Can I Buy or Refinance a Car During Chapter 7 Bankruptcy?

Filing for Chapter 7 Bankruptcy can be a difficult and overwhelming process. Even with the automatic stay protection, debtors may worry about their financial future, including whether they can still buy or refinance a car during bankruptcy proceedings.

The answer is yes, but there are qualification requirements and stipulations to consider before filing. People who are in the midst of Chapter 7 Bankruptcy may be able to purchase or refinance a vehicle through two methods—secured financing or reaffirmation. Secured financing is done by obtaining loan approval from an independent lender outside of bankruptcy court while a reaffirmation agreement involves coming to terms on an existing loan with the original creditor post-bankruptcy filing.

It’s important to remember that both options involve risk and should be thoroughly discussed with your attorney before proceeding.

The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of debt and start over.

Our goal is to help you find a fresh start FASTER!

Schedule your free consultation today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706