A creditor is secured, if you have pledged property, such as your home, car, or even furniture as collateral. , If the secured claim is not paid or the loan has not been reaffirmed, the bankruptcy court allows the creditor to repossess the property that was pledged as collateral.
If you recently purchased a home or a car, you can choose to reaffirm your loan obligation. You can reaffirm your loan by signing an agreement that means you wish to keep the loan in spite of your bankruptcy petition. This allows you to keep your home or car as long as you keep current with your monthly payments. You may also be able to keep certain credit cards, if the company agrees to reaffirm your account.