Chapter 13 bankruptcy offers many excellent remedies for debtors who are behind on home loan or car loan payments. Normally, if the borrower goes into default on a home loan, the lender will eventually initiate foreclosure proceedings. Similarly, if the debtor defaults on a car loan, the lender will will usually initiate repossession action. Fortunately, Chapter 13 bankruptcy often allows the debtor to pay the missed payments through the bankruptcy repayment plan while being shielded from the creditor. As a result, the debtor in default is then able to keep their home or car, so long as the debtor complies with the Chapter 13 plan's terms.