Last updated September 18, 2026
Short answer
Chapter 7 does not rewrite a car loan over five years. You generally reaffirm, redeem in a lump sum, surrender, or in some districts keep paying without a reaffirmation (with lien risk). Missed payments lead to stay relief and repo.
See reaffirmation and § 722 redemption. Statement of intention is required for secured consumer debts. A car with non-exempt equity can interest the trustee even if the lender is happy.
How Brock & Stout can help
We compare equity, payoff, and replacement value; explain each option; and prepare reaffirmation or redemption papers when that is the chosen path. We do not guarantee a lender will sign a reaffirmation.
Frequently asked questions
Some districts and lenders still allow keeping a car by staying current without reaffirming. If you later miss a payment, you have no personal discharge protection on that contract and the lien remains. Ask local counsel.
Related resources
- Can I Keep My Car If I File Bankruptcy? — Can I Keep My Car If I File Bankruptcy?
Keeping a car usually requires two things: exemption protection for your equity, and a strategy for the lender. Chapter 7 options include stay-and-pay, reaffirmation, redemption, or surrender. Chapter 13 can catch up a car loan and, in some cases, reduce the secured claim.
- Car Loans in Chapter 13 Bankruptcy — Car Loans in Chapter 13 Bankruptcy
Chapter 13 can stop a repo and pay a car loan through the plan. If the loan is a purchase-money security interest incurred within 910 days of filing, [§ 1325(a)](https://www.law.cornell.edu/uscode/text/11/1325)’s hanging paragraph generally blocks cramdown. Older or non-PMSI loans may be crammed down to value.
- Reaffirmation Agreements in Bankruptcy — Reaffirmation Agreements in Bankruptcy
A reaffirmation is a new contract, filed with the court, to remain personally liable after discharge. It is common on car loans in Chapter 7. It is voluntary. Presumption of undue hardship and [§ 524(c)–(k)](https://www.law.cornell.edu/uscode/text/11/524) disclosures apply. You can usually surrender instead.
Facing an urgent debt problem?
Talk with a bankruptcy attorney about garnishment, foreclosure, repossession, or a lawsuit. A consultation can explain options. It does not guarantee a particular result.
This page is general educational information about bankruptcy as of the date shown. It is not legal advice, does not create an attorney-client relationship, and does not guarantee results. Outcomes depend on individual facts and current federal and state law. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
