You filed a Chapter 7 in 2002. You cannot file Chapter 7 bankruptcy again until 2010, but you are able to file Chapter 13, as that can be filed 4 years from a prior Chapter 7 filing. Bankruptcy stays on your credit report for 10 years.
I am curious how you didn't discharge the loan for the 5,000.00 in your first bankruptcy? If you incurred the loan prior to filing you should have listed them as a creditor. And how did the loan grew double the amount? Did you get a "hard money loan" and reaffirm the loan?
Anyway, if you just surrender the car now, they would sell the car and could possibly get a "deficiency judgment" for the difference in what they got in the sale versus what they say you owe them. Once they got the judgment, they could attach or garnish bank accounts or wages to collect on the Judgment. This process does not happen over night, it will depend on how aggressive they are about getting the Judgment. They will have to sue you, you get a summons and a chance to "answer". Always answer, never ignore a summons, even just repsonded I don't agree, then stops them from getting a default and will cost them more to move forward. Most people just ignore these things and then the companies get a default judgment.
Your best bet is to seek a consultation with a bankruptcy attorney and bring the note they have with you, they can see the terms and what is going on, and advise you what to do. I certainly wouldn't pay 10,000.00 for a car if it is junk. Better to let them do what they will and stall them long enough so if you do need to you can file bankrutpcy again. I hate to advise something like that, but it may be your only way out. Again seek some one on one assistance from an attorney in your area.