Can you get a car loan after filing Chapter 7?

I had to file bankruptcy. Can I still get a car loan? I need to be able to get to and from work. I’m not sure what to do. Will I be able to get a car loan after Chapter 7?

Answer
Chapter 7 stays on your credit report for about 10 years, which can make getting a car loan after filing bankruptcy difficult. But it’s not impossible.
You can do the following to improve your chances of getting a loan in the near future:
  • Talk to your attorney to see if they can help you work out a plan of action.
  • Get a cosigner with good credit.
  • Put down a larger down payment.
  • Rebuild your credit.
When you do qualify, be prepared to face less-than-favorable loan terms. This may mean loans that come with higher APRs and/or longer term lengths.
If you get a car loan you are unhappy with, know that you aren’t necessarily stuck with it. Upon improving your credit after several on-time loan payments, you may be able to refinance into a loan with more favorable terms.
You can do this quickly and easily with the Jerry app. Jerry removes the hassle by instantly connecting you with top companies so you can compare offers from multiple lenders to find the best option for you. On average, car owners who refinance save $85 a month on their loans.
Lauren Smith
Answered on Nov 22, 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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