Usually the answer is yes. Many of our clients have fallen behind in their car payments, and a bankruptcy can help reallocate funds from credit cards and personal loans to automobile loans. Depending on the circumstances, you may be able to refinance your car through the bankruptcy. Chapter 7 bankruptcy clients are able to redeem their secured personal property for fair market value at the time of filing. This means that you can choose to pay the secured creditor the fair market value in exchange for a release of its security interest. Some companies will finance this redemption for you. Many of our Chapter 13 bankruptcy clients find that they owe more on their vehicle than it is worth. They are able to cram down what they are paying to the fair market value of the vehicle. They can also extend the payments over the life of the Chapter 13 bankruptcy plan.