You can refinance a post-bankruptcy car loan, but you generally have to wait for at least a year to pass in order to qualify – as is the case for any other auto loan.

Do I have to give up my car in Chapter 7?

Here’s an overview of your options if you want to keep your car in Chapter 7 bankruptcy. You don’t have to give up all of your property when you file for Chapter 7 bankruptcy. If you own a car, you’ll likely be able to protect (exempt) a particular amount of the vehicle’s equity (each state’s law varies).

What to do if you want to return a financed car?

Notify the dealership and finance company. If your sales agreement permits returning a financed vehicle, contact the auto dealer and your auto lender immediately. Mention you intent to return the car and cancel the auto loan.

What happens if I give my car back to the lender?

If you return the car to the lender, the lender will likely sell it. It will apply the proceeds of the sale to your car loan balance, after reimbursing itself for the costs of sale and certain fees. Often the sale proceeds are not enough to cover your loan balance; the remainder of the loan amount is called the deficiency.

Can you get a car loan after bankruptcy?

But the lender rejects you because of your bankruptcy. They say you won’t be considered for a car loan until two years have passed after you received your discharge. Needless to say, this is very disappointing and frustrating for the people who have been waiting for their bankruptcy discharge thinking it would help them get a car loan.

When do I have to return my car to the dealership?

Depending on the auto dealer, you may be able to return a financed vehicle within a specific time period and cancel the agreement, usually within three days of the purchase. Read your sales agreement. Notify the dealership and finance company.