Filing Chapter 7 Bankruptcy and Securing a Car Loan

If I file Chapter 7 and able to secure a reasonable loan that pays off in 48 months, would this affect my discharge? Also why do creditors want to wait until your chapter 7 341 meeting before they finance to you. I thought you can’t add anything to your bankruptcy after you file in chapter 7 or is it after you 341 meeting.

When you are in bankruptcy, you cannot incur new debt, such as the loan you are referring to, unless you get court approval. Because a chapter 7 bankruptcy is usually concluded with a discharge in 4 to 6 months, it is very very uncommon for someone to seek court approval for a new loan while in bankruptcy. There are times when your attorney may advise you to secure a reasonable loan before you file bankruptcy. If that happens, your attorney may also advise you to complete a reaffirmation of that debt once you file the bankruptcy.

For more information regarding buying a car and bankruptcy, we have a great┬áresource – How Bankruptcy Impacts Your Car

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