home and car

If guess you're planning to file Chapter 7. In such a situation, though your other debts get discharged, you'll be able to save your house and car. If you include your mortgage and car loan in your bankruptcy filing, then make sure to reaffirm those debts. Once you reaffirm your loans, you'll become personally liable for the dues. If you keep paying those dues on time, then you'll be able to save your car and home.

You have not given enough information to properly answer your question:

1. Do you owe $$ on the car? If so, are you current? If you do not owe money on the car, how much is it worth and what is your allowed exemption?

2. Pretty much the same questions for the house.

Assuming you owe money and the items are within your allowed exemption, you can keep them if you continue to service the loans. It is not advisable to reaffirm a mortgage. The law requires you to sign a reaffirmation agreement for the vehicle however, some Judges (and even some lenders) are balking at the law so it will depend upon your Judge and the creditor involved. Signing a reaffirmation agreement basically tells the lender that "despite my bankruptcy I will pay you and, if I don't, you get to sue me".

Des.

In a Chapter 7 BK, what law "requires" you to reaffirm anything? Usually as long as you keep current with the payments the lender on an auto loan isn't going to repo. State laws will apply regarding when a lender can repo the vehicle, but just filing the bankruptcy (if the loan remains current) usually won't result in a repo. The lender may ask for a reaffirmation but the only reason they do that is so that if you do default and they repo they can then come after you for a deficiency judgment. The OP should consult his attorney regarding the laws in his particular state.

In response to:

“In a Chapter 7 BK, what law "requires" you to reaffirm anything?”

Might I suggest you review the following Code provisions as applied to personal (not real) property:

11 U.S.C. ? 521(a)(2)
11 U.S.C. ? 521(a)(6) and
11 U.S.C. ? 362(h)(1)

“Usually as long as you keep current with the payments the lender on an auto loan isn't going to repo. State laws will apply regarding when a lender can repo the vehicle, but just filing the bankruptcy (if the loan remains current) usually won't result in a repo. The lender may ask for a reaffirmation but the only reason they do that is so that if you do default and they repo they can then come after you for a deficiency judgment.”

You are living in the pre BAPCPA world. Make that argument to Ford Motor Credit and it will be laughing on the way to the auction yard.

Seriously, there are some Judges who are balking at the language of the Code but those who are, if pushed, would be reversed on appeal. The credit industry, through Congress, specifically aimed at Courts that allowed the retaining of personal property without the signing of a reaffirmation agreement when it added the above referenced provisions in October, 2005.

While there are some creditors who are not requiring reaffs the fact is that they could and, if you don’t sign, the Code provides for that creditor to take back its property unless State law precludes the enforcement of an ipso facto clause contained in the contract while payments are current. Not all States disallow the enforcement of an ipso facto clause.

As it relates to real property the “stay and pay” pre BAPCPA Case law still applies in those jurisdictions that ruled one can “retain” property without signing a reaff, hence one would never want to sign a reaff for a real property loan.

Des.