Legal Question in Bankruptcy in New York

Re: Car loan

Generally speaking (and this is VERY general), the bankruptcy court looks long and hard before allowing a Chapter 7 debtor to sign reaffirmation agreements (and reaffirmation agreements are subject to court approval).

If debtor's payments remain current, many lenders do not repossess collateral securing a loan (lenders generally want money, not personal property). If debtor falls behind in payments on the collateral, though, repossession can occur very, very quickly.

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