Legal Question in Bankruptcy in New York

You can reaffirm an auto loan while the Chapter 7 case was open and up to 45 days after the first meeting of creditors. If you did not sign a reaffirmation agreement and get it approved by the Bankruptcy Court Judge or if the proposed reaffirmation agreement was denied by the Judge, then the lender (auto loan lender) can either repossess the vehicle and you would not be held liable for any potential debt (but the co-signor can be held liable) or you can continue to make payments on the loan (which is what you did). If you continue to make payments and the debt is being reported as discharged on your credit report and on the credit report of the co-signor, then you are entitled to continue to use the vehicle, continue to make payments and after the loan is paid off, the credit report should indicate that the loan was satisfied. However, a more secure way and less confusing method to assure that the credit report is accurate and that you can retain your automobile is to file a simple motion to re-open your Chapter 7 case and then file a reaffirmation agreement for the Judge's approval. A filing fee must be paid to re-open the case (approx. $280). Hope that helps.