My married daughter purchased a new car. Since she owed more on her previous car than it was worth, the dealer and bank loaned an additional $5,000 on the principal. Now, she has recently divorced, moved home along with her daughter, has a part-time waitress job, is going back to college and wants to get her life together again. The car payment is too high. If I contact the bank and arrange refinancing, she will never get out from under the loan. Question: Should we turn in the car? With no assets, does the bank have any recourse? She wants to do the right thing, but between student loan and this car she is in a bind. Part of me thinks the bank should never have loaned the excess in the first place. Any suggestions and info would be appreciated.