Filing bankruptcy can prevent your car creditor from repossessing your car. In many cases bankruptcy provides a structured repayment of the debt and can even reduce the balance and interest rate that you have to repay.
The Automatic Stay Stops Car Repossession
When you file for Chapter 13 bankruptcy, the court puts an order called the “automatic stay” in place that prohibits debt collection attempts. The stay applies to most, but not all, creditors and debt types. It will prevent a lender from repossessing your car.
In order to continue to go to work, take your kids to school, go shopping and other daily activities, you need a vehicle in Georgia. When financial problems arise, such as reduced hours of work, a medical emergency, a divorce or loss of employment, your car can be in danger of being picked up leaving you helpless.