27f Making $53k/year. Bought A Used Car That Needs A $12k Engine After 3 Months, Warranty Only Covers $2k, And I'm Considering Bankruptcy. What Are My Options?

Hi Reddit,
I’m a 27-year-old woman who makes about $53,000 a year, and I’ve found myself in a financial situation that I’ve been dealing with for about three months now, and I can’t seem to find a way out.
In January 2026, my 2010 Nissan Murano broke down. The repairs were more expensive than I could afford, but I still owe about $4,200 on the loan. The car isn’t worth anywhere near that much, so selling it wasn't really an option. At the time, my only choice was to get another vehicle so I could continue getting to work, even if that meant taking on a second car payment while I figured things out.
I found a vehicle at a dealership in Oswego, IL (I live in Wisconsin). I originally contacted them about a Chevy Spark and another vehicle on their lot. After a few phone calls, they told me that if I came in with a $500 down payment, I could drive home in a 2016 Chevy Equinox that day.
I test-drove it, everything seemed fine, and I didn't feel like I had many other options. I ended up purchasing it with an $8,000 loan. They also sold me a warranty that they repeatedly described as covering "any and all issues" the vehicle might have. I signed the paperwork, but they only showed me the first page of the warranty documents, which did not mention any coverage limits. At no point was I told the warranty only covered up to $2,000. Had I known that, I never would have purchased it.
Less than three months later, I was preparing to get my first oil change. Before I could get it done, the vehicle went into "limp mode." I knew these Equinox models are known to consume oil, but I had been told that as long as I kept up with regular oil changes, it wouldn't be a problem.
During the oil change, the mechanic found several issues, including metal in the oil. He told me the engine likely didn't have much life left. I called the dealership, and the salesperson once again assured me that the warranty would cover everything and that I just needed to get the vehicle to a mechanic.
Unfortunately, while driving it to the mechanic, it began breaking down further. It started smoking from the exhaust and could barely accelerate. The mechanic diagnosed it as catastrophic engine failure, which he said is a known issue with these vehicles. He quoted approximately $12,000 for a replacement engine because he would not rebuild or install a used engine due to liability concerns. Since then, multiple mechanics have told me that this vehicle likely had these issues before I ever bought it, and that the dealership likely knew there were serious problems with it.
When he contacted the warranty company, that was the first time I learned the warranty only covered $2,000.
Since then, dealing with the dealership has been a nightmare. They put us in contact with their mechanic, who quoted about $5,000 for repairs but refused to work with the warranty company. Whenever we raise concerns, the dealership suggests temporary fixes, such as finding someone willing to rebuild the engine or do the work for free.
We've asked if they would buy the vehicle back. Their response was that because of taxes and fees, I would still owe more than $2,000. We also asked about trading it in for another vehicle on their lot, but they have mostly stopped responding to us.
As if that wasn't enough, I'm also dealing with extremely high electric bills. I live alone in a 625-square-foot apartment. During the winter, my electric bills were reaching nearly $400 per month, and even in the summer they're around $150. I've never lived in a place this small with utility costs anywhere close to that.
I've had electricians inspect the property, and We Energies continues to insist that my heat must be running even though I turned it off in March because I simply couldn't afford it. They have repeatedly implied that I just don't realize it's on. Trust me, it was off.
Between the car situation and the utility bills, I'm barely staying afloat financially. My boyfriend has been helping with transportation, but that isn't a long-term solution, and I can't afford to take on another loan.
I'm looking for any advice on what options I may have, whether that's related to the car, the warranty, the dealership, the utility issue, or anything else. At this point, I feel like I'm drowning and would appreciate any guidance. I'm honestly at the point where I'm considering bankruptcy just to get by, and I never imagined I'd be in this position.
Location: Wisconsin/illinois