Legal Question in Credit and Debt Law in North Carolina

Yes they can. You are liable for what is owed on the car, plus collection and sale costs, minus whatever they get for the car at a sale. Usually, cars are never sold for anywhere near what is owed and you are liable for the balance.

My advice is not to let them repo the car. File bankruptcy and figure out a way to keep the car and modify the loan terms. You can let them keep the car and then file bankrutpcy as well.