If your car has been repossessed, and you want to retain it, it is not necessarily too late in Chapter 13 bankruptcy. However, you won't want to wait too long to file, as you can only recover the vehicle if it has not been auctioned off.
When your car is repossessed, you can file a Chapter 13 bankruptcy to catch up all the arrears on the vehicle. The arrears will be paid at 0% interest, which will make the repayment significantly easier. However, you will be required to pay any fees and costs related to the repossession. The finance company will be compelled to return the vehicle to you if you file in time. As mentioned above, you won't want to wait too long, as the vehicle will be lost if it is actually auctioned before filing. Chapter 13 bankruptcy is a great way to keep the vehicle in these situations.
A repossessed vehicle cannot be retained in Chapter 7 bankruptcy, unless you can pay all of the arrears on the vehicle at the time of filing. Chapter 7 bankruptcy works differently than Chapter 13 bankruptcy... while it has many advantages, the ability to catch up on arrears on a vehicle is not one. In most Chapter 7 bankruptcies where a vehicle has been repossessed, it is surrendered though the bankruptcy, with the debtor's obligation and liability being wiped out. If you can't afford to retain the vehicle (or don't want to) Chapter 7 bankruptcy is the way to go.
Contact us to set up a free consultation to determine if it feasible to file a Chapter 13 bankruptcy to save you repossessed vehicle (or whether it is best to walk away in a Chapter 7 bankruptcy). I have helped numerous clients in this situation, and I will be more than happy to discuss it with you.