How Do I Reaffirm My Car Loan? – Upsolve

Reaffirming your car loan is a 7 step process:

First, you have to tell the Bankruptcy Court that you want to reaffirm the debt. You do that by selecting the “reaffirmation” box for your debt on Official Form 108 (Statement of Intention). Upsolve's free web app will help you prepare this form.
After filing your bankruptcy forms, you must mail the Statement of Intention form to your car lender. You should also call your lender and speak with the bankruptcy department. Ask them to send you a reaffirmation agreement.
Receive, review, complete and sign the reaffirmation agreement, then send it back to the lender. You must sign and deliver your reaffirmation agreement to the lender within 45 days after your Meeting of Creditors. If you don't, the lender will be able to repossess the vehicle even without first filing a request to do so with the bankruptcy court or giving you any prior notice.
The lender will then file the signed reaffirmation agreement with the court.
If you don't have a lawyer, or your lawyer hasn't certified the reaffirmation agreement, the bankruptcy court will hold a brief hearing to make sure that reaffirming is in your best interest. You will need to attend.
The court either approves your reaffirmation agreement, or not. Typically, either way, as long as you're current with payments and the vehicle is insured, you'll be able to keep the vehicle anyway, as long as you stay current.
If the judge approves your reaffirmation, you will get a notice of reaffirmation along with your discharge. And you will be able to keep the property as long as you stay current on your payments.

If you don't reaffirm the debt, then the car can legally be repossessed after the 45 days end even during bankruptcy (although there may be some state law protections in your state). Although many lenders do not actually require reaffirmation agreements, some lenders, like Ford Motor Credit, definitely do and will repossess the car absent a reaffirmation. Either way, you must understand that reaffirming the debt reinstates your personal liability for that debt. That means if you fall behind on your car payments after filing for bankruptcy, the lender can, and probably will, repossess the car. And after the repossession, the lender could sue you and get a judgment against you, hindering your ability to get a fresh financial start after bankruptcy.

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