Can the debtor keep certain secured property such as their car?

If a debtor would like to keep certain property, such as a car, they may "reaffirm" their debt.  A reaffirmation is an agreement between the debtor and the creditor indicating that the debtor is liable and will pay all or a portion of the money owed, even though the debt would otherwise be discharged in the case.  In return, the creditor promises to not repossess or take back the car or other property as long as the debtor continues to make payments.  Reaffirmation of a debt must be done before the discharge is entered in the case.  The reaffirmation agreement must be signed and filed with the court and the judge will decide if the reaffirmation agreement is approved.  The court must find that the reaffirmation does not impose undue hardship on the debtor and that it is in the debtor's best interest.  Reaffirmation agreements are voluntary.  If the debtor agrees to reaffirm a debt and fails to make the payment required, the creditor can take action against the debtor to recover any property and the debtor may remain personally liable for any remaining debt that they have reaffirmed.

Click link for Reaffirmation Agreement (Form B240A)

E:FILING GUIDANCE: Use the Approval of Reaffirmation Agreement event located in the Motion/Application category.  Click here for docketing instructions.