The driving force behind most personal bankruptcy cases is unsecured debt like credit cards, medical bills, personal loans, etc. Some express concern as to what will happen to their secured loans such as their mortgage or loan on their car in a bankruptcy case. The good news is that in most bankruptcy cases you can eliminate your credit card debt and still keep your house and your car.
You have to keep paying your car loan and your monthly mortgage payment. I know this may seem obvious to some, but I need to be clear on this – if you want to keep your house or car in bankruptcy you will be required to keep making that monthly payment. I have had clients misunderstand this and believe that they get a free house because they believed that the mortgage was discharged along with the credit card debt in bankruptcy.
If you want to keep it, you need to keep making the payments.