Can you get a car loan after filing for bankruptcy?

I had to file for bankruptcy a couple of months ago, but I was able to keep my old car. However, a tree fell on it and totaled it. I’m getting a payout from my insurance company, but it won’t be enough for a new car. Can you get a car loan after filing for bankruptcy?

Answer
I’m sorry to hear that a tree has totaled your car. It is possible to get a car loan after filing for bankruptcy, but you will need to talk to your attorney and get approval from the courts.
Because you’ve filed for bankruptcy, your pool of potential lenders is small. Talking to your attorney can help you find lenders who specialize in loans for those with a finalized bankruptcy. Other things that can help are making at least a 20% downpayment and finding a cosigner.
  • A good downpayment is 20% of the car’s total price.
  • A cosigner is someone with good credit who is willing to vouch for you and sign onto the loan. A cosigner is liable for the loan and is on the hook for paying if you’re unable to.
You’re going to have to rework your finances to cover this loan and prove that you can afford it to the court. Typically, you’ll need to provide the court with documents detailing your budget and the loan’s terms and conditions.
One way to save on expenses and help budget is with the Jerry app. Jerry collects quotes from 50+ top insurers to ensure you’re getting the best deal on your car insurance.
Lauren Smith
Answered on Dec 01, 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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