car

[bkstuff]

If someone files a chapter 13, does the debtor have the choice to keep a car that they still owe money on and reaffirm? It seems somewhere I read that the credit union can choose to just repo the car instead of reaffirming.

Does it matter if the debtor is current with that loan?

[ccfriend]

I don't think you can reaffirm stuff in a chapter 13. I have an auto loan and it is paid outside of the BK

[Nanzee]

Both of my car loans are being paid outside of the bankruptcy, but I have not been confirmed yet.

[lrprn]

If someone files a chapter 13, does the debtor have the choice to keep a car that they still owe money on and reaffirm? It seems somewhere I read that the credit union can choose to just repo the car instead of reaffirming.

Because of the nature of Ch 13, many bk lawyers feel it is not necessary to reaffirm any asset after filing. A credit union cannot repossess a car under the protection of the bk court's automatic stay. And after five years, what credit union in their right mind would want to repossess a car that old?

Does it matter if the debtor is current with that loan?

If you are in arrears on your car payments when you file and wish to keep the car, then the arrears are rolled into your plan. You don't have to be current on payments to keep assets in Ch 13.

However, you do need to think long and hard about whether it makes long-term financial sense to struggle to keep assets that are far underwater and will not recover their value for a long time, if ever.

[bkstuff]

lrprn, thank you for your response.
We are still doing everything we can to avoid filing a CH13. Even thinking ahead 5 years is scary - we have 2 cars (1999 is paid for and the 2002 we are still paying on). But in 5 years they will be REALLY old! Yikes.

So many things to consider.