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Can you get a car loan after Chapter 7 discharge?
Is it possible to get a car loan after my Chapter 7 discharge? I really need a car for my new job, but my old one was declared nonessential in my bankruptcy so I couldn’t keep it.
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
I’m sorry to hear that you lost your car, but try not to worry! It is possible to get a car loan after your Chapter 7 discharge. But it will be more challenging due to your new credit score.
To get a new car loan after filing for Chapter 7 bankruptcy:
- Make sure that you wait until the bankruptcy has been finalized, which can take four to six months. Otherwise, you could be accused of fraud.
- Try to repair your credit as much as possible before applying.
- Shop around and find a lender who specializes in borrowers with bad credit. You should expect most of your loan options to have a highAPRbut check around to make sure you’re getting the best possible terms before you sign any agreement.
- Save for a large down payment. Your lender assumes less risk when you pay more upfront, so a down payment can sometimes help you secure a loan.
- Try to find a cheaper car.
If you’re worried about making your payments, start saving on car insurance with
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