Question:

I am two months behind on my car payments.  What will happen to my car during my chapter 7 bankruptcy?

Answer:

If you are behind on your car payments you are likely facing repossession of your car.  Once you file your chapter 7 bankruptcy the court will issue an order that will stop the repossession of your vehicle.

However, in a chapter 7 case you will be required to get caught up on your car payments or the bank will likely be given permission to repossess the vehicle.  If you can get caught up on your payments you can reaffirm the loan, keep the car, and continue to make the monthly payment.

Rule of Thumb: If you want to keep the car, you have to make the payments.