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Can I get a car loan after a Chapter 7 discharge?
I finally finished with Chapter 7 bankruptcy court. Because I had more equity than the equity exemption allowed, I had to sell my car. Public transit isn’t an option where I live, so I need to get a car to go to my job. I want something reliable, but I don’t have a ton of cash on hand. Can I get a car loan following my Chapter 7 discharge?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Congratulations on your bankruptcy discharge! While it may not seem like an achievement, it’s a stepping stone to a better financial future.
To address your question, you can get a car loan after a Chapter 7 discharge, but finding a lender may be tricky.
After bankruptcy, your credit score probably took a hit. As a result, lenders now see you as a high-risk borrower. In some cases, lenders may choose not to work with you at all, while others will offer high interest rates and rigid terms on the loan, especially when it comes to late fees.
Shopping around for a
car loan
is always your best bet to get more favorable terms. A great place to start is with the bankruptcy court or your attorney. Either may have a list of lenders that work directly with people in your position.To save money on your new car, download the Jerry app. As a licensed broker,
Jerry
helps you find and compare quotes from dozens of car insurance providers in minutes. Find a great rate, and Jerry can help you buy your new coverage. Jerry customers save an average of $879 per year!View full answer
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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