"It is possible to keep your car during bankruptcy whether you are filing for a Chapter 13 (also known as debt consolidation) or a straight Chapter 7. A Chapter 13 will take all of your remaining debts including your car and make it one lump sum amount. The court will determine what you can reasonably pay toward those bills for the next several years and take it out when you are paid. This
. will be a reasonable arrangement and likely a lot easier on your budget than your total payments are presently and of course you will get to keep all of your stuff. With Chapter 7, it works a little bit differently. Since a Chapter 7 completely wipes out debt, anything you ask them to wipe out may have to be returned to the creditor. But, don't lose hope yet. With a Chapter 7 you can still take on 'reaffirmation' of any debt you choose. What does that mean? It means you can let all your credit card debts go, let personal loans and unsecured accounts go, but 'reaffirm' or say you want to keep your car and keep your car payment at the way it is currently. Creditors will agree to let you keep your car as long as payments are current and no harm done. For more details, you may want to contact an attorney in your state. You can also check out this website for guidance. http://www.legalhelpers.com/chapter-13-bankruptcy/chapter13.html#anc_save"
