How to Buy a Car Before a Bankruptcy Discharge

How to Buy a Car Before a Bankruptcy Discharge

Bankruptcy can present problems if you need to acquire new credit, particularly for an automobile purchase. Thankfully, buying a car before your bankruptcy is discharged can be a simple process that just requires a little bit of legwork.

Contact your attorney and request a meeting with the trustee handling your bankruptcy case.

Explain the situation to the trustee and request written permission to finance a vehicle.

Offer the purchase order to the trustee to let him or her know what type of price range you will be requesting.

Once the request is approved, call automobile dealerships and find one that uses a lender who helps those in bankruptcy.

Make an appointment with the dealer to explore financing options. Make sure you bring the letter from your trustee, proof of income, proof of residency (utility bill) and two months of bank statements.


  • Auto loan interest rates for consumers in bankruptcy may be higher than usual and financial terms of the loan (term and fees) may be higher