What happens to my tools from Snap-On Credit when I file bankruptcy?

You lose them unless you keep paying for them.  

When we file a chapter 7 bankruptcy, you list secured items (like your home or car or tools) and then list the secured creditor.  If you want to keep the collateral, like the tools, then you check a box that says “reaffirm,” you keep making payments, and sign a reaffirmation agreement.  If you want to surrender the collateral, then you stop paying and turn it in.  http://robertspaynelaw.com/myutahbankruptcyblog/2014/03/27/do-i-have-to-reaffirm-my-car-loan-to-keep-my-car/

On the other hand, if you want to surrender the tools, then stop paying on them and eventually Snap-On (Snap-On Credit or Snap-On Financing) will contact you to pick them up.  Unlike the picture, they are rather friendly and easy to work with.

In a chapter 13, it’s a little different.  You make one monthly payment to the chapter 13 trustee to cover secured payments like car loans (and tools loans).  So stop making the payment directly and talk to your attorney about your chapter 13 repayment plan.

Now to make it  more complicated, let’s say that you have almost paid off the loan and have some tools with real value.  Then we get to apply exemptions (protections) if we can.  If you use the tools for work or for your business, then we can exempt them as “tools of the trade.”  http://robertspaynelaw.com/myutahbankruptcyblog/2014/01/25/will-i-lose-my-equipment-for-my-landscaping-business-if-i-file-for-bankruptcy/

So if you use it for work or business, I can protect it, up to $5,000 of value above and beyond the loan amount.  If you don’t use it for your work or business, then I cannot protect its value, and you may end up losing it anyways.