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You may want to keep your car in bankruptcy. Most attorneys will advise against it because after discharge, you make get in to financial trouble and will not have any protection against repossession and collection efforts of your lender. In some cases, you may have to sign a reaffirmation agreement with the lender. Statement of Intention In your papers, you have to state your intention as to whether you want to surrender your car, reaffirm the debt or redeem the vehicle. By doing nothing and not stating your intention, or simply “riding through” – and continuing to pay the car after bankruptcy generally is not available as an option. You have to act on your statement of intention promptly – within 45 days. The reaffirmation agreement You must file a reaffirmation agreement and contract to pay the loan after the discharge. If you don’t pay the debt in the future, you’re still liable personally for it. You have to be up to date with payments to reaffirm. Otherwise, you’ll lose the car and still be liable on the debt. You need to be able to afford the loan. Maybe you can maybe you can’t. Your lawyer must also attest to your ability to pay. Some lawyers just won’t do this. Some lawyers are successful in negotiating a better deal for you as a condition to entering into a reaffirmation agreement. You may have to pay an extra fee for this. Discuss it with your attorney The reaffirmation hearing If your lawyer doesn’t sign off on a reaffirmation agreement, you will be called to court on a Reaffirmation Hearing. Don’t be afraid of this. The judge will ask you if you can afford to pay for the car. You’ll explain whether you need the car, whether it’s the best deal you can get and how you can afford it. If all is in order, you can reaffirm before your discharge. When to file a reaffirmation agreement A reaffirmation agreement must be signed before discharge. So doesn’t dilly dally on this point? And if you don’t sign a reaffirmation agreement, the car lender will get an order saying the automatic stay and then try to repossess your car. Laws vary from state to state but in Illinois, your bankruptcy is ground for repossession absent reaf