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Chapter 7 Bankruptcy Filers: Get Your Keys to a Fresh Start Here!

Get back on the road with the car you need while improving your credit with a Day One Chapter 7 Bankruptcy car loan.

Why Chapter 7 Bankruptcy Filers Should get a Car Loan

A Chapter 7 Bankruptcy gives you a fresh start by literally wiping away your worst debts. Make the most of your clean slate by financing a vehicle purchase to enjoy these benefits:

Restore Your Credit

Your Chapter 7 Bankruptcy makes a big chunk of your worst debts go away. This gives you the chance to start restoring your credit even before your Chapter 7 Bankruptcy process is finalized.

Get Out of a Bad Loan

If you owe more on your current vehicle than it’s worth, you can use a Chapter 7 Bankruptcy car loan from Day One to get out of your underwater or upside-down loan with a better deal.

Improve Your Ride

To make the most of your fresh start, use our Chapter 7 Bankruptcy car loan to get a better car with lower miles that will cost you less in the long run.

Benefits of a Day One Bankruptcy Car Loan

You’ll get the most benefits when you choose Day One to find the bankruptcy car loan that best meets your needs.

No Money Down

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No Money Down

We can offer most customers no-money-down loans with payments that will fit your budget.

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No Money Down

We can offer most customers no-money-down loans with payments that will fit your budget.

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Unbeatable Experience

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Unbeatable Experience

We’ve been working exclusively with bankruptcy customers for years. We know how this works and how to make it work for you.

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Unbeatable Experience

We’ve been working exclusively with bankruptcy customers for years. We know how this works and how to make it work for you.

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Top Lenders, Better Rates

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Top Lenders, Better Rates

We’ve spent years developing relationships with lenders who work specifically with bankruptcy customers.

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Top Lenders, Better Rates

We’ve spent years developing relationships with lenders who work specifically with bankruptcy customers.

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The Best Cars

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The Best Cars

A great selection of top-notch late model vehicles from sedans to SUVs to pickup trucks and anything in between!

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The Best Cars

A great selection of top-notch late model vehicles from sedans to SUVs to pickup trucks and anything in between!

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Ready for your Chapter 7 Bankruptcy fresh start? You’re just a few clicks away from making it happen!

Mistakes to Avoid with a Chapter 7 Bankruptcy

Our extensive experience making Chapter 7 Bankruptcy car loans means we’ve seen far too many people make one or more of the following 9 mistakes that we can help you avoid.

  • Buying a Car for Cash

    Paying cash for a car won’t help you rebuild your credit. You need to get a car loan and make on-time monthly payments that get reported to the credit bureaus to fix your credit.

  • Getting a BHPH Car Loan

    BHPH stands for “buy-here-pay-here” car dealerships, which means they offer what people also call “in-house financing.” Don’t do it! They’re notorious for gouging customers with horrible loan terms.

  • Buying a Car with High Miles

    When you settle for an older vehicle with high miles, you often end up paying a lot more in repairs that you expected.

  • Buying an Expensive Luxury Car

    You probably won’t get approved, and even if you do, what happens if things change and you suddenly can’t afford it? Luxury cars also cost a lot more to maintain, repair, and insure.

  • Buying a Brand New Vehicle

    The big hit you take on depreciation means you’ll be “underwater” or “upside down" on the loan for years to come. Used cars are cheaper. Buying a high-quality used vehicle gives you more car for a lot less money!

  • Not Getting GAP Insurance and Service Contracts

    GAP (guaranteed asset protection) insurance is important because it covers the difference between the balance of a loan due on a vehicle and what an insurance company pays in the event of a total loss. A service contract ensures you won’t be surprised with huge repair bills when something goes wrong.

  • Buying a Car for Someone Else

    This is nearly always a bad idea because guess who’s on the hook for it no matter what goes wrong – YOU!

  • Buying a Salvage Car

    Salvage cars are cheap, but almost always come with a host of problems that will start appearing and costing you tons of money in repairs. Just say no!

  • Buying a Car You Can’t Afford

    The last thing you want to do with your fresh start from bankruptcy is buy more car than you can really afford. If you experience any kind of hiccup with your income, you could end up in trouble. You should avoid even going for anything that results in a monthly payment that would be a stretch for you to make. Set yourself up for success by shopping for vehicles that are well within what you can afford.

How can you avoid making these mistakes?

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How It Works

It’s as easy as 1-2-3!

Getting a bankruptcy car loan with Day One is as easy as 1-2-3!

1. File for Chapter 7 Bankruptcy

As soon as you get your case number, we can work with you!
Contact us now!

2. Get Approved

Fill out our short application form so we can find the right Chapter 7 Bankruptcy car loan for you.
Apply now!

3. Get Your Car!

Finding the car you want is easy with our great selection of late-model, low-mileage vehicles in many makes and models!
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Your satisfaction is our top priority. You’ll love being treated like a VIP with stellar customer service. Our 3-day money-back commitment guarantees your satisfaction!

Check Out Your Next Ride!

We have a great variety of makes and models available. Here are just a few of our recent sales. Roll with our most popular models or let us know what your ideal car is!

Day One Eligibility Guidelines

Day One Credit takes pride in helping nearly everyone who comes to us, but there are a few situations where a bankruptcy car loan isn’t the best option. Read below to see when we think you’re eligible and when we think you are not.

