CAR?

It would be helpful if you could provide a little more detail. Were you planning on filing Bankruptcy anyway, or are you just looking at filing it to get rid of the car?

I'm assuming you didn't have insurance on the car? If you did, what was the outcome of the insurance adjustment from the accident?

What chapter of Bankruptcy are you considering?

All this info will help us give you a better answer.

I can hark for a few moments on the moral/ethics of the situation. It's not their fault you wrecked the car; after all - in good faith they loaned money out of their hands so you could get a car; you wrecked it, and now you don't think you should have to pay for it. .......

As I point my finger at you, I also consider that they did not do their job in keeping up with your insurance. Had they verified coverage at the time you got the car and added themselves as a lienholder, then they would have received notices anytime your insurance lapsed; at which point they could have added their own insurance or repo'd the car before it got wrecked. So basically, their insurance dept fell asleep at the wheel. Had your loan been with my company, we would have never let you drive without insurance.

To answer your question, essentially, yes you can go bankrupt. Whether 7 or 13, you will have the option to "surrender the vehicle," at which point the creditor has the option of coming to pickup the vehicle for salvage. If they don't come get the car, then they are basically consenting to an unsecured claim (Chap 13), or else they will lose out completely (Chap 7).