I would like to know what will happen if my hubby is declared a bankrupt and I am the guarantor for our family car. How I can take ownership of the vehicle and continue with the monthly payments (without making a full settlement then a reloan) because we do not have the means to do that. I tried checking with bank involved but was told that it was the only option.

If you and your husband both are on the loan, and only he goes bankrupt, you merely are still liable for the loan, since you are listed responsible.

If you are not on the loan, and he goes bankrupt, he can re-affirm the car debt and continue to pay it.

There is really no option to to pay the bank back less than owed, unless they would agree for some reason.