Reaffirming your auto loan?
By entering into a reaffirmation agreement for your automobile you are promising to pay the loan even after your bankruptcy discharges. This means you are giving up the protection of the bankruptcy court. If something happens to you after your bankruptcy and you cannot pay your car loan, the lender will garnish your wages.
Are you required to reaffirm?
Can I continue paying on a loan that I carried through my bankruptcy without reaffirming the loan?
Yes. The lender wants you to reaffirm your loan because it means they can collect even after the discharge. However most lenders will let you keep your vehicle even if you decide not to reaffirm the loan, remember they just want the payments. Also keep in mind that when you file bankruptcy you lose the right to have the payments you make report to the 3 major credit bureaus. This means you ARE NOT reestablishing your credit!