The answer to this questions is……..it depends on what type of case you file. If you file a Chapter 13 with a plan to keep the car, the creditor cannot repossess it unless you let the insurance on the vehicle lapse or stop making your Chapter 13 payments. As long as you keep your Chapter 13 payments current and keep insurance on the vehicle, the creditor cannot legally take it.
In contrast to Chapter 13, if you file a Chapter 7 and you are not current on your car payments, the creditor will file a motion for relief from the automatic stay. After the motion is filed with the court, a hearing will be held roughly 30 days after the filing of the motion. If you are behind on payments, the motion will be granted and you are most likely going to lose your car. As a general rule, if you stay current on your car and sign a reaffirmation agreement you will be able to keep the vehicle.