Can I get a car loan after a Chapter 7 discharge?

I finally finished with Chapter 7 bankruptcy court. Because I had more equity than the equity exemption allowed, I had to sell my car. Public transit isn’t an option where I live, so I need to get a car to go to my job. I want something reliable, but I don’t have a ton of cash on hand. Can I get a car loan following my Chapter 7 discharge?

Answer
Congratulations on your bankruptcy discharge! While it may not seem like an achievement, it’s a stepping stone to a better financial future.
To address your question, you can get a car loan after a Chapter 7 discharge, but finding a lender may be tricky.
After bankruptcy, your credit score probably took a hit. As a result, lenders now see you as a high-risk borrower. In some cases, lenders may choose not to work with you at all, while others will offer high interest rates and rigid terms on the loan, especially when it comes to late fees.
Shopping around for a car loan is always your best bet to get more favorable terms. A great place to start is with the bankruptcy court or your attorney. Either may have a list of lenders that work directly with people in your position.
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Eric Schad
Answered on Dec 01, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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