You can file bankruptcy and eliminate the debt, after the filing and when you get your discharge you would then present the bankruptcy filing to the DMV office in your state showing that you no longer owe the debt. Depending on the value of your car, your other assets, and your income would determine what you can keep. Most of my clients keep all of their assets and do not lose anything, it is a common misconception that you will lose all of your property. Take the time to go meet with a bankruptcy lawyer in your area to get some good complete legal advice on your situation, most give free consultations.
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