IMPORTANTIf your vehicle has already been repossessed You MUST ACT within 10 days from the Repo date.

When you finance a car — or even borrow money against one — the creditor retains the right to repossess it if you are in default. While ‘default’ can include several things, including failure to keep it insured, it is most often failure to make the required payments.

Once a car is repossessed, the financial effects can be devastating. You probably already know how much any car decreases in value once you drive it off the lot. Well once it is repo’ed, it is sold AT AUCTION! Add to that fact the creditor will then ADD to the amount you owe the auction company’s fee AND the repo fee and you soon see just how financially devastating a repossessed car can be.


What are your Options?

Georgia law gives you very little help: The majority of creditors choose to follow guidelines that A) give you 10 days to B) pay off the car IN FULL! Title pawns are particularly dangerous — under Georgia Law they may own the car even though you are still driving it!

That is why Chapter 13 Bankruptcy is used to GET YOUR CAR BACK!

Bankruptcy immediately begins to work for you by placing an automatic stay against all of your creditors. This prevents them from taking an action to collect debts. And continuing to hold your car is such an action. Once your bankruptcy attorney has offered the proper protections for the creditor (like proof of insurance and a repayment plan) you are on your way to getting your car back. It is not automatic or guaranteed, but you need to meet with your Bankruptcy Attorney to learn more.

So what is a Chapter 13 Bankruptcy?

Chapter 13 is a repayment plan that usually lasts somewhere between 3 and 5 years. It is administered by a federal judge and participation is not really optional for the creditors — it is mandatory. Once you and your attorney have put together a course of action, the Court and the creditors certainly can object to it, but you still have your protection. So you’re going to want an attorney who specializes in Bankruptcy and getting your plan APPROVED!

If you are facing repossession and do not have the financial means to repay your delinquent amounts or maintain your current payment schedule, contact one of our experienced bankruptcy attorneys in Atlanta to find out how bankruptcy can help you.