Advise for my mother going into assisted living

Not sure this is the write place to post but we're at a loss.

My mom bought a new car about 2 years ago. A year ago she realized it was unsafe for her to drive due to an ongoing medical issue. It's since sat in her garage except for an occasional time that my brother drives it to take her to appointments. She's underwater on it - he said local dealerships are selling similar for $25K - she owes about $32K (at about 6.5% interest).

She owns her house but will likely be selling it soon to move into assisted living. Some minor credit card debt but she's putting $9K onto a credit card (0% for 21 months) to replace the leaky roof on her house before she moves. She also has about $140K in a 401K.

What are the best options with the car? Initially she wanted to default on the loan. Yesterday the thought of declaring bankruptcy came up. My husband thinks maybe she should continue paying the minimum payment and hopefully at some point she'll be able to sell it without a loss. Any suggestions would be appreciated.