Many people hope that they need not include their car in bankruptcy, especially if they are not behind in their payments. But is a person still required to list their car on the bankruptcy filing regardless?<\/p>\n
Under bankruptcy law, all assets, debts and obligations are to be listed on the petition and schedules.\u00a0<\/p>\n
Thus, a person should list the automobile as an asset, list any debt owed on the vehicle as either a secured claim (most likely the case) or an unsecured debt. It is then up to the bankruptcy court to determine the disposition of that asset.<\/p>\n
A good strategy for a vehicle that is up-to-date in payments is to work with the creditor directly: contact the creditor and indicate that you wish to enter into a reaffirmation agreement and request that the creditor prepare the document. Making such a request will shift the burden to the creditor (who would much prefer that you keep making payments to them), who will most likely be able to produce the document quickly and at no cost to you. Once the vehicle creditor supplies the document you request, you will need to review the document and provide any information in the agreement that is specific to your situation.<\/p>\n