QUESTION
If I am filing chapter 7, can I get a new car?
Asked on Jul 29th, 2013 on Bankruptcy - California
More details to this question:
I plan on filing chapter 7 bankruptcy and choose to surrender my car. Will I be able to get or finance another vehicle that is better and newer so I will not be without a car? My current car I owe more than it's worth. How long will it take?
5 ANSWERS
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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You can. You may have to wait for the discharge to come through, which can take three to four months.
Answered on Aug 05th, 2013 at 10:57 AM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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There are a few lenders (see my December blog post) who work with debtors while in bankruptcy, and I know a few car dealers who work with those lenders. Otherwise, you'll need to wait until discharge. Plan to pay a high interest rate for a year or 2 until you can refinance.
Answered on Jul 31st, 2013 at 3:26 PM
Once your Chapter 7 is over, as long as you have a steady paycheck, many lenders will be willing to finance the purchase of another vehicle. You will want to shop carefully to make sure you get something you can afford.
Answered on Jul 30th, 2013 at 2:09 PM
Litigation Attorney serving Stockton, CA
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Patrick Jay Edaburn
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During the bankruptcy itself you will not be able to take out a loan. Once the case is over it will probably be 1-2 yrs before you can get a loan. If you get a new car before filing then you would probably be able to get a loan but you should document why you needed to get a newer car before filing
Answered on Jul 30th, 2013 at 1:00 PM
Yes, you should be able to find lenders who will lend you money for another car. Don't expect the interest rate to be good, but you should be able to find financing.
Answered on Jul 30th, 2013 at 1:00 PM