I have been making my car payments, if I file for bankrupcy could I keep my car?

Asked over 1 year ago - Fresno, CA

I have read something about a reaffirmation.... what is that?

Attorney answers (3)

  1. Michael Raymond Daymude


    Contributor Level 20


    Lawyers agree

    Answered . Probably yes. Most individuals who file BK continue to keep their cars. A reaffirmation agreement is simply an agreement with the creditor that says, despite your BK, you agree to remain liable on the obligation.

    When you file for BK you have 3 options with respect to your vehicle. You can redeem it, reaffirm the obligation, or surrender it. The best way for you to handle your auto debt depends on a number of factors.

    If you are considering BK to resolve current financial difficulties, you should seek the advice and counsel of a BK attorney in your area so you can decide on a plan that will work for you going forward.

    Good luck.

    I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for... more
  2. Deborah F Bowinski

    Contributor Level 16


    Lawyers agree

    Answered . I agree with Mr. Daymude buy I would add a possible fourth option. Depending upon who your lender is it may be possible to just retain the car and pay the loan without actually signing a reaffirmation agreement.

    You should consult with and retain an experienced bankruptcy attorney to assist you with your filing.

  3. Dorothy G Bunce


    Contributor Level 20


    Lawyer agrees

    Answered . There is the issue of can you keep your car and then there is the issue of should you keep your car. If you sign a reaffirmation, you are agreeing to pay for the car as if you hadn't filed bankruptcy & this can be a big risk if the car deteriorates in some way - and they often do.

    It may be hard to believe, but once your bankruptcy ends, you will be approached by many lenders to purchase a vehicle. Some of these offers will be good, some will be poor.

    It is your decision to make. Hope this perspective helps!

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.


Ask now

26,111 answers this week

2,897 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

26,111 answers this week

2,897 attorneys answering

Legal Dictionary

Don't speak legalese? We define thousands of terms in plain English.

Browse our legal dictionary