If you need a car loan, it’s much better to wait until your Chapter 7 bankruptcy has been discharged before you apply.
Technically speaking, you are able to apply for an auto loan after the 341 meeting has taken place, but very few subprime lenders will consider applications until the bankruptcy has been discharged.
How long do you have to wait to buy a car after Chapter 7?
If you’re wondering if you can buy a car after chapter 7 bankruptcy, the answer is yes. But you may have to wait a few months. Approximately 60 days after your 341 meeting, your bankruptcy will be discharged. At that time, your previous debts are expunged and you may begin to apply for credit, including an auto loan.
Can you purchase a vehicle while in Chapter 7?
The debtor can usually get into a new car, or even a late model used car still under warranty, even with bad credit, provided they have decent income. (Learn more about reaffirming a car loan in Chapter 7 bankruptcy.)
Will my credit score go up after Chapter 7 discharge?
In fact, you may even see your score start improve a bit shortly after the bankruptcy hits your report. That’s because you technically no longer owe the debts that got discharged, which could help your credit utilization rate (how much debt you’re carrying versus your total credit limits).