It is common for people to file for bankruptcy to stop a foreclosure or repossession of vehicles or equipment. Filing for bankruptcy triggers an automatic stay, requiring creditors to stop their collection efforts - including attempts to foreclose on or repossess property. Whether the bankruptcy fully stops foreclosure or repossession, or just delays these events, depends on the chapter of bankruptcy you file.
Filing Chapter 7 bankruptcy allows you to delay a foreclosure sale for 3-4 months. It can buy you time to negotiate with a lender to modify the change the loan period or loan terms of the mortgage. However, a lender may move to lift the stay. Filing for Chapter 13 can not only stop the sale, but also allow you to propose a debt repayment plan that will cover arrearages as well as mortgage payments that come due during bankruptcy. As long as the plan is approved and you make timely payments on this plan over the 3-5 years of bankruptcy, you can avoid foreclosure altogether. Moreover, you may be able to strip any junior mortgages that are not secured from your home.
While a Chapter 7 automatic stay stops a lender from repossessing your car, the lender can and probably will ask the court to lift the stay, unless you show that you are going to catch up on car payments or cure a default. The lender will need to show the court that its interests are inadequately protected because you have failed to make timely payments on the loan or you are in default. In most cases, if you cannot afford to catch up on car payments or cure your default, the court will lift the stay and will not stop a lender from repossessing your vehicle.
However, you should be able to stop a repossession altogether if you adequately address arrearages and upcoming car loan payments in your Chapter 13 debt repayment plan. To keep your vehicle, you will also need to make adequate protection payments from the date your file for bankruptcy until the date the judge approves the plan.