The filing of A bankruptcy will halt (“stay”) all activity aimed at collecting money owed a creditor until the bankruptcy court can agree on either a liquidation plan or a reorganization plan.  This means that the banktruptcy petition blocks any “act to create, perfect, or enforce any lien against property of the estate”.   If a loan is taken out to purchase a car and the car is used as collateral for the loan, a bankruptcy petition  stops enforcement of the creditor’s lien  until the bankruptcy court has had a chance to examine the situation.   Several conditions might lead the bankruptcy court to lift the stay and allow the Creditor to recover the car: 1) if the debtor does not maintain insurance on the car in question, that would also be grounds to lift the stay and allow the car to be repossessed;  and 2)  if the Debtor has no equity in the property, the creditor can ask the court to lift the stay and allow the car to be repossessed. Under Chapter 13, if Debtors can show that they need the car to maintain themselves or  to get themselves or their businesses back on feet, the stay might be maintained.