How to Buy a Car During Chapter 7 Bankruptcy. Buying a car during a chapter seven bankruptcy is a tricky process. You should talk to your bankruptcy lawyer to make sure that you are following the rules so that your bankruptcy will still go through.
Reaffirm any car loans that you can during your bankruptcy. The option to agree to continue to pay on your car or home is available to you. This is the easiest way to have a car during and after bankruptcy.
Wait until the 341 meeting of the bankruptcy to purchase your car. If you purchase the car before, the bank will liquidate it to pay off the debts from your bankruptcy.
Apply for a car loan through a company or bank that understands bankruptcy. You may start at a small local bank or credit union. Another option is to look online for a loan. You may also consider paying cash for the car instead.
Meet with the lenders when possible. Explain the reasons for your bankruptcy and how you plan to change so that it will not happen again.
Find a car to buy that you can afford. You may need to set your expectations lower, because most lenders will not lend you enough to purchase a brand new car.