While most folks considering bankruptcy believe they can live without credit cards, they worry that they will need a loan to replace a car at some point in the near future. The debt management/debt settlement industry has conditioned them to believe that no credit is available for eons to those who have filed bankruptcy. Hogwash.

Steve Otto has some good advice about applying for a car loan after bankruptcy. He points out that under the credit scoring system used by Fair Isaacs, your credit score improves after bankruptcy.

The most compelling evidence that credit for a car is available after bankruptcy is the fact that many debtors currently in Chapter 13 (meaning they haven’t even gotten the discharge of their debts yet) get loans to replace old cars. The auto industry can be counted on to see that you can get a loan to buy their product!