Can I Buy a Car After Bankruptcy?

close up hand holding toy car and keys

If you’ve recently filed for bankruptcy or have a bankruptcy listed on your credit report, you may be wondering how this affects your ability to make major purchases like buying a car or home. Although a bankruptcy stays on your credit report for seven to 10 years, it’s possible to get approved for financing with a bankruptcy on your credit history.

When to Buy a Car After Bankruptcy

You don’t have to wait until your bankruptcy clears from your credit report to get approved for a car loan or financing; however, legal experts advise waiting to buy a car until after you’ve received your bankruptcy discharge or after your bankruptcy case has been dismissed.

Buying a Car After Chapter 7 Bankruptcy

According to, if you’ve filed for Chapter 7 bankruptcy, you should receive your discharge notice from the bankruptcy clerk approximately 90 days after your bankruptcy hearing. Once you receive your discharge notice, you’re likely in the clear to buy a car. Be sure to consult with your bankruptcy attorney to ensure compliance with bankruptcy laws and rules.

Buying a Car After Chapter 13 Bankruptcy also states that if you’ve filed for Chapter 13 bankruptcy, the process can take between three to five years to complete. If you need to buy a car during the Chapter 13 process, you may need to file a motion and get permission from the bankruptcy court to purchase a vehicle. Your bankruptcy attorney can provide further guidance on your ability to purchase a vehicle during the bankruptcy process.

Getting Approved for Auto Financing After Bankruptcy

There are finance companies and lenders who will approve you for financing despite having a bankruptcy on your credit report. Credit Acceptance is an indirect auto finance company that works with more than 12,000 car dealers across the nation to approve car buyers with Chapter 7 or Chapter 13 bankruptcy, bad credit or no credit for auto financing on new or used vehicle.

Are you shopping for a car and having trouble getting approved for auto financing due to bankruptcy? Once you complete the auto financing pre-qualification, we will connect you with three enrolled dealers in your local area that can help you start your credit approval to buy a car.

Start your auto financing pre-qualification today!