Can I get a car loan while filing for Chapter 13?

I filed for chapter 13 bankruptcy about two years ago. Sadly, my car has died and it is pointless to get it fixed. I need to buy a new one, but can I get a car loan while still making payments towards bankruptcy?

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Answer provided by
Shannon Martin
Answered on Jul 12, 2022
A bankruptcy can last between three to five years, so it is understandable that you find yourself needing another car during this time. You can get a car loan; however, it is a lengthy process. Hopefully, the information below can help!
First, find a dealership that works with subprime lenders or is more flexible with their lending. Bankruptcy drastically impacts credit score and getting a loan will be a challenge. Once you find a dealership that will work with you, they will need to draw up a buyer’s order showing the loan details.
Next, you will need to file a Motion to Incur Additional Debt with your court-appointed trustee. If accepted by the trustee, they will submit the motion to the court for approval. Once it is approved, they will amend your debt payment plan and you can move forward with the purchase.
I understand that you are going through tight times right now and one of the best ways to save money is to ensure that you are getting the lowest rates for your car insurance. A loan for your car means adding additional levels of coverage, like comprehensive and collision, which can be costly.
By downloading the Jerry app, you can feel confident you are paying the lowest price possible. Jerry gathers personalized quotes from over 50 insurance providers and delivers the quotes straight to your phone—for free!
Good luck with everything! It’s challenging, but you can make it through this time.

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