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Can I get a car loan after a bankruptcy discharge?
I just got through bankruptcy proceedings, but I had to sell my car to pay off my car loan. Now that I’m done with bankruptcy court, I want to get a new car to get to work. I have a bit of money for a down payment, but I will need to finance the car. Can I still get a car loan following a bankruptcy discharge?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
That’s great news that you’re finally out of bankruptcy proceedings. Hopefully, you’re less stressed financially and you learned something along the way.
After a bankruptcy discharge, you can get a
car loan
, but you may find the interest rate and terms are unfavorable.Because your credit score undoubtedly took a hit after your bankruptcy, you’re now a high-risk borrower. As a result, finding a willing lender becomes a difficult task. Some lenders may not work with you at all.
If you still have the contact number of the court-appointed bankruptcy trustee or your bankruptcy lawyer, give them a ring. They may have a list of approved lenders that work with people specifically like you.
Even if you get approved for a car loan, expect your interest rates to be sky-high and the loan to come with stiff fees and penalties for late payments. You’ll want to shop around to find the best terms and interest rates.
If you want to save money on other car expenses to put toward your loan, download the Jerry app. As a licensed broker,
Jerry
helps you find and compare quotes from over 50 top providers in minutes. When you find a great rate, Jerry can help you buy your new coverage and save an average of $879 per year!View full answer
- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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