Q: I own a truck that’s paid off and has a value of $1,200 and I also have a loan on a Car that has negative equity.
I’m filing chapter 7 with no assets other than my truck. Will they let me reaffirm my Car Loan with negative equity, and keep my truck? Or will I have to give up my truck in order to keep my Car loan?
A: You can use your exemptions to protect and keep the truck while reaffirming on the car debt (if you think that is wise). You can keep both.
A: Your question is confusing and I need a lot more information in order to fully answer your question (plus, I am sure you have a hundred, plus more). If you have a vehicle with a loan and want to keep the vehicle, then continue to pay for it. Make sure to look at the applicable exemption allowance.
There is a Self-Help Center at the Arizona Bankruptcy Court. I highly recommend you meet with one of their volunteer attorneys.
My best, Diane L. Drain
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