First, the interest on vehicles can always be reduced. The amount paid in interest depends upon several factors, including your credit history, your car payment history, your income, and your likelihood of success in bankruptcy. In other words, interest is calculated on risk, and can be reduced to anywhere between 3.25-6.25%.Step 2
Second, the amount paid on a vehicle depends on how long you’ve owned the car. If you have owned your car longer than 910 days, or 2.5 years, then you are only required to pay back the fair market value of the car, in contrast to the amount you actually owe on it. Courts determine fair market value based on the amount a consumer would pay for a vehicle of the same condition at retail. So, if you’ve owned your car for 2.5 years, and you owe $20,000, but the car is only worth $12,000, then you would pay $12,000 divided over 60 months, in addition to interest. This can bring a huge savings and is a great benefit to filing bankruptcy.Step 3
If you have purchased your car within 2.5 years, you are required to pay back what is owed. You will still benefit from the reduced interest, however. If your car has been repossessed by a creditor within 10 days and has not been sold, you can get your car back by filing Chapter 13 bankruptcy, although you may be required to pay repossession and storage fees. A creditor who sells your car before 10 days have passed cannot collect a deficiency, so creditors almost always wait 10 days before selling the car. If your car has been repossessed, but the creditor has not sold the car, you can still get it back through bankruptcy. We have had cases where automobiles were repossessed and our client waited to file bankruptcy over a month after repossession, and we were still able to get it back. However, there is no guarantee in these situations, so if your car has been repossessed, it is best to file bankruptcy immediately in order to increase your odds of retrieval.Stop Car Repossession Attorneys in Atlanta, Georgia
In Georgia, you can file bankruptcy to stop a repossession and even have time to get your car back after it has already been repossessed when you file bankruptcy. When you are behind on your car payments, creditors have the right to repossess your car. Whether the creditor is going to show up unexpectedly at your home or place of employment to take your vehicle is a stressful fear. Filing Chapter 7 bankruptcy can at least temporarily stop repossession so that you can have a plan for how to address your financial situation. Filing Chapter 13 bankruptcy could enable you to consolidate past due payments to automobile creditors and other debts into a monthly payment. In a Chapter 13, you can even pay the car creditor less than the balance you originally owed, and you can reduce the interest rate. Whether you file a Chapter 7 or Chapter 13 to save your car, the automatic bankruptcy stay will apply to prevent creditors from taking your car from you without a court order. You can ultimately decide if you would like to keep your car or surrender it through bankruptcy. If you have any further questions about how to stop a repossession with bankruptcy in Georgia, please call Law Offices of Charles Clapp at (404) 585-0040 or contact us on the web for a free consultation with an attorney.