Am I liable for damages after repossession?

After our Chapter 7 BK was discharged, we decided to keep one of our vehicles without ever signing a reaffirmation agreement, we just continued to make the lease payments. The vehicle has since had major mechanical problems and is not running. In an effort to save money for the repairs the payments have fallen behind and The Bank sent a letter saying that the vehicle is going to be repossessed due to non-payment for the last two months.

I know that the bank has not been reporting the on time payments for the last year on my credit. So my question is:

Am I liable to see that the vehicle is back in the working condition it was when I leased it, or can I tell them to come get it, as is, without later recourse by the bank to repair the vehicle?

Yes normally if it was a lease, but was there not a warranty or some type of coverage?