This sounds like a wise decision to me. You are going to reduce your financial burden quite a bit by relieving yourself of that huge car note. Smart move. Let's hope the new car is reliable, and you will be able to keep it for a while.
The vast majority of people file bankruptcy because of three major life events: divorce, unemployment or illness. In your case, you are now a single mother, and you decided that having a luxury car was not a prudent decision with your current financial situation. Rather than try to keep paying on a car that likely was worth a lot less than what you owed, you got something more affordable.
I suggest you surrender the more expensive vehicle prior to filing your case. Try to get the lender to pick it up right away so that you aren't dealing with two vehicles. The lender will take the car back, sell it and send you a bill for any balance remaining after selling the vehicle. You will still be able to wipe out that remaining balance, called a deficiency balance, in your bankruptcy case.
In the event you still have the vehicle after filing your case, please make sure you are current on your car insurance payment. Nothing could be worse than getting into an accident in that car after you file bankruptcy, only to learn your insurance lapsed. That post-filing liability could be your responsibility after the bankruptcy is over.
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