Can I be found guilty for breach of contract for giving a car back to the car lot that I could not pay. The pre-owned car was sold to me at more than twice its value and was sold at auction after I gave it back.
What you are describing here is called a voluntary repossession. It is very common in Arkansas for a car creditor to file a lawsuit to collect what they feel is owed.
Because you signed the purchase agreement, you agreed to the original sale price. Any payments you mad and whatever they got for the car at the auction will be deducted from that original balance owed. When they sue, they will get a judgment for the balance owed and that will allow them to garnish your paycheck.
In Arkansas, a garnishment takes 25% of your take-home pay. A bankruptcy will kill any debt owed on this car. If you want to find out whether that is a good course for you, go talk to an experienced bankruptcy attorney.