In Chapter 7, there are three possibilities for dealing with a debt that is secured by collateral, one of which is a “redemption”. Redemptions are usually only done with regard to vehicles, though it would be theoretically possible to do it with other types of personal property too. This article deals with redeeming cars. This is possible in Chapter 7, but not Chapter 13.
First, with the agreement of the creditor, you may keep the car, and continue your obligation to pay for it. This is called a “reaffirmation”. The effect is to leave the car out of the bankruptcy and continue to pay for it, usually under the terms of the original contract. A reaffirmation usually requires that you be current in your payments on your car note.
The second possibility is to “surrender” the collateral. In that case, you lose the car to the creditor, and the debt is discharged. The creditor can’t collect any money later. This makes sense when you can’t afford the debt, or if something is wrong with the collateral so that you prefer to pursue other options. You can certainly surrender the collateral even if you are behind on the debt and a “reaffirmation” is not possible.