The letter or email you received from us did not specifically indicate that the legal action being taken against you is the result of a repossession of your vehicle; however, many collections arise from a vehicle that has been repossessed or voluntarily surrendered in the past. Under Georgia law, the car creditor must hold the vehicle after repossession for 10 days if they intend to pursue you for any deficiency between what you owe on the vehicle and the amount they receive upon sale of the vehicle. In most cases, car creditors will hold the vehicle for the required 10 days before sending it to auction. Afterwards, they begin the process of relentlessly pursuing you for the amount they claim you owe. The notice you received from our office may be related to a prior repossession or voluntary surrender.

If you are being pursued for a deficiency related to a past repossession or surrender of a vehicle, a bankruptcy case will stop the collection and you may be able to eliminate the debt altogether. Since you no longer have the vehicle, the debt is considered an unsecured debt and will be treated as such in a bankruptcy case. In a Chapter 7 case, that means the debt will be eliminated completely. If you file a Chapter 13, we still may be able to eliminate the debt if you qualify for a 0% plan. We will be glad to discuss your options under bankruptcy to stop any collection activity related to a prior repossession or surrender of a vehicle.

If you would like to explore your options under bankruptcy, please contact our office to schedule a free consultation with a bankruptcy attorney.   They will review your financial situation to determine whether a Chapter 7 or Chapter 13 is best in your situation. They can also give you an estimate for your Chapter 13 plan payment if you decide to restructure the debt on your vehicle in a Chapter 13 case.