If you are thinking about filing for bankruptcy in Georgia, we know you have a few questions. One of the questions we hear most often is “what will happen with my car loan?” If you do not own your car outright will you lose it? Can it be left out of the bankruptcy?
Bankruptcy Can Help You Keep Your Car
If you’re filing under Chapter 13 bankruptcy, you’ll be able to keep your car as long as you keep making your Chapter 13 plan payments and otherwise comply with your Chapter 13 plan. Under Chapter 7, whether you keep your car will depend on your ability to make payments. In Chapter 7 bankruptcy, your attorney can file a “Statement of Intention” indicating whether you want to keep or surrender the vehicle. If you cannot afford the monthly payments on your car loan, then you may consider surrendering the car. The auto loan balance will be fully discharged in your Chapter 7 bankruptcy.
King & King has been helping people in Georgia gain a fresh start for over 40 years, and we understand everyone's financial circumstances are unique. To find out what bankruptcy will actually mean to you, contact King & King today to schedule a free initial consultation at 404-524-6400.