If you have decided that you no longer want or can afford to keep your vehicle you can voluntarily return it to the dealer. This will help you avoid any embarrassment of having the tow truck come to your house. Make sure you hand the keys to someone and get his or her name and contact information. Note the date and time you surrender the car as well so that you can cancel the insurance policy on the car. It is important that you do not just drop it off and walk away. If you are surrendering the car and keeping it until the creditor comes to get it, there is an argument that you have a duty to keep it insured until the creditor picks it up.
You’ll want to make sure the dealer reports to the financing agency that you have turned in your car. The financing agency will sell your car probably for less than you owe. The voluntary repossession will be noted negatively on your credit report and you will still be responsible for the deficiency balance which you can discharge when you file bankruptcy. If you file a Chapter 7 the deficiency balance will be discharged along with your other unsecured debt and if you file a Chapter 13 more than likely most of the deficiency balance will also be discharged.
Either way if you are considering repossession, you should consult an experienced bankruptcy attorney to discuss your options for the best possible outcome.