Can I keep my car during a Chapter 11 bankruptcy?

In New Jersey, it is possible to keep your car during a Chapter 11 bankruptcy. This is known as "reaffirming" the debt. Reaffirming the debt means that you agree to continue making payments on the vehicle, even though you have filed for bankruptcy protection. The process of reaffirming your debt involves your attorney working with your creditor to see if they are willing to accept the payments. If they accept the agreement, the judge in your bankruptcy case will review your case and determine if the agreement is fair for both sides. In most cases, judges approve the agreement, allowing you to have the ability to keep your car. Before you sign the agreement, make sure you understand the terms of the repayment plan. It is possible to keep your car and maintain ownership, but it is important to remember that you are still responsible for the payments on the car loan. If you are not able to make the payments, your creditor can repossess the vehicle. If you feel that keeping your car is important to your financial situation, you should work closely with your attorney to determine whether or not it is a viable option. Reaffirming debt during a Chapter 11 bankruptcy can be a great way to keep your vehicle, but it is important to remember that you are still liable for the payments on the loan.

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