Credit Card Glossary: Terms and Definitions
Keep and pay
“Keep and pay” is an informal tactic used by people who declare bankruptcy to keep selected property in their possession. If you borrowed money to buy a possession, you could use bankruptcy to nullify the loan, but you’d risk losing the possession. With keep and pay, you avoid the court and do not formally reaffirm the debt. You simply keep the possession and pay the loan as originally agreed.