Banks that hold your mortgages and car loans are known as secured creditors.  The amount owed to them is called a secured claim.  Most people who file for bankruptcy have a secured loan.  In the State of Connecticut, if you have a secured loan and you are up to date on your payments, the creditor will not be able to repossess it during the bankruptcy and even thereafter if you continue to pay on time.  By paying on time you get to keep your car or house even though you have filed for bankruptcy.  On the other hand, if you are behind on your payments, either during or after the filing, the creditor can repossess the property, just like in a case where you never filed. But since this secured debt was listed on the bankruptcy filing, the underlying debt is discharged, allowing the creditor to repossess the property by not sue you for the money owed.  The upshot of all this is that you can keep all your secured property even if you file bankruptcy if you keep your payments up, but if you want to dump the property and stop paying, they can take it back but can’t sue you on the loan.  If you have any questions on this aspect of bankruptcy, please feel free to call Attorney Mark O. Grater at 860-449-8059 located in Groton, New London County, Connecticut.