Can I Keep My Car If I File For Bankruptcy In Georgia?

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.

Can I Keep My Car If I File Chapter 7 Bankruptcy In Georgia?

You can keep your car, if your bankruptcy schedules exempt the equity value in your car and you keep making your payments in time during the course of the of your bankruptcy case. The exemptions necessary to keep your car are complex and must be filed properly. The experienced bankruptcy attorneys at King & King can explain the process and help you keep your car.

Most people can keep their cars in bankruptcy with little worry. Bankruptcy laws protect property that is needed to start over once your debt is wiped out. A car is one of the basic pieces of property you need to rebuild your credit, stay employed and take care of your family.

A big worry for most people considering bankruptcy is what will happen to their car. The purpose of bankruptcy is to give you a fresh financial start, and the law recognizes that to have a fresh start, a debtor usually needs a car to survive.

Of course, if your vehicle payments are unduly burdensome, you could stop making them, file chapter 7 bankruptcy, and any balance owed to the lender should be discharged.  Relief from the automatic stay will typically be granted to the lender upon the filing of a motion and, after entry of an order, repossession can quickly follow.

Call the bankruptcy attorneys at King & King today for a free consultation. We will help you to a brighter financial future 404-524-6400 or visit us online at www.kingandkingattorneys.com

Can Bankruptcy Save My Car From Repossession?

We know having a car is essential for most people to get to work and earn a living. The good news is filing for bankruptcy will immediately stop an auto lender from repossessing your car.

There are two courses of action that are successful for most King and King clients to not only stop repossession but to also lower car payments. One option is to use a redemption loan in a Chapter 7.  A redemption loan allows you to pay back only the market value of your vehicle, which for many people is much less than what they currently owe on their car loans.  A second option is to file a Chapter 13 and “cram down” your loan: many people can lower both the interest rate (to as low as around 4%) and also only pay back the market value of the vehicle.  This can result in a tremendous savings.

Fortunately, there are several options that can enable you to avoid repossession and keep your vehicle while still obtaining debt relief.

King and King Bankruptcy attorneys can stop repossession immediately and take the actions needed to help you get debt relief. Call 404-524-6400 for a free consultation or visit us at www.kingandkingattorneys.com for more information.