If you surrender your car, it looks to the financial world as if you have had a repossession, which is a huge negative on your financial record. The surrender will knock your FICO score down by at least 100 points, if not more, and will literally ruin your credit for a period of time. It can be from three to seven years. It is much better to work through a bankruptcy. If you are having trouble meeting your financial obligations, you can choose which loans you can retain, and those you wish to protect yourself from, with a Chapter 7 or Chapter 13 bankruptcy.
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