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Easy when you buy a car and drive it off the lot it loses a lot of value. If you’re in a Chapter 7 bankruptcy can there be a way to lower your balance and keep your car? In a chapter 13 case you may be able to do it crammed down where you reduce the loan amount to the car’s value but you can’t do that in a Chapter 7. In a chapter 7 you are allowed to redeem the car. The only thing bad about redeeming your car is you have to come up with cash to buy it. Believe it or not there are many lenders out there who will be willing to loan you money to redeem your car even when you’re in the middle of a Chapter 7. Good credit is not a qualification for these loans but a steady job usually is and the interest rate is usually about 25%. The good thing is you can reduce your balance substantially.