Car Loans After Bankruptcy in Las Vegas
A bankruptcy does not mean you can't buy a car. The lenders we work with see bankruptcies every week, both discharged and still open, and plenty of people drive away from our lot with one on their record. What changes is the paperwork you bring and, in a Chapter 13, whose permission you need first.
Charlie Cheap Car has sold used cars in Las Vegas for 25 years. We are family owned and veteran owned, open seven days a week, and we work with several lenders, including ones for past bankruptcies, repossessions and no credit history. Financing is subject to lender approval.
After a Chapter 7 discharge
A Chapter 7 usually ends with a discharge a few months after you file. Once it is discharged, the debts it covered are gone, which leaves more of your income free for a car payment, and income is what lenders look at most. Some lenders will consider you soon after the discharge; others want to see some time pass and some new credit first. We send your application to the ones that fit.
Bring the discharge order from the court. Without it, a lender may treat the bankruptcy as still open.
During a Chapter 13
A Chapter 13 is a repayment plan that runs three to five years. While you are in it, you generally need permission from your trustee before taking on a new loan, a car loan included. Talk to your bankruptcy attorney first; they will usually ask the trustee for you. The trustee looks at whether the payment fits your plan's budget, so a sensible, reliable car is easier to get approved than an expensive one.
Bring the trustee's written approval and a copy of your plan. With those in hand, the lenders that work with open Chapter 13 cases can review your application properly.
What lenders look at
- Steady income you can show, from pay stubs, bank statements or benefit letters.
- Time at your job and address.
- Your down payment.
- The bankruptcy itself: which chapter, when it was filed and when it was discharged.
- New credit since: even a small, well-paid account helps show the fresh start.
What to bring
- Your discharge order (Chapter 7), or the trustee's written approval (Chapter 13)
- A valid driver's license
- Proof of income: recent pay stubs, or bank statements if you are self-employed
- Proof of address, such as a utility bill
- Your down payment
- Proof of insurance, or we can help you sort it out
More detail: what to bring to get approved for a car loan.
Rebuilding your credit with a car loan
A bankruptcy stays on your credit report for up to ten years for a Chapter 7, and usually seven for a Chapter 13. A car loan you pay on time every month is one of the clearest ways to show lenders your new track record. Choose a payment you can make comfortably even in a slow month: a missed payment hurts more right after a bankruptcy than at any other time.
Be careful of promises
No dealer or lender can promise approval before a lender has seen your application. If someone guarantees it, ask what the catch is. We tell you plainly what the lenders came back with, in writing, before you sign anything.
Common questions
How soon after bankruptcy can I get a car loan?
It depends on the lender. Some will look at your application soon after a Chapter 7 discharge; for a Chapter 13, you can apply once your trustee approves. Call us and we will tell you what applies to your situation before you make the trip.
Can I keep the car I have now?
That is a question for your bankruptcy attorney. In a Chapter 7, keeping a financed car usually means signing a reaffirmation agreement with its lender.
I also had a repossession. Can I still get approved?
Often, yes. See buying a car after a repossession and bad credit car loans.
Can I trade in my car?
Yes, even one you still owe money on, as long as your attorney or trustee agrees. See Trade Your Car.
How pricing works here
Every car shows the vehicle price with our dealer fees listed under it: $752.25 in total for documentation, title and smog. Tax, license and registration are extra.
Where to find us
5015 W Sahara Ave Ste 127, Las Vegas, NV 89146. Open seven days a week; see hours and directions.
Financing is subject to lender approval; not all buyers qualify. This page is general information, not legal advice. Talk to your bankruptcy attorney before you take on a new loan.
