You just filed a Chapter 7 Bankruptcy to get a fresh start and now your car lender is asking you to reaffirm the loan. By reaffirming the loan, you will now still owe the remaining balance.
If the car ever breaks down, the lender will be able to force you to pay it off. If you ever fail to make payments, the car lender will be able to sue you after they repossess it. So much for the fresh start.
If you don’t reaffirm your car loan and you are not current on your loan, you run the risk of repossession after your bankruptcy case is discharged, but the lender will never be able to sue you or collect payments from you after they take the car back.
Chances are your car is worth a good bit less than what you owe on it. If you are underwater on your car and you end up reaffirming a car in bankruptcy for more than it’s worth, you have likely made the worst car deal of your life.