Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
You can file a Chapt. 11, however, the proceeding will be complicated (you own the asset, but you don't have the loan - so the creditor will have a right to perfect the lien and get paid, you won't be able to include the loan in your repayment).
If you are considering Chapt. 11 - hire a lawyer - do not attempt a Chapt. 11 on your own. Make sure that the attorney has recent experience filing Chapt. 11 bankruptcies (most consumer bankruptcy attorneys do primarily Chapt 7 and Chapt 13 work, you need somebody that has recent experience with Chapt. 11 work).
Practice pointer: do not just file a Chapt. 11 - doing it this way is rarely successful, in order to succeed in a Chapt. 11, the debtor will have made preliminary agreements with the creditors regarding the Chapt. 11 plan prior to filing, filing first and trying to work out a plan later can succeed, but it is rare.
Yes, they will need to make a motion to the court to do so, showing that the plan is not sufficient (this is pay off why you want an attorney).