Can I Buy a Car After Declaring Chapter 7 or Chapter 13 Bankruptcy? 

Bankruptcy can happen to the best of us. Whether you’ve been through a divorce, lost your job, or suffered a medical emergency, there are a lot of reasons why bankruptcy is a viable solution for your financial woes. But just because you have a bankruptcy on your record doesn’t mean you have to take the bus, or ride a bicycle to work. While most major car dealerships won’t even let you in the front door the moment you tell them you need financing while in a Chapter 7 or Chapter 13 Bankruptcy, the team at Prestige Motor Works in Naperville, IL is here to help. We’ve worked with a lot of individuals who needed help to secure auto financing, and we’re willing to help you, too. 

Find a cartruck, or SUV in our certified pre-owned inventory, and then contact our team to learn more about Chapter 7 or Chapter 13 bankruptcy auto financing options.

Can I get an auto loan after Chapter 7 Bankruptcy?

If you’re going through bankruptcy, you don’t have cash to buy a car, but you still need to drive. Our auto finance experts have assisted hundreds of drivers going through Chapter 7 bankruptcy to get the vehicle that they need with an affordable payment. The steps you’ll have to follow to secure a car loan after you file a Chapter 7 are as follows:

1. Most of your assets have gone to creditors to repay your debt. While you won’t have to make payments after a Chapter 7 bankruptcy, you’re unlikely to have the assets you need to buy a car outright.

2. Consider waiting until after your bankruptcy is discharged. Securing financing is easier once all of your debts are cleared.

3. If you have been able to keep a large amount of cash during your Chapter 7 bankruptcy proceeding, you may want to use it to purchase a car, truck, or SUV without applying for a car loan. This is the easiest way to purchase a vehicle post bankruptcy.

4. Find a car, truck, or SUV that matches your budget at Prestige Motor Works, and visit us or call to discuss your options. Our dealership specializes in carrying the right inventory and working with the right lenders to finance the car you want.

5. If you are in a Chapter 7 Bankruptcy we currently have in-house and BHPH financing options to have you driving any vehicle in our certified pre-owned inventory just 1 day after filing a Chapter 7 Bankruptcy! No Bankruptcy Trustee letter, or court permission required if you choose to go through the Prestige Motor Works specialty financing program. We can have you driving your new car home today.

How can I get auto credit after Chapter 13 Bankruptcy

Chapter 13 bankruptcy has a few advantages over a Chapter 7 bankruptcy from a legal and accounting perspective. However, it’s actually a bit more difficult to secure an auto loan while going through the process. Prestige Motor Works is one of the only dealerships in the state of Illinois that specializes in working with clients that need to purchase and finance a car while working through a Chapter 13 Bankruptcy. The process is a bit more complex than purchasing a car in the Chapter 7 process, and for this reason most dealerships decline to work with buyers seeking financing while in a bankruptcy. Our dealership has the staff, knowledge, and expertise to make your car purchase as smooth as possible. The steps that you’ll need to take include:

1. You need to demonstrate that you absolutely need to take on the additional debt of purchasing a car, and it will not cause you to default on your repayment plan. For example, you’ll have to show a judge that you must have the car, truck, or SUV to get to work every day.

2. Choose a car that you can afford. We have several reasonably priced options available in our CPO inventory

3. Try to find a reasonable and reliable vehicle that you can afford. If you are looking at a Mercedes-Benz convertable vs. a Toyota sedan, the bankruptcy judge may decline your request to purchase the “fancy” Mercedes while in a Chapter 13 bankruptcy repayment plan, but grant you permission to purchase the Toyota.

4. Contact a member of our staff via phone or in person. You will need to fill out a financing application and select a vehicle.

5. Our dealership will issue a Full Approval Letter outlining your terms and conditions, including your interest rate, down payment, and monthly payment.

6. If you are happy with the approval from Prestige Motor Works, at your discretion, you can place a deposit to hold your vehicle in our ‘sold’ lot before taking delivery.

7. The complexity with financing a new or used vehicle while in a Chapter 13 Bankruptcy is due to the fact that the Bankruptcy judge must approve any additional new debt you take on. Prestige Motor Works staff will prepare the documentation needed for you to take to your lawyer/bankruptcy trustee so that a judge can approve the vehicle purchase.

8. Contact your lawyer or bankruptcy trustee, and notify them that you are looking to purchase a vehicle, present them with the bankruptcy loan documents prepared by Prestige Motor Works.

9. Hurry up and wait! Your lawyer or bankruptcy trustee will need to go before a judge with the Prestige Motor Works loan documents, and request that you be allowed to take on the addition debt. This process typically takes 5-10 business days in most counties in Illinois.

10. The judge will approve your request, and issue a written bankruptcy trustee letter allowing you to finance your new vehicle. Present the trustee letter to Prestige Motor Works, and you are ready to take your car home the same day!

Does Prestige Motor Works offer bad credit auto loans?

Absolutely. Auto loans are a great way to rebuild or build your credit rating. If you finance a vehicle thorough our Subprime or Non-Prime Credit program, we guarantee that your loan payments will be reported to all 3 credit bureau on a monthly basis, helping you to rebuild your credit.

From drivers who have bad credit to those who have no credit, the Prestige Motor Works team in Naperville, IL can help you get into the certified pre-owned car, truck, or SUV that you deserve. We’ll even work with your budget to find a realistic monthly payment plan that is in line with your financial needs and more importantly a car payment that you can afford! Find your next vehicle in our inventory, and then apply for financing online.

Have questions? Contact the Prestige Motor Works team!

Do you still have questions or want to get started on your bankruptcy or bad credit auto loan? Get in touch with the experts at Prestige Motor Works in Naperville, IL by calling (630) 780-6439 or send us a message through our contact form. Getting out of bankruptcy and rebuilding your credit starts with an auto loan from us. Reach out today for the help that you need to get back on your feet. 


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Monday 10:00 AM - 6:00 PM
Tuesday 10:00 AM - 6:00 PM
Wednesday 10:00 AM - 6:00 PM
Thursday 10:00 AM - 6:00 PM
Friday 10:00 AM - 6:00 PM
Saturday 10:00 AM - 6:00 PM
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