Do I have to reaffirm my car loan to keep my car?

  • If you want to keep it, probably yes.

    Prior to the BAPCA (the bankruptcy law changes in October of 2005), you could “drive through” or “ride through” the bankruptcy with your car and keep the vehicle, so long as you kept making payments to your secured creditor.

    Now, you are required to reaffirm your debt (reaffirming the debt means that you sign an agreement that you will still be liable for the loan even after the bankruptcy discharge.  The bankruptcy court has a standard reaffirmation agreement form here.

    Some creditors don’t officially make you reaffirm the debt, and you can keep making the payments and keep the car, but most require it.  Even if you are current on the payments, they will demand return of the vehicle and/or repossession if there is no reaffirmation agreement on file with the court.

    So yes, you probably do need to reaffirm if you want to keep the car.

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