Getting a car during Chapter 13 bankruptcy: Yes, with the right dealership and trustee’s permission

Navigating the process of Chapter 13 bankruptcy can be complex, but it doesn’t mean you can’t get a car. By working with a dealership that understands bankruptcy laws and procedures, and obtaining the bankruptcy trustee’s permission, it is possible to secure a vehicle during Chapter 13 bankruptcy. In this article, we will explore how you can successfully obtain a car while going through Chapter 13 bankruptcy.

1. Understanding Chapter 13 Bankruptcy:

Chapter 13 bankruptcy allows individuals to reorganize their debts and establish a court-approved repayment plan. The plan typically lasts three to five years, during which the debtor makes monthly payments to a trustee who then distributes the funds to creditors. It’s important to understand and adhere to the requirements and restrictions imposed by the bankruptcy court.

2. Trustee’s Permission:

In Chapter 13 bankruptcy, major financial decisions, such as acquiring a car, usually require permission from the bankruptcy trustee. The trustee will evaluate the request based on the debtor’s ability to make the car payments while still meeting the obligations outlined in the repayment plan. Working closely with a dealership that understands the process can help ensure that the necessary steps are taken to obtain the trustee’s permission.

3. Selecting the Right Car:

Choosing the right car can be crucial in persuading the trustee to grant permission. Opting for a reliable and reasonably priced vehicle that aligns with your financial situation and the repayment plan can demonstrate responsible decision-making. A dealership that specializes in working with individuals in bankruptcy can help you select a suitable car that meets the trustee’s requirements.

4. Financing Options:

Securing financing for a car during Chapter 13 bankruptcy can be challenging. However, some dealerships have relationships with lenders who specialize in providing loans to individuals in bankruptcy or with lower credit scores. These lenders understand the unique circumstances and may be more willing to extend credit to those going through Chapter 13 bankruptcy.

5. Adhering to the Repayment Plan:

While acquiring a car during Chapter 13 bankruptcy is possible, it’s crucial to ensure that the car loan payments fit within the constraints of your approved repayment plan. The trustee will review your income, expenses, and the proposed car loan payments to ensure they are reasonable and won’t disrupt your ability to meet other financial obligations.

6. Rebuilding Your Credit:

Obtaining a car during Chapter 13 bankruptcy presents an opportunity to rebuild your credit. Making timely payments on your car loan and faithfully adhering to your repayment plan can demonstrate financial responsibility and improve your credit score over time. This can ultimately open doors to better financing options in the future.


With the right approach and by working closely with a dealership experienced in assisting individuals going through Chapter 13 bankruptcy, it is possible to obtain a car. By seeking the bankruptcy trustee’s permission, selecting an appropriate car, exploring financing options, and ensuring that your car loan payments align with your repayment plan, you can navigate the process successfully. Remember to prioritize adherence to the repayment plan and consult with a bankruptcy attorney to ensure compliance with all legal requirements. With determination and the right guidance, you can secure a car and work towards a brighter financial future.

Disclaimer: is owned and operated by World Auto Group in Chicagoland.

2525 West Jefferson Street
Joliet, IL 60435

Contact us

Email us

Auto Financing

> Bad Credit Car Loans

> Bankruptcy Information

> Credit Score Ranges

> Pre-Qualify By Phone Number!


> FAQs

> Contact

> Privacy Policy

© 2024 All Rights Reserved. serves as a prominent lead provider for lenders across the United States. The offered APR rates typically vary between 32% to 24%, contingent on the applicant's creditworthiness. It is essential to note that individual dealers or lenders may have consequences for non-payment or late payments. To obtain comprehensive details, kindly review your specific terms and conditions. When you apply through, please be aware that your credit will be assessed for lending purposes, which might influence your credit score. We sincerely appreciate your business and thank you for choosing