Can I get a car loan after filing chapter 13?

I've had to file for chapter 13 bankruptcy, but I need a car. I sold my old car in the hopes of paying off part of my debt and now need one again. Can I get a car loan after filing for chapter 13?

Answer
There are several steps in the process, but you can get a car loan with a chapter 13 bankruptcy. To get a car loan with bankruptcy, you’ll need pre-approval from a lender and permission from the court.
The first steps will be talking with your lawyer and shopping around with various lenders. Before talking to the court, you will need to get preapproved and know the following:
  • Approved interest rate
  • Total amount of the loan
  • Estimated monthly payments
  • Make, model, and year of the car
Once you know this, you will have to make amends to your expense schedule. If the proposed monthly payments don’t fall within your budget, you’ll need to have an incur debt motion filed. This motion informs the court you would like to add debt. They will need everything mentioned in the list above, the pre-approval documents from your lender, and the amended schedule for expenses.
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Lauren Smith
Answered on Nov 29, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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