Can I really buy a car after filing bankruptcy?!

January 6, 2017

 

Yes, you can buy a car almost immediately after filing a Chapter 7 bankruptcy. There's also a process to let you buy a car in a Chapter 13 bankruptcy, too!

 

Before you file bankruptcy, you may decide your current car payments are too high. Maybe you want to give the vehicle back to the creditor and then wash your hands of the while mess. Maybe the vehicle has high miles, maybe it is in bad condition, or there may be other reasons why you no longer want the vehicle. Your vehicle debt probably exceeds what it is worth anyway.

 

If you don't want your car, it is best to "surrender" it. This means you file bankruptcy and let the lender repossess and sell your current car. You then can purchase another vehicle 

 

In a lot of cases, it is easier to get financed for a vehicle after you file a Chapter 7 Bankruptcy case. This is true even if your credit score was poor.  Car lenders are willing to extend credit knowing that you are no longer obligated on other debts. In fact, in St. Louis, we work with several lenders like Suntrup Nissan and Weiss Toyota to put you in a vehicle immediately after filing a Chapter 7 case!

 

During a Chapter 13 bankruptcy, you can also secure financing and replace your current vehicle, but it does require some court approval. Contact your attorney for details of how to get a new vehicle while in a Chapter 13 plan. 

 

While your situation may vary, it's quite possible you can come out of your bankruptcy with a new car, better payments, and the freedom from other oppressive debts. 

 

The bankruptcy lawyers at Law Office of Tracy A. Brown, we can assess your individual situation and come up with a winning solution for you. 

 

 

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