Will bankruptcy permit me to keep my car I am paying for?

Yes. A vehicle loan is considered a secured debt on which a payment must be made to retain the vehicle—whether the regular payments in a Chapter 7 or as part of a Chapter 13 Plan. In bankruptcy you normally cannot eliminate a loan against a vehicle or other collateral while at the same time retaining it. In Chapter 13, however, it is often possible to lower the balance on a vehicle loan provided it is a purchase loan at least 2-1/2 years old or a refinance loan.