Can you keep your vehicle without reaffirming its loan? Can you make the payments without reaffirming? What if you can't afford the payments?
You can usually keep collateral you need to keep by entering into a "reaffirmation agreement" with the creditor during your Chapter 7 case.
If your vehicle is worth less than its debt, and you can get the money representing that value, you can "redeem" the vehicle free and clear.
If your vehicle is worth less than you owe on it, with good timing cramdown could reduce your monthly payment AND the total amount you pay.
In a Chapter 7 case you "reaffirm" your vehicle loan if you want to keep your vehicle. This means you keep paying it.
Getting out of a vehicle lease by "rejecting" it in Chapter 13 isn't quite as quick as in Chapter 7 but has about the same practical effect.
Vehicle leases are often not such a good deal. If you find out your isn't, you can almost certainly "reject" that lease and pay no more.
Although Chapter 7 can work fine if you're current on your lease, use Chapter 13 instead if you're behind and need time to catch up.
You can most likely "assume" your vehicle lease and keep that vehicle under Chapter 7. But you need to be current or able to be quickly.
If you want secured creditors to be paid in your Chapter 13 plan, they must file proofs of claim. Let's use the example of a vehicle loan.
Chapter 13 gives you powerful ways to hold onto a vehicle, but it also lets you give up that vehicle without paying its debt.
If you are filing a Chapter 13 case for other reasons, it's also a good opportunity to get rid of your vehicle lease if you want to do so.
Want to keep your leased vehicle but aren't current on the payments? File a Chapter 13 case if you can't get current right away.
If current or able to get current on your vehicle lease payments, you'll likely be able to keep that vehicle in a Chapter 7 case.
Bankruptcy can save your truck or vehicle various ways. Enable you to pay for it by wiping out other debts. Or even by paying less for it.