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Can I get a car loan after I file for Chapter 13 bankruptcy?
I'm in the middle of Chapter 13 bankruptcy proceedings, but I'm worried about my ability to take out loans in the future. Will I be able to get a car loan down the road after filing for bankruptcy?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
I’m so sorry to hear about your financial situation. I’m glad to say that while getting a
car loan
after Chapter 13 bankruptcy is difficult, it’s still possible. In Chapter 13 bankruptcy, you still keep your assets, but your debt becomes restructured. Paying off this debt is usually a three or five year process.
However, filing bankruptcy can affect your credit score for up to seven years and that’s what may make getting a car loan difficult, even after you repay your debts.
The best way to get approval is to work on repaying debt and rebuilding your credit score. Saving for a down payment is also a good call, since it may give you a better shot at getting a car loan.
If you can find a lender to approve you, beward of exorbitantly high interest rates, which can cause you to go
upside down
on a car loan for years until you break even.If you’re approved for a car loan after bankruptcy, remember that you’ll need full coverage car insurance on the car. To get the coverage you need without breaking the bank, check out the
Jerry
app—we’ll get you customized quotes from top providers in seconds, so that all you have to do is choose the plan that works best for you.Best of luck with the bankruptcy proceedings, and hopefully your finances look up from here!
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- Gregory R.
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