Expert: Terry Leeders - 8/5/2007

Question
i have a auto loan that is 4 mos old. is it possible to file chapter 7 and include vehicle? (without forfeiting vehicle)

Answer
With secured debt, you can surrender the asset (here, the car) and eliminate the debt, or you can just keep paying on the loan terms and sign an agreement (called a reaffirmation agreement) staying responsible for the debt, or, you have the option to redeem (buy the car for a lump sum) here, since it is fairly recent purchase, the redemption amount would most likely be what you owe...so probably not worth it.  Unfortunately, you cannot eliminate the debt while keeping the car.