If your car is about to be repossessed, or if you fall 2 payments behind on your auto then it is past time to consider filing Chapter 13 bankruptcy. Not only will the Chapter 13 save your car from repossession, it probably will lower the monthly payments on the car.
When the Chapter 13 bankruptcy is filed, the Automatic Stay provision of the Bankruptcy Code will prevent the creditor from repossessing the vehicle.
Although most people think that they only can discharge their unsecured debt through a Chapter 7 bankruptcy, the overwhelming majority of our clients also discharge their credit card debt through a Chapter 13 as well.
By discharging your credit card debt and medical bills, and probably reducing your monthly payment on your vehicle, you will greatly relieve yourself financially by filing a Chapter 13.