Can I Get A Car Loan After Bankruptcy?

Something that people frequently wonder when considering the possibility of a bankruptcy filing is the extent to which bankruptcy will affect their ability to take out new loans post-filing.  Among the various types of loans that are considered under such circumstances, perhaps the most common that people may typically ponder are car loans.  In brief, the answer is that bankruptcy does not inherently limit your ability to take out a vehicle, as there is no provision of the bankruptcy code that prohibits you from incurring a new loan after filing.  However, there are still several other things to consider in practical terms when analyzing this, including the chapter of bankruptcy filed.

If you have filed a Chapter 7 bankruptcy, you will generally need to wait until the discharge has gone through (roughly three months after the filing date) as lenders will often be a little reluctant to begin a new car loan will the Chapter 7 is still in progress.  When the discharge has gone through though, you should be all set to proceed.  Generally, the farther you are in the credit repair process, the better the interest rates offered by a lender will be, meaning that it is often to your benefit to make use of our 90 day credit repair program if you are looking to purchase a car after a Chapter 7.

Alternatively, if you file a Chapter 13 bankruptcy, you can look at taking out a new car loan as soon as your plan is confirmed!  Prior to that, a new car loan could be taken out, but you would need the courts permission to do so.  Once the plan is confirmed however, you can take out a car loan without needing obtain any further permission from either the court or the trustee!  There are some lenders that will be reluctant to offer a car loan within the first year after filing a Chapter 13, but there is no express prohibition against doing so.  

CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM

There are many reasons that you might be looking into the possibility of taking out a car loan after filing bankruptcy, not least of which is that you may wish to do so to purchase a car to replace a vehicle that has been surrendered through your bankruptcy filing.  The good news is that taking out a new loan is often feasible!  To learn more about how acquiring a new vehicle after bankruptcy can work, please feel free to reach out to our firm!  We would be more than happy to advise you on the nature of the bankruptcy process and answer any questions that you might have about how it can be tailored to fit your individual needs. So, when the time is right, or when you are ready, please don’t hesitate to reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com.