Can the bank take the car if you are behind in the payments even if you filed chapter 7?

If the vehicle is included in the filing, the lender cannot take any action until the BK is discharged. A vehicle is considered a secured loan, and therefore the lender can repossess it after the BK has been discharged. Sometimes the lender will agree to reaffirmation of the debt. The vehicle exemption will also be considered in the BK Trustee's decision.

Another good tactic people can do in Chapter 7 is redeem the vehicle if the amount they owe on the vehicle is greater than the value of the vehicle. Under 11 U.S.C. 722, a debtor can file a motion to redeem collateral for the fair market value. Once the court grants the motion, the debtor can go get a loan elsewhere for the fair market value and pay it to the original creditor, and the original creditor is forced to accept the lower amount and release the title. This cures the fact that the debtor is behind on payments to the original creditor and potentially saves the debtor a lot of money. There are companies who exclusively loan money to persons for redemptions in Chapter 7 cases. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.