What is repossession?
Repossession is defined as a legal process through which the creditor takes possession of the car, home or any other asset pledged as collateral in case of a default by the debtor.
Georgia state law states that if the debtor is late on car payments or has defaulted on its lease or finance contract, the creditor holds the right not only to repossess the car but sell it and also sue the debtor for the rest of the debt. This means that the debtor not only loses his or her car but also has to shell out either from wages or bank account to fulfill the debt.
However, you can prevent repossession in Georgia by filing bankruptcy, if your creditors want to repossess your car. This will provide you with a structured repayment plan and reduce the balance and interest rate you need to repay.
How can repossession affect your business?
Simply stated, repossession can drive your credit to the ground and with it your business. It can cause a 100-point drop in your credit score. What’s more, late payments, collections, and public records will stay on your credit for about seven years.
When can creditors repossess my car?
If you get more than 10 days late with a payment, your creditors will contact you at least once a week. However, if your creditor is a large bank, it will wait for a minimum of 90 days or more before repossessing, others may wait up to 60 days.
However, your creditors cannot resort to harassment by sending bullies or musclemen to seize your car. Creditors cannot cause a breach of peace since they have to act according to the state law.
What are your legal rights regarding repossession?
The repo laws of most states allow creditors to repossess your car at any time. They can do this without notice and also take it from your property. However, the creditors cannot enter your garage or call the police for assistance.
Why you should not hide your vehicle from creditors?
It is not a good idea to hide your vehicle from creditors. Although a repossession company or loan company will not be able to cut chains, break locks or damage property to repossess your car, in some states hiding a car from the repo is a crime.
How to avoid car repossession
Chances of defaulting on timely payments due to no fault of yours cannot be ruled out. However, in the event of such inadvertent default, it is best to appraise your creditor and make alternate arrangements for payment. In most cases, creditors remain supportive and agree on payment, rather than repossess your vehicle.
However, there are ways in which you can stop car repossession or minimize its chances:
● Pay the full amount of the defaulted payment.
● Seek shorter loan terms that are always quicker to pay off. The payback duration of auto loans has grown from four years to as much as seven years. However, your best option is to go for a loan plan of 36 to 48 months duration.
● If all else fails, file for bankruptcy. This will get your car an automatic stay, thereby preventing your creditors from seizing your car.
Chapter 7 bankruptcy:
In a Chapter 7 bankruptcy, you are granted immediate protection from your creditors and your assets are sold to pay them.
You need to file a Chapter 13 within 10 days of repossession to brighten your chances of getting it back. Chapter 13 plan also helps reduce the debt to the ‘fair market value’, if your car loan is more than 910 days old.
Even if you cannot afford to make a Chapter 13 payment to keep your car, don’t offer voluntary repossession to your creditors, since this has adverse ramifications. A better option is to file a Chapter 7 bankruptcy and surrender the vehicle. This will prevent the creditors from repossession.
Repo lawyer in Atlanta
If you want to prevent or delay car, van or truck repossession in Atlanta, Georgia, contact experienced car repossession attorney at the earliest. They will offer sound debt solutions since they know the ways to get you out of debt and save your car from being repossessed.
Why do you need to hire a car repossession attorney in Altanta?
Hiring a repossession attorney in Atlanta means you are saved all the harassment at the hands of your creditors, as also get a breather from repossession. Car repossession attorneys negotiate with the creditors and create a payment plan with the sole aim of saving your car from repossession.
If your car is about to be repossessed due to payment default, attorneys in Atlanta, Georgia are some of the best in providing the practical solutions.
Call 770-671-8830 to learn more about our motor vehicle repossession services.
David Galler is an experienced bankruptcy attorney based in Atlanta, Georgia. For the last 29 years he has filed over 10,000 bankruptcy cases. He has a FIVE STAR client rating on Avvo, Kudzu.com, RateABiz.com, and Google+, among other sites. Over 99% of all Chapter 7 cases he filed have been discharged.