Can you get a car loan after you file for Chapter 7 bankruptcy?

I'm going to file for Chapter 7 bankruptcy, but I want to know what happens to my ability to get a car in the future. Can I still get a car loan after filing for Chapter 7?

Eric Schad · Answered on Oct 19, 2021
Reviewed by Shannon Martin, Licensed Insurance Agent.
Sorry to hear about your financial straits—but hopefully things look up soon. I’m happy to say that getting a car loan after Chapter 7 bankruptcy is difficult, but not impossible.
In Chapter 7 bankruptcy, a trustee liquidates your assets in exchanged for discharging debt. While you can walk away from many of your loans in this fashion, the resulting derogatory mark on your credit can last up to 10 years.
However, you may still gain approval for a car loan if you take a few steps:
  • Rebuild your credit in any way possible
  • Pay all of your debts and bills on time
  • Save up to make a sizable down payment
You may also want to work with a local bank or credit union, as these organizations are typically more willing to work with locals. You should be wary of subprime lenders—they will certainly work with you, but will charge you exorbitant rates.
If you can find a lender, don’t forget to budget for your car insurance—you’ll still need full coverage if the car has a loan. The easiest way to get the best deal on your insurance is with the Jerry app—we’ll get you personalized quotes from top insurers so that all you have to do is choose the plan that works best for you.
Best of luck, and hopefully your financial situation improves soon!
View full answer 
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free