Reafirm vs Exempt Car

[Carloscda]

Just talked with Attorney and he suggested converting 13 to 7 and also either to reaffirm or exempt my car(03 Accord BBV-$6500).

What is the big difference in Reaffirmation vs Exempting? +/- of the two?

Thanks in advanced!

[lrprn]

What is the big difference in Reaffirmation vs Exempting? +/- of the two?

Reaffirming your car means to guarantee in writing that you will continue to be responsible for paying your lender what you owe on the car in full no matter what happens after you file. Most bk lawyers will not recommend reaffirmation if you owe significantly more on the car than it's actually worth.

Exempting most likely means that your lawyer hopes you can completely protect the entire value of your car under your state's auto exemption allowance when you file. This is the more preferable way to go because it allows you to protect your car and consider not reaffirming. This way if something happens to the car during your 13 (an accident that totals it, for example), you aren't responsible for paying the loan off in full plus trying to finance or buy a car to replace it simultaneously.