Does filing bankruptcy in Virginia prevent a possible car repossession?

Filing bankruptcy in Virginia puts an automatic stay or stop on all collections activities that are going on against you. This means your creditors have to stop doing whatever it is they are doing to try to get money from you, whether those actions are making collections calls or whether those actions are going through a repossession process. This means that the minute you file bankruptcy, a repossession action that is going on must stop. 

However, this doesn't necessarily mean you'll get to just keep your car. The bankruptcy code is not going to erase the car loan debt and let you keep your vehicle as this would be grossly unfair. The vehicle loan is a secured loan, which means the car is the collateral that secures the loan and guarantees the lender will be paid. If you cannot work out a repayment agreement with your lenders or become current on the vehicle itself during the bankruptcy process, then you are not going to be able to keep the car at the end of the bankruptcy. Furthermore, if you are declaring chapter 7, whether or not you'll be able to keep the car depends on whether you reaffirm the loan (agree to pay it despite the bankruptcy) as well as on whether you have too much equity in the car for it to qualify as a bankruptcy exemption.

All of this is a bit confusing for people who are not familiar with the bankruptcy code and its rules and exemptions as far as what property you get to keep under a chapter 7. As such, it is very important for you to get help from a lawyer if you are considering filing for any chapter of bankruptcy.