Will we lose our car in a chapter 7 bankruptcy?

As long as you continue to make the timely payments, it won't affect you keeping the vehicle in that regard. Also, it won't affect your husband's credit. The one thing to be clear about is whether any equity exists in the vehicle with regard to it potentially being unprotected and subject to liquidation - but this is something that is subject to the applicable exemptions available to the person filing bankruptcy.

I doubt very much you will lose the car so long as you keep the payments current. I would not worry too much about that unless it is a very expensive car in which your husband has a lot of equity. You should be able to ask your inlaws' attorney to explain it to you so you will not be worried. The car needs to be disclosed by your inlaws in their schedule B and the loan on schedule D. However, it must be disclosed that the true owner is your husband (equitable owner) and that he is a co-owner. Your husband must be disclosed also as a co-debtor on the car loan. Your husband's credit report will show that the car loan is involved in a bankruptcy case since that is true. However, that should have no effect on his credit rating. Unfortunately, the word bankruptcy being mentioned in his credit report may be misunderstood and he may be denied credit by the less sophisticated lenders and others using credit reports without fully understanding them, such as landlords. I am sure someone will think that your husband filed for bankruptcy since the report will mention that the loan is involved in a bankruptcy case. Any chance of your husband getting a new used car loan and paying off the existing loan before the bankruptcy?

Proving that you have made all the payments should help you establish real ownership. If the car is not paid for your husband's credit will be affected and he can be sued by the lender. It depends on how the bankruptcy schedule B describes this asset. Also, it depends on how the exemption is claimed in Schedule C. Your parents' bankruptcy attorney should be able to explain those things to you.

The car is subject to the bankruptcy court (assuming it was listed as a debt). It will not effect your husband's credit and, provided you continue to make the payments, they probably won't ask to repossess the car. Your mother in law can reaffirm the debt if she wants to, but I don't recommend doing that.