Legal Question in Credit and Debt Law in Georgia

You will now spend more on a lawyer than the small increase in premium. Your delay in reporting the accident may mean denial of coverage. A repossession will ruin your credit, likely lead to a suit and garnishment, and other consequences. Again, see a lawyer to evaluate options such as bankruptcy.

You are in a bad situation. If the car is repo'd it will be sold at auto auction. Since the car is damaged, it will not bring in very much and as far as the lender is concerned, you will be liable for the balance owed on the car. The deficiency balance owed will be bigger for you because the car is worth less.

With a deficiency, the lender or anyone to whom the debt is assigned, will try to collect. Eventually, the creditor will sue you and if that happens and if the creditor recovers a judgment, the creditor will be able to garnish your wages, levy your bank account and seize any other assets owned free and clear.

Should you file bankruptcy? It depends on your circumstances. Bankruptcy has its own consequences. The best thing would be for you to keep your car and the terms of the car loan can be modified but that would involve you filing a chapter 13 bankruptcy and what other debts you have. With a chapter 7, you could keep your car but you would need to find a way to get current. If you don't care about the car, chapter 7 would be a way to get rid of any deficiency although your credit is still going to be toast for awhile (while a repo is not great, bankruptcy can be worse in the short term for your credit). You should only consider bankruptcy if your dischargeable debts are over $10,000 - that is my unscientific rule of thumb. It is not cost effective for you to file if your debts are under this as it is possible to come up with other ways of resolving the debts.

Your insurance issue is another matter. I don't know if you had comprehensive insurance and if it would have covered the damage to your vehicle. You should review your policy to see what it says about damage to your car and reporting damage.

Is there any other way for you to get current? If not, then you had better contact a local attorney and review your options.