I filed chapter 7 and thought I had reafirrmed my vehicle.

Some auto lenders permit debtors who file for bankruptcy without signing a reaffirmation agreement to keep their vehicles so long as they remain current on the payments. This is known in Bankruptcy as a "ride thru." However, if you fall behind on the payments, the creditor will almost certainly repossess the vehicle. Recall that the vast majority of auto loans are secured by the property. It is important to note that since the Bankruptcy Reform Act in 2005 some auto lenders (especially Ford and Chrysler) have been repossessing vehicles where debtors did not sign a reaffirmation agreement even when they remained *current* in their payments. This area of the law is somewhat unsettled and the weight of decisions seems to be favorable to the lenders.

As was stated in the previous answer some lenders will repossess your vehicle even if you are current on your payments if you didn't reaffirm. These lenders point to a clause in your security agreement that says that you are in default if you declare bankruptcy even if you are current. Why a lender would do this is beyond me. It hasn't happened to any of my clients, but I have heard from other attorneys that it does happen. If I were you I would contact the lender and ask them if they will repossess your vehicle even though you are current. Then confirm your understanding in writing. If the lender refuses to promise not to repossess then, I suppose, you could consider reopening the bankruptcy case and reaffirming.

I agree with my colleagues that "ride through" or "pay and retain" was once a viable option. However, there is a recent Ninth Circuit case holding that ride through is no longer an option after the 2005 amendments to the bankruptcy code. Please see an article on this topic at: http://www.thegorskifirm.com/Articles/Pay%20and%20Retain.pdf