*Loan,banking and credit>>>auto loan

Should I reaffirm my auto loan when filing Chptr 7 Bankruptcy?

We filed Chapter 7 bankruptcy in November 2006. We would like to keep our car but they want us to pay almost $2000 that is past due. I'm not sure what our options are...do we have to reaffirm? Can we sell it? We have received tons of offers from companies that say they will finance us even w/ an open bankruptcy - is that a good option, should we let our current car go in the bankruptcy and get a new one? Any help/advice is greatly appreciated.

Short answer - if you want to keep your car, you have to reaffirm the loan. Which sounds like you need the $2,000 the loan company is asking for.

You can't sell the car. There is a lien on it by the loanholder, so legally you can't sell it until the lien is released (which won't be done until the loan is paid off).

You could try one of the financing offers you have received, but read ALL of the fine print especially the stated interest rate and any hidden fees.

If you don't have the money to pay the past due amount, you may have to let the car go as part of the bankruptcy and then try to get another car. You most likely won't be able to obtain financing for a new vehicle, but you could find something cheap to get you around until you save up enough to purchase something better.