If you sign a reaffirmation agreement on your automobile and it is later repossessed, your creditor can hold you responsible for any deficiency. This also means that if your car was ever stolen or wrecked, you would continue to owe your creditor. However, if you do not sign and file a reaffirmation agreement for your vehicle, your creditor may repossess it, even if you are current on your payments.

You may attempt to keep your vehicle without filing a reaffirmation agreement. If you choose this option, you must make your payments on time each month. You should know that your creditor may repossess your vehicle at anytime and any payments made will not be refunded in the case of repossession. If you do not sign a reaffirmation agreement on your automobile, you can simply surrender the car to the creditor without any continuing liability.