I think you've answered your own question.  Letting the truck be repossessed is not going to clear your credit.  It will merely show a repossession and then, as you point out, there will likely be a deficiency balance owed after it is sold.   Filing bankruptcy is a good way to resolve the amount you owe on the balance as well as giving you a definite starting over point on your credit to start rebuilding.  Depending on what other debts you have, bankruptcy may or may not be a good choice overall.I suggest you consult with a bankruptcy attorney to get more details and evaluate your options more fully.  Please check out my webpage below if you are interested. Mark J. Markus, Attorney at LawHandling exclusively bankruptcy law cases in California since 1991.http://www.bklaw.com/