How is car loan debt handled in a Chapter 7 Bankruptcy?

Answer by  Gus23 (11)

If you keep the car, you must reaffirm the debt or get a new loan after filing a Chapter 7 bankruptcy.

Answer by  Roland27 (16334)

You are clear and free from the debt but you don't get to keep the car. You can work it out in the papers so that you can arrange to pay off the loan in order to keep the car but most people cannot afford to do this since they are filing for bankruptcy.