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How Can I Stop Repossession of My Car in Georgia

Borrowing the cash to buy or lease a car is a familiar scenario for most drivers in Georgia. While you make payments each month, the lender retains an interest in the car. This is what is known as a “secured debt,” using the purchased vehicle as collateral against the loan. 

In many instances, a lender may seek to repossess a vehicle after a few payments have been missed. You are now at risk of losing your vehicle. However, there are ways to prevent repossession of a car in Georgia. 

Bankruptcy Lawyer in Georgia

There are a number of ways that a bankruptcy lawyer can help you avoid repossession of your car. At H. Lehman Franklin P.C., we offer clients expert guidance in debt and bankruptcy matters. There may be alternatives to bankruptcy, including negotiating with the lender.

Our aim is to help you either catch up on payments or pursue the most suitable bankruptcy option. Our recommended solutions are based on the financial circumstances of the individual. You can seek consultation with an experienced bankruptcy lawyer in Georgia to explore all your options. 

Car Repossession

The process of repossessing your car can happen very quickly and without a court order. If you do receive a notice of default or a phone call from the lender, do not ignore it.  What you decide to do next could have a dramatic impact on whether the repossession goes ahead. It is time to explore your options and fight to prevent the repossession of your car. 

Avoiding Repossession

Losing a car to repossession will result in a lower credit score and a black mark on your credit report. If you can negotiate alternatives to repossession with the lender, it could save your car. Options such as modification of a loan, or deferred payment may be available to you – but you have to negotiate directly with the lender or through an experienced attorney. 

At H. Lehman Franklin P.C., we can offer expert advice to clients who are facing the repossession of a car. It is important to assess your finances and assets before determining the best course of action.  

Bankruptcy & Car Repossession

If bankruptcy is the best option for in your financial circumstances, H. Lehman Franklin P.C. will support you throughout the process. When you file for Chapter 7 or Chapter 13 bankruptcy, the court issues an automatic stay that will prevent the lender from repossessing your car. 

A Chapter 7 bankruptcy may not permanently safeguard your car from repossession. The lender can continue the process after the automatic stay expires in a few months.  The Chapter 7 process lasts a short time and the lender still retains a lien on your vehicle even if the debt is now discharged and you do not owe the debt anymore. . However, it may give you the time that you need to catch up on payments. 

A Chapter 13 bankruptcy will allow you to keep your car so long as you keep up with the monthly repayment plan agreed with the bankruptcy court and creditors. Depending on the terms of your car loan and when you purchased your vehicle you may be able to reduce the interest rate and/or potentially pay only the value of the vehicle if the value is less than you owe.  A Chapter 13 case often can reduce how much you pay monthly on the vehicle even if you must pay the full principal amount owed.  The case is based on your unique circumstances, so contact an experienced attorney to determine how a Chapter 7 or Chapter 13 will work for you.

To learn more about debt management solutions, including bankruptcy, call the offices of H. Lehman Franklin P.C. for tailored advice today. You can reach  a bankruptcy expert by calling 912-764-9616 or email at info@hlfranklin.com.