In most cases you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt, you will be able to keep it, if you pay its non-exempt value to your creditors in Chapter 13. However, a creditor may have a "security interest" in your home, automobile, or other personal property. If you don't make your payments on that debt, the creditor may be able to take and sell the home or the property, during, or after the bankruptcy case.
There are several ways that you can keep collateral or mortgaged property after you file bankruptcy. You can agree to keep making your payments on the debt until it is paid in full. Or you can pay the creditor the amount that the property you want to keep is worth. In some cases involving fraud or other improper conduct by the creditor, you may even be able to challenge the debt.
