Stopping Car Repossession
What is Automobile Repossession?
Georgia law on motor vehicle repossession states that when a car, truck, SUV, or other automobile is leased or financed, the lessor or creditor retains the right – called a “security interest” – to repossess it if the buyer fails to make payments in a timely fashion. Repossession is permitted as soon as you default on your auto loan or lease, and can take place without court order or prior notice.
How Do I Avoid Repossession?
The good thing is that there are multiple options available to you if there is a car in your household under the threat of repossession. Filing for bankruptcy is one option. Keeping the automobile ultimately depends on a few factors, but the majority of people that file for bankruptcy are able to keep their car. Bankruptcy will create an automatic stay, which means that no one can repossess your automobile. Under a Chapter 7 filing, the motor vehicle “exemption” will largely decide if you will be allowed to keep your car or not. Another way is to file is under Chapter 13, which may allow you to repay your automobile debt in a more affordable manner. In some cases, your attorney can lower the amount that is required to pay to the current market value, which will lower your interest rate.
What Are My Next Steps?
For more information about automobile repossession and how to stop it by filing for bankruptcy, give us a call at (678) 323-2394 or request a consultation today. We are conveniently located in cities around the state of Georgia in Athens, Conyers, Duluth and Morrow.