Chapter 13

• Under Chapter 13 bankruptcy you keep all of your property and all your debts, albeit under a new debt payment plan.
  
  

Chapter 7

• Under Chapter 7 you will have to sell all of your non-exempt property. Unfortunately, because each state has its own set of unique exemption laws, it is impossible to tell you whether you can keep your car.
  
  

Generally

• You can keep your car if the total value of your car is less than your state's exemption amount. State exemption laws for cars generally range from $2,000 to $5,000. So if your car is worth only $2,000 then you are probably in luck. If your car is worth more than the exemption amount, then the bankruptcy trustee will sell it and give you cash equal to the exemption amount.
  
  

Wild Card

• Many states also have a wild card exemption which allows you to decide what property you want to keep. Some state laws, for example, give you $20,000 to choose what property it will exempt. So if your car is worth $15,000 then you can keep it if you use the wild card exemption to protect your car.
  
  

Financing

• The rules are different if you owe money on a loan secured by your car. In this case, you will only be able to keep your car if you remain current on the monthly payments. The bankruptcy will not discharge the lender's lien on your car, so if you fall behind on payments the lender can repossess.