Typically, when a bankruptcy case is filed, an automatic stay goes into effect immediately. The automatic stay freezes all collection action, including automobile repossession. Depending on the value of the automobile, the equity in the car, the amount owed and other factors, various solutions may be available. Some possibilities include surrendering the vehicle free of any debt on the loan, redeeming the vehicle for market value (which may be less than the outstanding loan) and catching up past-due payments in a Chapter 13 repayment plan.