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Can I qualify for a car loan after bankruptcy?
I told my friends that I've had to apply for bankruptcy because my medical bills were too much for me to afford. They told me that I won’t be able to get a car loan now. Can I qualify for a car loan after bankruptcy?
Lauren Smith · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Don’t worry, you can get a car loan after
bankruptcy
, but how soon will depend on the type of bankruptcy you file. Chapter 7 bankruptcy is short and requires you to sell your assets to pay off your debts. To get a
car loan
after this, you must wait until it’s finalized or get permission from the court to keep the debt.Chapter 13 spans over three to five years during which you stick to a financial repayment plan. Because of how long this bankruptcy lasts, you can usually get permission during this proceeding to get a car loan, as long as your budget and financial repayment plan allow it.
The difficulty of qualifying for a car loan after bankruptcy is that you typically have a lower credit score. Because of this, lenders are less willing to accept you as a risk. If you’re having trouble finding a lender, consider:
To help save you money along the way, use the
Jerry
app. Jerry compares 50+ top insurers to make sure you are getting the best rate and coverage. View full answer
- Gregory R.
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