Purchasing a Vehicle After Bankruptcy

One of the most common questions I get is, “Will I be able to purchase a vehicle after I file bankruptcy?”

The simple answer is, “Absolutely, yes.”

As with everything, there are details behind that simple answer:

• Chapter 7 Bankruptcy – Purchasing a vehicle after filing chapter 7:

  • Are you allowed? Yes. The bankruptcy court is not concerned with what you purchase AFTER the CHAPTER 7 is filed (Chapter 13 bankruptcy is a different story; see below).

  • Will you be able to? Yes, although it depends on your situation. A vast majority of my clients inform me that “in the week after filing chapter 7, [they] receive more car loan and credit card applications than [they’ve] ever seen before.” My reason for sharing that is to show that the opportunity will be there. Of course, you will want to be responsible with your purchase.

• Chapter 13 Bankruptcy – Purchasing a vehicle while in a Chapter 13 repayment plan:

  • Are you allowed? Yes. There is a simple process to get court approval to finance a vehicle while in a chapter 13 bankruptcy.

  • What is the process? If you need a new vehicle while in chapter 13, you should:

    1) Shop for a vehicle

    2) Find financing for the specific vehicle you find

    3) Submit to your attorney the vehicle information, as well as all the financing information, and your attorney will submit the information to your Bankruptcy Trustee for approval (or denial).

  • This process usually only takes a few days.

Bankruptcies are designed to HELP your financial situation, and having a reliable vehicle is part of that equation. To learn how filing bankruptcy can help your situation, feel free to call/text/email me, Attorney Lucas Ruffing. I am here to help.

Thanks for Reading,

Lucas Ruffing, Attorney
740-815-1114 (call/text)
LucasRuffingLaw@gmail.com