Can you keep your vehicle without reaffirming its loan? Can you make the payments without reaffirming? What if you can't afford the payments?
Chapter 7 gets you out of a vehicle lease owing nothing. Chapter 13 is more complicated but can give you pretty much the same good result.
Reaffirming a debt, including a vehicle loan, can be a very sensible choice. But be fully aware of the risks and possible other options.
Filing a Chapter 7 case stops repossession of your vehicle temporarily. If you are getting another vehicle, that can be valuable time.
Chapter 7 buys you the crucial time you need in many situations when falling behind in your obligations related to your vehicle or your home.
Chapter 13 vehicle loan cramdown solves a number of serious practical problems that even Chapter 7 "straight bankruptcy" can't.
If you're buying a vehicle, sometimes getting out of the contract is your best option. Chapter 7 lets you do that, owing nothing.
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.
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.
Chapter 13 gives you powerful ways to hold onto a vehicle, but it also lets you give up that vehicle without paying its debt.
A secured debt effectively turns into an unsecured debt if you surrender the collateral, which may make sense to do more than you think.
A vehicle lease can cost you less up-front and each month, but is in reality very expensive. Bankruptcy is your way to break the contract.
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.