Legal Question in Consumer Law in Washington

Re: Auto Loan

Short answer: whatever you do besides make timely payments is going to hurt your credit.

You need to mitigate your losses - in other words, get the car back to the finance co so they can auction it off. You are going to probably wind up owing a deficiency balance on the car as likely they won't get as much for it at auction used as you paid for it new.

Whatever winds up on your credit falls off again, given time. You may well find that if you are employed, a chapter 13 reorganization of your debts is reasonable, and most people can 'pick up where they left off' after a chapter 13 in two years or so.

In a 13, you get to keep your property.

The alternative is to suck it up and make the payments. If you cannot, cut your losses soon, as otherwise you will be continuing to make payments on a vehicle you no longer own.

Good luck -