I'm in Texas and filed for Ch7 in October 2005. The debts for a failed business as well as personal debts were included and discharged. I kept my auto and was told I would be able to keep it as long as I kept up the payments. Since that time I have fallen behind on the payments and am looking at a repo unless I can come up with about $1250 in the next few days. I will probably be able to get the money to become current but this is where the problem comes in. I have a $450 monthly payment that is really beyond my means and have only kept the auto because I felt it would be difficult to get a new auto loan after the bankruptcy. However I'm thinking this $1250 may be better spent as a downpay on a different auto with a lower monthly payment.
Here is my question: Since this debt has been discharged, if I go ahead and surrender the auto, would I still be liable for the difference after the leinholder sells it? My loan balance is approx $18,000 and blue book value is about 15K ...of course the leinholder would probably get less than that. I think that this can be a solution but don't want to end up in a worse situation than I am already in. I'm trying to minimize the amount of debt I'm carrying and don't want to get stuck with another $3K+ that I wouldn't be able to handle.
Thanks for listening... all help and advice is appreciated.

