What Is a "Ride-Through" in Bankruptcy?

 Posted on February 16, 2026 in Secured Debts

When you file for bankruptcy in 2026, one of the biggest concerns most people have is what will happen to their car, boat, or other property they still owe money on. You may have heard the term "ride-through" in conversations about bankruptcy options and wondered whether that can help you.

A ride-through allows you to keep making payments on secured debt without signing a reaffirmation agreement or paying the full value of the property upfront. This option can be helpful in certain situations, but it is not always available. Plus, it comes with risks you should make sure you understand.

If you are considering bankruptcy in Texas and want to keep your vehicle or other secured property, our Kerrville bankruptcy attorney can walk you through your options.

What Is a Ride-Through in Bankruptcy?

Secured debt means the lender has a lien on specific property, such as a car, boat, RV, or furniture purchased on store credit. If you stop paying, the lender can repossess or take back that property. A "ride-through" is an informal arrangement where you continue making payments on a secured debt after filing for bankruptcy. You don’t have to reaffirm the loan or pay off the property.

Under federal bankruptcy law, specifically 11 U.S.C. Section 521, you must file a "statement of intention" within 30 days of filing your bankruptcy case. This statement tells the court and your creditors what you plan to do with each piece of secured property. You have three main options: 

• Reaffirm the debt
• "Redeem" the property by paying its current value in full
• Surrender the property to the lender

A ride-through falls into a gray area. You do not reaffirm the debt, which means you are not technically obligated to keep paying after bankruptcy. You also do not redeem the property or surrender it. Instead, you simply keep the property and continue making payments as if nothing changed. The lender does not repossess the property as long as you stay current on payments.

How Does a Ride-Through Work for Cars and Other Secured Property?

The ride-through option can apply to different types of secured property. The most common example is a car loan. If you owe money on your car and want to keep it, you can continue making your monthly payments after bankruptcy without reaffirming the loan. As long as you make the payments on time, the lender typically will not repossess the car.

Boat loans work the same way. If you have a loan on a boat and you stay current on your payments, the lender usually has no reason to take the boat back. The same principle applies to RVs, motorcycles, and other vehicles with secured loans. Furniture and electronics bought on store credit can also be subject to ride-through arrangements.

The key to a successful ride-through is staying current on payments. If you fall behind even once, the lender can repossess the property. Unlike a reaffirmation agreement, where the lender must follow certain legal procedures before repossessing, a ride-through gives the lender more flexibility to take back the property if you miss payments.

Is Ride-Through Still Allowed in Texas Bankruptcy Cases in 2026?

Whether you can use a ride-through in Texas depends on the local bankruptcy court and the lender. Many lenders will accept a ride-through arrangement as long as you keep making payments. From the lender's perspective, getting regular payments is better than repossessing and selling the property at a loss. However, some lenders refuse to work with debtors who do not reaffirm. These lenders may file a motion asking the court to force you to choose an official option.

In practice, if you file a statement of intention that says you want to keep the property and keep making payments, and the lender does not object, the ride-through can proceed. If the lender objects, the court may require you to either reaffirm the debt or surrender the property.

What Happens If You Stop Making Payments After a Bankruptcy Ride-Through?

One of the biggest risks of a ride-through is that even though you have no legal obligation to keep paying, the lender can take back unsecured property much faster.

Because you did not reaffirm the debt, your personal liability for the loan was discharged in bankruptcy. This means the lender cannot sue you for the money you owe or garnish your wages. However, the lender still has a lien on the property. If you stop making payments, the lender can repossess the car, boat, RV, or other secured item. The lender does not need to go to court or get a judgment first. As soon as you default, the lender has the right to take back the property.

After repossession, the lender will typically sell the property at auction. If the sale does not cover the full amount you owed, the lender cannot come after you for the difference. That deficiency was wiped out in your bankruptcy discharge.

This is one major advantage of a ride-through over a reaffirmation agreement. If you reaffirm the debt and then stop paying, you are still legally responsible for the deficiency after repossession.

Call a Boerne, TX Bankruptcy Attorney Today

If you want to keep your car, boat, or other secured property after filing for bankruptcy, you need an experienced lawyer who understands how these options work in Texas.

At the Law Offices of Chance M. McGhee, we offer free consultations and have over 20 years of experience helping people get through bankruptcy in a way that makes sense for them. Call the Law Offices of Chance M. McGhee at 210-342-3400 today to discuss your options with a Kerrville, TX bankruptcy lawyer.