Chapter 7 Bankruptcy:
- Secured Debt: If you had a secured debt, such as a car loan, during the bankruptcy, the lender may require you to wait a certain period of time before approving a new loan. This period can vary, but it's typically 2 to 4 years.
- Unsecured Debt: For unsecured debts, including credit card debt, the waiting period is generally shorter. However, it's still advisable to wait at least 2 years after the discharge before applying for a car loan.
Chapter 13 Bankruptcy:
- During Repayment Plan: While you are making payments under your Chapter 13 bankruptcy repayment plan, you may be able to purchase a car with the approval of the bankruptcy court. However, the lender might still consider the bankruptcy when evaluating your creditworthiness.
- After Repayment Plan Completion: Once you have successfully completed your Chapter 13 repayment plan and received your discharge, you can typically start applying for car loans. Lenders may still be cautious, but your waiting period may be shorter than if you filed Chapter 7 bankruptcy.
It's important to note that these are general guidelines and the specific requirements may vary depending on your individual circumstances and the lender's criteria. It's advisable to consult with a lender or financial advisor to get accurate information about your eligibility for a car loan after bankruptcy.