When We Think You’re Eligible for a Bankruptcy Car Loan

When We Think You’re Qualified

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  • Income

    Minimum gross monthly of income of $2200 per month as shown on either W-2 forms from employer or 1099 forms for those who are self-employed.

  • Bankruptcy Status

    As soon as you have filed your Chapter 7 Bankruptcy and have your case number, we can work with you – no need to wait! If your Chapter 7 Bankruptcy was recently discharged, we can also work with you. We have programs for both open and recently discharged Chapter 7 Bankruptcies.

  • Valid Driver’s License

    Your driver’s license must be up-to-date and not suspended.

When We Think You’re NOT Eligible for a Bankruptcy Car Loan

When We Think You’re Not Qualified

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  • If You Have a Newer Car

    You already have a great car. If your current vehicle is newer, has relatively low mileage, is paid off or close to being paid off, then it makes sense to stick with it.

  • Income

    No stable income or you know you’re income is about to drop or your expenses are about to go up (or both).

  • Bankruptcy Status

    The cosigner on your car did not file for bankruptcy. You can damage your cosigner’s credit if they did not file BK with you. You have the right to surrender your car, but your cosigner does not have the same right, and the lender will still go after your cosigner.

Check Out Your Next Ride!

We have a great variety of makes and models available. Here are just a few of our recent sales. Roll with our most popular models or let us know what your ideal car is!

Got questions? We’ve got answers!

Read the top questions customers ask us!

Do you offer a no-money-down option?
YES! And we’ll help ensure your payments are affordable as well.
Why should I buy a used car?
The goal is to buy a used vehicle because you get more bang for your buck if it’s a newer car with fewer miles. They’re way cheaper than buying brand-new and will cost you less in the long run.
How soon can I get a new loan?
At Day One Credit, filling out our auto loan application takes less than five minutes. And then you’ll have our answer in just minutes!
Do I have to wait until my BK is discharged?
Many bankruptcy filers think they have to wait some magical period of time before they try to get a car loan or wait until the BK is fully discharged. Not true! As soon as you file your bankruptcy you can apply.
What is a Fresh Start Program?
Bankruptcy laws were designed to help people get out from under crushing debt loads and make a fresh start. A Fresh Start Program means a loan program designed specifically to help consumers get the credit they need even though they have filed for bankruptcy. At Day One, that means getting a car loan in spite of a bankruptcy with our specialized network of lenders.
Can I get out my current underwater car loan?
Yes, that is another major advantage of working with Day One. We’ll help you get out of that upside-down loan and get you a quality car that’s more affordable.
What would be my payment?
Your monthly payment depends on factors such as the price of the vehicle, your down payment (if any), length of the loan, and the interest rate.
What would be my APR?
Your interest rate and APR vary greatly because they depend on many factors, including your credit, the vehicle’s age and condition, the length of the loan, and more. With a bankruptcy, your APR will be higher than customers with good credit, but better than bad credit borrowers who haven’t filed for bankruptcy because you now have less debt. To figure out your rate, fill out our quick financing application and we will get back to you in minutes!
Can I get a better rate if my BK is discharged?
Maybe, but it depends. If you took specific actions while your BK was open (3-4 months on average) to improve your credit or save up money for a down payment, you might get a slightly better rate. But many people simply can’t wait to get the car they need, and waiting may not make much of a difference at all.
What kind of car and how big a loan can I get?
There are no restrictions on the type of car you buy, except that you have to be able to afford it! Affordability depends on your payment-to-income and debt-to-income ratios, which are what lenders look at when evaluating your application.
Can I refinance my loan through Day One?
We don’t do straight refinancing deals. Our lending programs are designed for purchasing a car, not refinancing an existing loan.
What is going to happen with my old car?
It depends. If you own your old vehicle or if you have positive equity in it, you will get a fair trade-in value for your old car, which will help you get your next ride! If you are upside-down on your loan, you may be able to surrender your old car back to your lender.
If I signed a reaffirmation agreement can I still get a new loan?
Yes, you can! When you signed a reaffirmation agreement, all it meant was that you were committing yourself to continued payments on your vehicle’s loan. But you still have the freedom to sell that vehicle and get another if you can qualify for the new loan. That may be difficult if you owe more on your vehicle than it’s worth (being “underwater” or “upside-down” on the loan), but we’ve successfully helped many customers with this exact situation.
Can you refer me to a good bankruptcy attorney?
Some of the best bankruptcy attorneys refer people to us, and we would be happy to refer you to one of them. Visit our attorneys page.
FAQ

Attorneys We Recommend

If you’re considering filing for Chapter 7 Bankruptcy, be sure to contact one of these attorneys.

Here’s What Our Customers Say

New bankruptcy and starting over, and I got a really great deal. Great service. Easy to work with. Would recommend this place to anyone with a bankruptcy or bad credit.
Thank you! Stan and Mike where Awesome! Will tell everyone! When you think there’s no one that could help me, but to my surprise, they got me into a new car! This team of people that helped me will forever be part of my family.
Ramil was excellent, very accommodating and did everything he could to get me into a car that I wanted. I recently filed for bankruptcy and he was able to work with that and my budget and I am very happy with my vehicle.
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