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.
