Are you guys serious?! Home equity line of credit for a freaking car ?!?!? You are off your rockers! You are better off defaulting on the car loan and letting them come after you for the full amount! Some of these people are suggesting bankruptcy?! WTF?!!? Are you kidding me? For a loan that is no more the 30k your gonna file bankruptcy?! Listen worst case scenario, you completely default on your car loan and the bank comes after you for it. You have two options, 1 is to give the car up to the repo man, or 2 hide the car and don't let it become repossessed. Trust me it is VERY EASY to hide a car from a repo man for extended periods of time. If the bank cant recover their asset then they are in a bad position. Thats when they will call you to negotiate. You will have A LOT of time before they serve you in court.
You must make a decision if you want to be responsible and give up your car/pay them what you owe them or you must come to strict terms that you will not pay them on the terms that YOU signed and go from there. People are very easily persuaded by creditors that have them in debt for a good amount. Let me tell you that if you choose to go the route of not paying them you can negotiate a settlement, especially if you have their asset. The problem is if they end up suing you must PROVE that you have made a good faith settlement offer in writing.
You already know that your in a bad position. You should pay the car note according to your contact. If you choose not then you must be smart about it. What you have is a secured loan, if you hide the car they no longer have any security. They WILL negotiate with you. This is very dirty tactics but it works.
Worst comes to worst let them take the car and come after you for the balance. TRUST ME it will be better than filing bankruptcy! If you go to court and you tell the judge "I am broke, unemployed looking for work, have no savings or assets" the judge has VERY LITTLE to go on. That does not satisfy the requirements to lean against income.
This is very dirty play and your credit will get jacked, no doubt about it. But properly played you can negotiate a settlement that is less than your overall contract balance.