The Lender may or may not want to repo a wreck. Bankruptcy, same deal. Call the lender, tell them what the car looks like, and let them decide.
File bankruptcy if you are buried in unsecured debt, not to save the car. Especially a wrecked car.
"Repossession" looks slightly better (not MUCH better) on a credit report than a Chapter 7. Let it get repossessed.
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