Read our answers to some of the questions we are most commonly asked about getting a car loan while in a bankruptcy.
Can I get an auto loan while in an open chapter 13 bankruptcy?
Yes, however, it might require more work on your part and permission from the trustee.
Can I get auto financing during a chapter 7 bankruptcy?
Yes, you can get auto financing the day after you file, however, you must meet the lender guidelines.
How long do I have to wait after the bankruptcy is discharged before I can apply for auto financing?
No wait is needed. This is the best time to start re-establishing your credit.
Can a person who has had multiple bankruptcies still get a car loan?
Yes. Most people can qualify for auto financing as soon as their most recent bankruptcy is discharged.
How much money down will I need?
When buying a car after bankruptcy, it is recommended that you have some money down. There are no- money-down auto loan programs, but usually $500 to $1000 will help you get more favorable terms.
Will I qualify for auto financing if I still have the financed vehicle in my possession or in the process of having the bank pick it up?
Yes. Most bankruptcy auto loan lenders will approve your new loan as long as the deficiency balance was included in the BK and you have surrendered the vehicle. You can surrender the vehicle at the same time you are purchasing your new one.