With secured debt such as a mortgage or car loan, your obligation to pay is secured by the creditor’s rights to the collateral. If you do not stay current on the debt, the creditor may pursue that collateral. Chapter 7 gives you some important advantages in dealing with your secured debts. In some cases you may have to reaffirm your obligation to paying a debt like a mortgage or vehicle loan. In others, you may be entitled to use state or federal bankruptcy exemptions.