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Filing for bankruptcy protection under either chapter 13 or Chapter 7 will stop your lender from repossessing your motor vehicle. Even more importantly, if your motor vehicle has already been repossessed, but not yet sold at auction, filing for protection under chapter 13 will stop the sale of your motor vehicle, and force the lender to return your vehicle to you. Chapter 13 can also be used to reduce the interest rate on your vehicle loan and reduce your monthly payments as well.

Car reposession protection after bankruptcy
Luxury Car Headlight - Bankruptcy Repossession

Redeem Your Motor Vehicle for What It’s Worth under Chapter 7

Chapter 7 bankruptcy allows you keep your vehicle but only have to pay what the vehicle is worth not the full amount you owe under the loan.  The process for accomplishing this is known as redemption.  Redeeming your vehicle could save you thousands of dollars on both principal and interest.