Once a bankruptcy is filed, a decision needs to be made on whether to keep the vehicle or surrender it back to the creditor. If you want to keep the vehicle and file a Chapter 7, car payments must ultimately be made and it is better not to get behind or to get caught up quickly. If Chapter 13 is filed, then in Nebraska and Iowa, your car loan gets recalculated into a monthly payment paid to the Trustee. Therefore, in Chapter 13, you would stop making your car payment.
Obviously, if you are going to give the vehicle back, then it doesn’t make sense to continue on with the monthly payments but do keep it insured until the transfer is made.