Chapter 13 allows the debtor time to reorganize and propose a plan to pay secured and unsecured creditors. if behind on a mortgage payment or car payment or both a chapter 13 may be the only choice that will preserve the collateral. Chapter 7 is often used if the debtor plans to abandon and discharge the debt on the collateral and surrender the same to the creditor. Chapter 7 also stops foreclosure and automobile repossession but is limited in what steps the debtor takes next. Creditors that feel insecure will ask the Court to return the property from the debtors possession. This creates a resolve or lose the collateral situation for the debtor. Often the creditors may ask for insurance coverage or other conditions to help secure the value of the collateral. Once a car is repossessed, it may be recovered but if is more difficult. The location of the car must be determined and release forms executed. If the house is foreclosed on, it is too late in all but the most rare cases to recover the collateral. Most debtors are not in a good financial picture at the time of filing. They are stressed from employment, choices of how to spend their income, how to pay for the necessaries of life and such. If they are supporting a family the obligations become stretched and stressed. before it become that stressful, consult with T. K. Byrne. .