If you are thinking about filing for bankruptcy, you may wonder whether you are able to give up a car that you are financing, through the bankruptcy, and therefore relieve your liability on the loan. Surrendering a car is easy to do in a bankruptcy. If you own a car that has no equity, meaning that you owe more on it than its worth, you can simply surrender the car in the bankruptcy, without having to owe any more payments on it. After you receive your bankruptcy discharge, you may finance a new car with the money that you have saved from ceasing payments on the surrendered car. Surrendering a vehicle that has essentially no equity can also be beneficial because you can reduce your monthly expenses and save money.
