While bankruptcy may be the best possible step to take given your own personal situation, there is no denying that it will make certain things more difficult for the immediate future. Case in point: while it is not impossible to buy a car after bankruptcy, the process does require you to keep a few very important things in mind.

Your Down Payment

buying a new car after bankruptcyMany people assume that it will be impossible to get a loan for a car after bankruptcy. This is false – in fact, some lenders are eager to work with people who have recently gone through bankruptcy because they know the debt can’t be discharged for many years. However, you still need to focus on a few core areas, chief among the being your down payment.

The larger the down payment that you can pull together by the time you go car shopping, the easier it’ll be to find a car loan with favorable terms. This is because when you borrow less money, you’re considered less of a risk to the lender. Consider trading in an existing vehicle to help in this regard.

Gather as Much Credit Information as Possible

When you buy a car, it’s common for multiple lenders to pull your credit report at the same time. As your credit score is already in a vulnerable position after bankruptcy, this could do more harm than good. Collect all information that you can – including copies of your credit report, your pay stubs and more – and take it all with you in an effort to make the process go as smoothly as possible.


Shop around for the best possible car loan that you can find, but don’t expect to find the perfect one. Instead, focus on taking out a loan that you can live with, paying your bill on time and be ready to refinance in the not-too-distant future as your score recovers.

Bankruptcy can be a difficult time for everyone involved, but it’s important to understand that your life can and will resume long after the filings are done. If you have any additional questions about buying a car after bankruptcy, or if you’d just like to sit down with a bankruptcy attorney and discuss your own situation in a little more detail, don’t delay – call Clark & Washington today.