When you file for bankruptcy you can decide whether to keep your car or return it. If you decide to return it then you will walk away from it and owe nothing. If you decide to keep your car you must agree to continue paying for it during and after your bankruptcy and maintain insurance on it. This is called Reaffirming the debt.
If your car is old, has a lot of miles on it, requires a lot of expensive repairs, or you owe more than it is worth, then returning it to the lender through your bankruptcy is your best option because it’s your chance to walk away from it and owe nothing further. We can also put you in touch with lenders who specialize in helping bankruptcy clients get new vehicles.