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Can I buy a car while in chapter 7 bankruptcy?

Rockford, MI |

While I am sure it is inadvisable, I am wondering if I am legally allowed to purchase a car while before the discharge of my chapter 7 bankruptcy without risking a dismissal. When I filed for bankruptcy I owned one car, it is over 15 years old with more than 300,000 miles on it and I prayed it would last until I was done making a fresh start. However, yesterday it broke down and will cost about 1500 more than it is worth to fix it and its just not worth it. I need a car to get to work, to my bankruptcy dates, to raise my child, but I dont want to risk having my case thrown out.

as a side note, I dont have the money to fix it anyway. Hence the need for a bankruptcy, therefore my two choices are buy a new(er) car or go carless and lose my job.

Attorney Answers 3


  1. You can purchase a vehicle after you file for bankruptcy. Most Chapter 7 filers get multiple offers to finance vehicles right after they file. The interest rates will be horrible, so you want to use restraint and borrow as little as you can to get what you need.

    You can reach Harkess & Salter LLC at (303) 531-5380 or info@Harkess-Salter.com. Stephen Harkess is an attorney licensed in the state and federal courts of Colorado. This answer is for general information only and does not create an attorney client relationship between Stephen Harkess or Harkess & Salter LLC and any person. You should schedule a consultation with an attorney to discuss the specifics of your legal issues.


  2. There wouldn't be any problem with you purchasing a vehicle, but it you need to get financing, good luck. Most lenders will not be able to qualify you for financing until after you receive your discharge.

    Hope this perspective helps!


  3. In hind sight, perhaps you should have purchased your replacement vehicle before you filed. Since you have filed, your options are limited. You should contact "722 redemption" which is a company that will finance you through US Bank at a high interest rate, but sends you to car dealers to make your best deal. Not like your local overpriced "finance here" local scammers. If you have a credit union, they may be willing to work with you if they were not hurt in your bankruptcy.