MEMORANDUM DECISION
This matter is before the court on a motion to lift stay filed by Chrysler Credit Corporation. Debtor’s counsel filed written opposition to the motion arguing that Chryslеr Credit is adequately protected because the debtor has remained current on his payments. Although debtor’s counsel did not appear at the hearing on Chrysler Credit’s motion, the debtor did appear and represented that he wished to reaffirm the debt. Chrysler Credit indicated a willingness to negotiate a reaffirmation agreement. Debtor’s counsel, in his written opposition, indicated that reaffirmation is not in the debtor’s best interest.
JURISDICTION
This court has jurisdiction of this matter pursuant to 28 U.S.C. § 1334. Pursuant to 28 U.S.C. § 157(b)(3), the court finds that this is a core proceeding as defined in 28 U.S.C. § 157(b)(2)(G) and (0). Accordingly, the court shall enter its order pursuаnt to 28 U.S.C. § 157(b)(1).
*565 DISCUSSION
The debtor entered into a standard retail installment contract to purchase a used automobile on October 12, 1985. The contract contains a clause expressly providing that in the event of bankruptcy, the secured creditor may accelerate the remaining unpaid bаlance and exercise any of its remedies for default including repossession. The court assumes that this type of clause is typical of most, if nоt all, such contracts.
At the time Chrysler Credit filed its motion for relief from the automatic stay, it was owed Seven Thousand Four Hundred Thirteen and 25/100 Dollars ($7,413.25). It is undisputed thаt the debtor has been current on his installment payments and was not in default prior to filing his bankruptcy petition. According to the Kelly Blue Book, the collateral, a 1984 Dodge Dayto-na, has a fair market value range of between Four Thousand Five Hundred Twenty-Five Dollars ($4,525.00) and Six Thousand One Hundred Dollars ($6,100.00). Based on these figures, the debtor has been advised by counsel that reaffirmation would not be in his best interest and might impose a substantial hardship because, аfter reaffirmation, a subsequent default by the debtor could result in a substantial deficiency claim. 1 Debtor’s counsel believes that since the debtor is сurrent in his payments, Chrysler Credit is adequately protected, and concludes that the debtor should, therefore, be allowed to retain Chrysler Credit’s collateral after his discharge without reaffirming the debt. As a result, the debtor avoids a possible deficiency claim in the future.
Prior to its decision in
In re Morrow,
Allowing a debtor, who has been able to keep installment payments current, to retain a secured creditor’s collateral after .disсharge and the termination of the automatic stay is generally based on the conclusion that current monthly payments adequately proteсt the secured creditor.
Sparago,
*566
Here, the retail installment contract executed by the debtor contains a standard clause expressly providing that, in the event of bankruptcy, the secured creditor may accelerate the remaining unpaid balance and exercise any of its remedies for default including repossession. Such a clause is clearly ineffective to prevent the property from becoming property of the estatе. 11 U.S.C. § 541(c)(1)(B). However, when the asset is no longer part of the bankruptcy estate, the clause becomes operative and enforceаble.
In re Schweitzer,
Applying the foregoing to the case at bar, the Court notes that the contrаct provision which accelerated the debt upon the filing of the petition in reality did no more, at least in regard to the outstanding principal, than what the Code does automatically. In other words, inasmuch as ‘bankruptcy operates as the acceleration of the principal amount of all claims against the debtor,’ House Report at 353, U.S.Code Cong. & Ad.News at 6309, one can hardly brand the clause as against public policy.
Furthermore, when one balances the secured creditor’s loss of the debtor’s personal liability on the obligation and the depreciаting value of the lien against the reality that enforcing the provision will not necessarily deprive the debtor of his vehicle, the remedies of redеmption and reaffirmation being available, the scales are tipped toward enforcement.
The debtor obtains, by virtue of the Bankruptcy filing, а discharge of personal liability on secured retail installment contracts. While the secured creditor’s security interest in the collateral remains, the debtor no longer remains personally liable for the unpaid purchase price. The secured creditor, in turn, is entitled to the right for which it bargained, which is to reclaim the automobile when it has lost the debtor’s personal liability on the obligation. The right of repossession is not one which shоuld be lightly denied in view of the depreciating value of collateral and the possibility of its total destruction or disappearance.
Sparago,
CONCLUSION
Since the debtor has remained current on his payments to Chrysler Credit and has expressed an interest in reaffirming the debt, Chrysler Credit’s motion to lift stay is denied. The debtor shall be given 20 days from the entry of this order to negotiate a reaffirmation agreement, should he choose to do so. If the debtor has not filed а reaffirmation agreement within such time, the automatic stay shall terminate.
Notes
. Since debtor’s counsel presumably can not make the declaration or affidavit required by 11 U.S.C. § 524(c)(3)(B), a reaffirmation agreement negotiated while debtor was represented by counsel should not be approvеd. Should the debtor wish to negotiate an agreement against the advice of his counsel he may do so, however, the debtor must be prepared to persuade the court, at a reaffirmation hearing, that the agreement satisfies the requirements of 11 U.S. C. § 524(c)(6)(A).