Stop Car Repossession in Decatur, Georgia

Car Repossession in Decatur, Georgia

If you are looking for an attorney in Decatur, Georgia to help you with a car repossession, you may want to consult with a bankruptcy lawyer to stop the repossession. Like any other collection activities, filing bankruptcy in Georgia prevents repossession.

A bankruptcy filing in Georgia results in the issuance of what is known as an automatic stay. The “stay” is a court order that tells creditors they have to stop all collections activities against you, including repossession of a car. In fact, the stay prevents creditors from calling you, sending you letters or even bills during the period in which you are in bankruptcy. Any violation of that stay could result in sanctions against the creditor.

Under some circumstances, filing a Chapter 13 bankruptcy case can even be a way to get your car back after it has already been repossessed. In Georgia, there is a law (O.C.G.A. 10-1-36) that allows you to redeem your car after repossession as long as you opt to do so within ten days of the repossession. Filing bankruptcy  in Georgia within the ten day period after repossession enables you to get your car back.

When you file a Chapter 7 bankruptcy case to stop repossession, you will have to catch up entirely on the arrears on the car payment in order to keep the car in bankruptcy. If you are far behind on your car payment and you want to keep your car, you probably would be better off filing Chapter 13 bankruptcy because you would be able to catch up on the car payments by making payments through your bankruptcy case.

In a Chapter 13 case, the bankruptcy laws allow you to roll up the car arrears and any other debts you have into one consolidated monthly payment. You can even lower the car interest rate. In some situations, you may be able to lower the principal balance on the car if you purchased the car more than 910 days prior to filing bankruptcy. Under the 910 day rule, you only have to pay back the fair market value of the vehicle if it is less than the amount of the total balance.

Of course, if you are behind on your car payments and facing repossession in Georgia, in order to determine what type of bankruptcy is best for you, you need to consult a bankruptcy attorney. If you wish to schedule a free consultation with a Decatur, Georgia bankruptcy attorney, please call the Law Offices of Law Offices of Charles Clapp at (404) 585-0040.