Can you get a car loan after chapter 13?

My chapter 13 bankruptcy case has been discharged. As an attempt to move forward, I got a new job. I’m going to need a car. Can I get a car loan after chapter 13?

Answer
Although bankruptcy is a stressful situation, thankfully, you can get a car loan after filing for chapter 13. The only additional thing you’ll need to provide is the paperwork to show lenders you’ve completed all the court-ordered financial planning and that the case is closed.
Since chapter 13 bankruptcy will stay on your credit score for about seven years, it will affect the deal you get. Commonly this means a higher interest rate or APR, so you’ll want to ensure you look at several lenders before signing an agreement.
Ideally, try to find lenders that specialize in car loans for people with bankruptcies. You can also check with your local and national banks, credit unions, online lenders, and dealerships. It can also help to have a cosigner. Most lenders will be more likely to approve a loan for a riskier borrower if they have a cosigner.
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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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