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Can you get a car loan before a Chapter 7 discharge?
Would I be able to get a car loan before a Chapter 7 discharge? I need a car, but I’m worried I won’t get approved after the discharge goes through.
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
While it is possible to get a car loan before a Chapter 7 discharge, it’s a good idea to wait until after your discharge has been granted, as you will have more negotiating power with the bank.
It’s true that bankruptcy hurts your credit, but lenders also look at your debt to income ratio when determining eligibility for a loan. Once your discharge is granted, you’ll have very little to no debt with the bank, and you won’t be able to file Chapter 7 again for at least eight years. In that regard, you’ll be a pretty good candidate for a loan, as long as you’re prepared for a high
APR
.When you apply for the loan, you might be asked to provide proof of insurance, too. To make sure that you can stay on top of your monthly payments, try using the
Jerry
app to find the cheapest car insurance available to you! Jerry will do the hard work of comparing personalized insurance quotes from the top 50 providers, including Nationwide, Allstate, and Travelers, so all you have to do is compare companies and choose the policy that works best for you. The average Jerry driver saves $879 a year on car insurance!View full answer
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