My husband and I are trying to sell our car. It is a 2007 Nissan Maxima. His dad has just found out that he has lung cancer and they had to close the family buisness. We can't afford to keep this vehicle anymore. When we bought it we had to roll negative equity from our other vehicle. So we owe about 34,000. I have no idea what to do, it's our only vehicle so we can't afford to be with it.

That's tough! My sister died of lung cancer, so I know some of what you might be going through.

As far as the car goes, you are kinda sorta stuck (not the answer you want to hear). Even if the finance company takes the car and sells it, you'll still owe the balance, which will be significant considering you rolled over negative equity. Then you'd be out a car, too, so you'd have to find something else.

Your best bet is to either A.) find someone who will assume the loan, which will be tough considering the negative equity, or B.) find a way to afford it (2nd job? etc.).

Maybe it would help if we understood the situation in more detail.

Why did the family business have to close?
I assume your husband was part of the business? Is that why the loss of income?
Why couldn't your husband have taken over the business?
Do both of you work?
Have you filtered through the budget to eliminate other unnecessary expenses?

You cannot sell the vehicle unless you can get a purchase price greater than what is owed. The finance company will not sign it over, unless you have the cash to cover the difference between what you sell it for and the balance owed. This is probably unlikely, because if you had that much cash lying around, then you'd have no problem making payments for some time anyways.

Talk to your finance company to make sure there is nothing they can do to help. Some companies have "financial hardship" provisions in their loans, allowing for payments to be delayed, skipped, or modified under certain circumstances.

Additionally you need to review what other assets/liabilities you may have. Can anything be liquidated or refinanced? Are other debts (credit cards and so on) also looming? As Mynion said, do you have the ability to work through the debt by taking on more hours or a second job?

Carrying forward negative equity may have seemed like a nice option offered by the dealer and finance company at the time, but now you are feeling the real jeopardy they have put you in. Taking on debt is never something to do lightly, but now it is yours to own.

Start asking yourself the tough question, "What will we have to do to continue making this payment?" Cut the food budget, cancel vacations, stop contributions to retirement programs? Reduce all overhead expense and spend only on life essentials until you have it figured out. The answer will not be pleasant, but necessary. If you work extra jobs for a while and make extra payments on the car, bringing it within book values, then you may be able to sell it and get a fresh start.