How to Buy a Car During Bankruptcy

Buying a car while you are in bankruptcy may be difficult, but it is not impossible. Car shopping requires a few more steps to complete and some guidelines to follow.

Instructions

Getting Bankruptcy Trustee Permission

1




Contact your attorney to request a meeting with your bankruptcy trustee, who must grant you permission to acquire credit before you can buy a vehicle. Meet with the trustee and discuss your need for a vehicle. Bring a copy of your paycheck stub so you can determine a monthly payment budget. If the trustee determines you are in need of a vehicle, a permission letter will be issued and filed in your case.

2




Shop for a lender that will grant you an auto loan. You may have to try several lenders before you find one that will. Offer the letter from your trustee as assurance as well as your proof of income. If you are unable to find a bank to offer you financing, try a finance company. Finance company interest rates tend to be higher, but if you need a car they may be able to help when a bank cannot.

3




Find a vehicle that fits within the guidelines your trustee has given you. You are not limited to dealerships, so try searching classified advertisements for vehicles offered by private sellers. Because most trustees are strict with their price parameters, you probably will be forced to shop for used vehicles. Have any vehicles you are interested in inspected by a certified mechanic and check consumer and professional reviews for reliability and safety ratings.