.S. Courts). |
| Case number | The number the court gave your bankruptcy. Lenders use it to look up the case and confirm where it stands. |
Buyers who started over
★★★★★4.6 stars from 2,223 Google reviewsRead our Google reviews for Bud Clary Toyota of Yakima
“Enjoying my experience at Bud Clary. First purchase 2 years into bankruptcy and they really came through for me.”
Rustel K., Bud Clary Subaru, Longview, Google review, January 2023
“I was uneasy because I had a small budget and had a bankruptcy a few years ago, Travis was very optimistic and calmed my nerves! And he treated me like VIP.”
Charisse W., Bud Clary Ford, Longview, Google review, May 2025
“...The sales team did not have any bias towards me or judge me because of my status or situation. They treated me fairly and kind...”
Gariane L., Bud Clary Auburn Chrysler Dodge Jeep Ram, Google review, December 2017
Excerpts from 5-star Google reviews, quoted as written. Every buyer's situation is different, and lenders make every credit decision.
Choosing a car that fits your budget after bankruptcy
A used car usually means less to borrow. Each one on our Union Gap lot has gone through a 137-point inspection. Buy it and you're covered by a 3-month / 3,000-mile limited warranty, with the 3-day / 300-mile exchange, the CARFAX report at no cost, and two complimentary oil changes and tire rotations (tire rotations only on an electric car).
Look through used cars under $10,000 or the whole used inventory. Spot the right one at a sister Bud Clary location? It can come to Union Gap at no charge, as soon as the same day.
Keep reading
First-time buyers
No credit isn't bad credit. It's a starting point.
Once a bankruptcy closes, your file may hold very little. Here's what lenders weigh when the history is short.
Your bankruptcy checklist for Longfibre Road
- Your discharge order, or the approval for new debt in a Chapter 13 that's still open
- The case number and your attorney's contact information
- A valid driver's license
- Pay stubs, benefit letters, W-2s or last year's tax return
- A utility bill or rental agreement with your current address
- Proof of insurance, or how to reach your agent
Got your discharge or approval?
Use the quiz at the top, complete the credit application, or call (509) 575-4868 and ask for the finance team.
Visit Bud Clary Toyota of Yakima
Bud Clary Toyota of Yakima2230 Longfibre Rd
Union Gap, WA 98903
Sales
- Mon - Fri
- 8:30 AM - 7:00 PM
- Saturday
- 8:30 AM - 6:00 PM
- Sunday
- 10:00 AM - 5:00 PM
Service
- Mon - Sat
- 7:30 AM - 6:00 PM
- Sunday
- Closed
Frequently asked questions
When can I apply for a car loan after Chapter 7?
After the court enters the discharge. Bring the order with you; lenders decide for themselves how much time they want to see after it.
Can I get a car loan in Yakima before my Chapter 7 discharge?
Speak with your bankruptcy attorney before signing for credit while the case is open. Lenders typically want the discharge first anyway.
Can I get a car loan during Chapter 13?
It can happen, with your trustee involved from the start. U.S. Courts says Chapter 13 debtors shouldn't incur new debt without consulting the trustee, and Yakima County cases follow the Eastern District's Local Bankruptcy Rule 2083-1 notice process.
How long after bankruptcy do I have to wait for a car loan?
There's no single answer; each lender has its own policy. Since credit reports can show a bankruptcy for up to 10 years, a lender is likely to ask about yours either way.
Is there a car dealership in Yakima that works with bankruptcy?
Bud Clary Toyota of Yakima does. Our finance team takes applications from buyers whose case is discharged or whose Chapter 13 is ongoing, then sends them to lenders that consider a past bankruptcy. Lenders decide, and approval isn't guaranteed.
Should I reaffirm my car loan in Chapter 7?
Make that decision with your bankruptcy attorney. Reaffirming keeps you personally on the hook for a debt, such as the loan on the car you drive now, that the discharge would otherwise remove, and it carries real consequences.
Is Fresh Start Finance Program a bankruptcy program?
No. Bankruptcy courts use the phrase for what a discharge offers, but here it's only what Bud Clary Toyota of Yakima calls the way its finance team works with credit-challenged buyers. It has no role in your case and is not legal advice.
Related pages
The Fresh Start Finance Program is Bud Clary Toyota of Yakima'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.