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Many individuals file for bankruptcy due to an inability to repay their debts. However, some debts, like car loans, can be managed during this process. Filing for bankruptcy doesn't automatically mean losing a car; if you want to keep it, you must continue making payments. In Chapter 13 bankruptcy, debts are reorganized with a repayment plan that can include provisions for keeping your car. Conversely, Chapter 7 bankruptcy involves liquidating assets to handle debts, which often doesn't impact most people’s equity. Additionally, reaffirmation agreements are a key concept in the bankruptcy process, especially in Chapter 7 bankruptcy.
