If I file a Chapter 7, can I keep my car and reaffirm the debt for a lower payment or do I have to turn it in?

A debtor has 3 options available regarding a car loan after filing for a Chapter 7 bankruptcy: 1. Surrender your vehicle.  Once you contact your lender and "surrender" (turn it it) the vehicle, the lender will sell it.  Usually usually for less than the amount you owe; the remaining balance (the "deficiency") should be discharged in your bankruptcy. 2. Reaffirm your car loan.  Most lenders will give you the choice to reaffirm your current car loan or surrender the vehicle (although some require you to re-affirm).  This means that if you fail to make payments after your bankruptcy is closed, and the vehicle is repossessed, you can be sued for the deficiency balance.  If you re-affirm your existing loan your payments are reported and this will help you to re-establish your credit. 3. Redeem your car loan with a new lender.  Bankruptcy law permits a car owner to reduce the current car balance to the fair market value.  They then can take out a new loan for that amount.  This is called "redemption" in the bankruptcy code.  The general rule is that you must own the car for at least 910 days before filing bankruptcy to qualify for a car redemption. These are the options available to you.  You really should consult with a bankruptcy attorney in your area at this point.