The Bankruptcy Abuse Prevention and Consumer Protection Act was passed in 2005 to decrease the number of unnecessary bankruptcy filings. While it does make some aspects of filing for bankruptcy easier, it does weed out those individuals who would not otherwise qualify. If you currently have secured debt on your vehicle but have been unable to make your monthly payments, there is a way to protect your car from being repossessed.
Chapter 7 bankruptcy allows you to eradicate some of your debts so that you can pay off others, but on a schedule that is more suitable to your current financial situation. However, should you become delinquent once again in making your car payments, the “automatic stay” granted by a bankruptcy court will be lifted. This means that your vehicle will no longer be protected under BAPCA, and the creditor can return to claim the vehicle.