Can I Get a Car Loan After Chapter 13 Bankruptcy?

Posted: Thursday, September 20th, 2018

If you are currently in Chapter 13 bankruptcy you cannot take on a car loan without court permission. After your bankruptcy has been discharged, usually between 3 to 5 years, you are free to apply for auto financing.

There’s no question that securing an auto loan can be much more difficult after bankruptcy. Banks, credit unions, and other financial institutions will be wary about the negative effect on your credit score. But don’t despair, Green Light Auto Credit can help. We are dedicated to providing real auto loan solutions to those with bad credit or no credit.

Getting a Car Loan During Chapter 13 Bankruptcy

Green Light Auto Happy Customer With Salesperson Shaking Hands
  • You will need to be pre-approved for the loan and be able to show proof of the loan amount, monthly payment amount, and interest rate. You will also have to revise your bankruptcy income and expense schedules to reflect the new car payment, showing that you can afford it.
  • You’ll have appear in court to file a motion to incur debt, and you will be required to produce information about the loan and explain why you need the car.

Getting a Car Loan After Chapter 13 Bankruptcy

  • Once you receive the discharge order from the court, you need to present it along with other required documentation to the lender.
  • Interest rates are generally higher after bankruptcy, so make sure to be realistic about how much car you can afford. Do the research.
  • You should try to make a downpayment of 20% for a new car, or 10% for a used car. This can help to lower your loan rate.

Find the Car Loan You Need Today

At Green Light Auto Credit we’ll work with you throughout the auto loan process so that you can get the car you need. Find out what our customers are saying, then apply for financing today. If you have any questions, or would like more information, please contact us online or call us at (800) 200-5551.