Legal Question in Bankruptcy in Georgia

voluntary car repossesion

I can no longer afford the payment on my car. When I bought it I had 50% more income. I am sinking fianacially and the car is draining me. I owe 29K but the car is only worth maybe 25k due to an accident. I wanted to give up car not my home how do I do this and what will happen?


Asked on 4/01/08, 8:04 pm

2 Answers from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: voluntary car repossesion

Returning it would be a disaster. Generally the lender would sell it at a loss, then sue you for the loss, and then garnishee you and record a judgment against your home.

In some cases, and you need to sit down with a lawyer first, a bankruptcy might protect your home and let you surrender a car.

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Answered on 4/01/08, 8:13 pm
David Blazek The Law Office of David K. Blazek

Re: voluntary car repossesion

Answer 1 is correct - the lender will not do you any favors. In addition to charging you for repairs they will sell the car at an auction and then come after you for the deficiency amount (payoff- auction value - handling costs). If you get to that point, the repossessing lender has to notify you of the sale at auction and give you the right to elect a public auction. You should elect to have the care sold at public auction - it will be a better (higher) price than a non-public auction and that will reduce a deficiency. Pay attention when you get any auction notice in the mail, you have a limited period in which to respond and elect the public form.

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Answered on 4/01/08, 8:54 pm


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