You should do it before. If you buy a car before and the creditor does not make you sign an agreement saying that you owe the money despite filing bankruptcy, if you default, they cannot go after you because it was included in the bankruptcy. Plus, your credit score will be higher without the bankruptcy.

I disagree with Jeff. Whether you should buy a car before or after you file for Bankruptcy depends on your particular circumstances.

If your credit is already bad, any financing will be at a very high rate before you file Bankruptcy. If you buy the car before the bankruptcy, the lender will not usually report the payments to the credit bureau to help you re-establish your credit. Many vehicle finance companies will also insist that you sign a "reaffirmation agreement" as a condition of keeping the car.

Although filing Bankruptcy initially damages your credit, many lenders will offer second chance financing at a better interest rate after you file a Bankruptcy. I help my clients rebuild their credit after the bankruptcy is over with information on how to increase their credit score.

If you purchase the car after the bankruptcy is over, making the payments on time will also help you to rebuild your credit and increase your credit score

In some instances, I do recommend buying the car before filing, particularly for higher income clients who need additional deductions to qualify to file Bankruptcy. But each case needs to be examined based on the specific circumstances of the client. This is a question you should discuss with the attorney you hire to represent you.