You made that big step to get the fresh start and your family deserve and now you are thinking of your future. A common question almost every client asks is if they can get a new car after filing for bankruptcy. We have good news for you, yes you can! You are able to purchase a new vehicle with cash or even finance one through a lender.
You could find yourself in a much more stable financial situation after filing the bankruptcy. Your garnishment has stopped, you are no longer making minimum payments to credit card companies or making debt installment payments and you are able to begin saving. The extra disposable income can become a nest egg to purchase a car.
If you are not able to pay outright for a vehicle you can obtain a new car loan. Most car lenders will not deny a credit application to a person or couple that has declared bankruptcy in the past.
At this point, you are no long a risk for numerous reasons: you are debt free, you cannot file bankruptcy on the new debt right away and your income will show you can maintain this new car payment.
The main thing to watch out for will be the interest rate. Lenders will typically approve the new car loan but the interest rate will be higher than what you are previously used to.
Now you are wondering how long do you have to wait to get this new car loan? Will it take years. No! If you filed a Chapter 7, there is no set waiting period to get a new car or new car loan but you need wait until the trustee has filed a no asset report after the 341 Meeting of Creditors. If you filed a Chapter 13, the trustee has to approve the car purchase. You should talk to your attorney prior to looking for a car to discuss your options.
Attorney Shari Lynn Kasriel has worked extensively with residents of Northeastern Wisconsin to secure their financial freedom through filing Chapter 7 and Chapter 13 bankruptcies. She also advocates and represents disabled clients in their Social Security disability claims.