Easier to fold towards the engine, slightly more clearance if you fold to the out side.
Folding to the outside might be more difficult to keep from poping the seam open.
Talking like 1/8" difference there.
Dont think grinding off is a good idea, would need to fab a filler piece to hold it all together and keep water out out the inside footwell area.
Start it with a couple vise-grips to start the fold and keep from splitting the seam open the the big hammer to finnish it off.
Body lift might help keep the big tires off the bodywork.