Can I keep my car if I file bankruuptcy?

There are two primary types of bankruptcy that apply to consumers. Those are Chapter 7 and Chapter 13. Chapter 7 is commonly referred to as a straight liquidation bankruptcy. Chapter 13 is commonly referred to as a repayment plan. In both Chapter 7 and Chapter 13, a debtor is allowed to keep his or her car. In Chapter 7, all a debtor needs to do is to reaffirm her debt with the car lender. Reaffirmation simply means that the debtor agrees to honor the car loan contract that was in effect before she filed. Then, both during and following the bankruptcy, the debtor must make her regular monthly payments. In a Chapter 13, again the debtor simply indicates to the court that she intends to keep her car. Again, the debtor must remain current on her monthly payments during the administration of her case. The one major exception between the two types of chapters, is that in a 13, a debtor, if she is behind on car payments, may make those up in the plan, and continue to use the car, if after filing, she remains current on her payments.