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I want to keep my car, but there’s a loan on it. What are my options?
If you have an outstanding loan on your automobile, it is considered a secured debt. In this case, a creditor may be able to repossess your vehicle. If you wish to retain the possession of your car, you may be able to “reaffirm” the debt. A reaffirmation of debt means that, in exchange for protection against repossession, you agree to remain liable for your debt (even if it would otherwise be discharged under a Chapter 7 bankruptcy), and promise to pay the remaining balance owed. There are timelines dictating when you are allowed to “reaffirm” a debt during the bankruptcy process. To find out more about a “reaffirmation of debt”, speak to a qualified bankruptcy attorney today.