Legal Question in Bankruptcy in California

Re: Pay off a car with a Bankruptcy

Yes. In Chapter 7 bankruptcy, there are three options regarding a car loan (though the form only suggests two). They are reaffirm the debt, return the car, or simply continue to pay. The only thing to be concerned about is if you can't make a payment for one reason or another, the lender might be a bit more reluctant to work with you to stretch out payments if you didn't reaffirm. Typically, though, the lenders are happy to be getting the money rather than having to repossess a car and reselling it for a loss.