Can I buy a car after I file Chapter 7
February 3, 2023 | Bankruptcy, Buying a Car, Chapter 7
People call me frequently who have a real need to file Chapter 7 bankruptcy but are hesitant.
People are afraid they will lose their cars even though they are up to date on their car notes.
There is no need to worry. Finance companies want your money, not your car.
When you file Chapter 7, you continue to make your car payments, and everything is fine.
Others say they need Chapter 7 but need to buy a car but think they can’t.
When a person files Chapter 7, they are free to buy anything and free to borrow money.
Why would a finance company lend you money to buy a car?
1. When you file Chapter 7, you get rid of debts. Now you have more money.
2. You can’t file Chapter 7 for another eight years.
3. Your score generally goes up after you file Chapter 7.
People often ask me if my clients get cars after filing Chapter 7.
The answer is “Yes.”
We know a couple of dealers who sell cars to my clients.
They sell decent cars with decent terms.
Of course, you must have an income and meet their guidelines.