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Vehicle repossession laws

Even when you’re one day late on your car loan you’re risking getting your car repossessed. Not to mention, what would happen if you’re 1 month late on your car payments. These are the risks when you finance or lease a car or another motor vehicle. You risk your creditor or lessor holding important rights on your vehicle until you have paid your obligation off.

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Car repossession in Georgia


Understanding the Vehicle Repossession Laws in Georgia

When making a large purchase, people frequently take out a loan to pay for it. To obtain the money you need to buy a car, you generally sign a contract with a lender to make installment payments until the loan is paid off.

However, under the terms of the contract and Georgia repossession laws, if you don't make your payments on time, the creditor has the right to reclaim — or repossess — the vehicle. A creditor can even send someone to your home to tow it away right in front of you. As long as the repossession agent does not "breach the peace" or take the property by force, this is perfectly legal according to Georgia laws.

Once the lender takes the vehicle back, they will sell or auction it in an attempt to cover the unpaid balance on your auto loan. If the car sells for less than what you still owe, the lender can come after you for the rest.

What You Need To Know About Voluntary Car Repossession?

If you've fallen behind on your payments and fear repossession, some people might suggest you pursue a voluntary car repossession, which is sometimes called a voluntary surrender. This means that, before the creditor sends a repo man to tow away your vehicle, you voluntarily return it to the lender or dealership yourself.

While this will protect you from having to reimburse your lender for the costs of repossessing your car, that's pretty much all it will do. It won't let you keep your vehicle, it won't cancel out your loan, and it won't improve your overall financial situation. You'll still be stuck paying the difference between what you owe and the sale price, and after spending all that money, you'll have nothing to show for it.

Avoid Repossession With Georgia Bankruptcy Laws

Georgia bankruptcy laws offer a much more comprehensive debt solution. Not only can filing help you keep your car or truck, but it also can take care of the rest of your debt.

The moment you file for bankruptcy, the court will grant you an automatic stay. This court order will temporarily stop creditors from repossessing any of your property, giving you time to come up with a solution to your debt problems.

In Georgia, you can file under Chapter 7 or Chapter 13 of the bankruptcy laws. When you file for Chapter 13, you can consolidate your debts into a realistic repayment plan for the next three to five years. You won't lose any of your possessions unless you default under the new program.

On the other hand, Chapter 7 laws allow a court-appointed trustee to liquidate your "non-exempt" assets to pay back your creditors in exchange for discharging your debts. Fortunately, Georgia's exemption laws are broad and allow the majority of DebtStoppers clients to keep most — if not all — of their possessions. You can almost always work out a plan that will enable you to keep your vehicle.

Call or text DebtStoppers today at 678-673-2142 to arrange a free debt evaluation with one of our experienced Georgia lawyers. We have helped thousands of families save their cars and trucks, and we can help you keep yours too.

Don't let your creditors take away your wheels! Call or text DebtStoppers today to keep your family on the road.

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