Legal Question in Credit and Debt Law in Georgia

Your car can be repossessed if you are 1 second late. As for what you owe now, we don't have your contract. You do. Read it. It will spell out your late and towing fees (which you must pay) and tell you how to calculate other charges. You do likely have a right to redeem the car, and need to see what fees are necessary to do so.

Contracts and financial responsibilities are not based on what you "feel" like paying.

Unfortunately, the other attorneys are correct. It does not matter that you called or that you were "only" 10 days late. The point is that you were late and any time that you do not pay for your car on time they can repo it. Of course they can only repo if they can find it ... but its a crime to conceal property that is a subject of a security interest like a car so I am not suggesting you do that.

Finance contracts typically contain an "acceleration" clause. Pursuant to this clause, the lender can demand not only the past due sum but the whole entire balance owed in addition to costs of repossession. While you have a right to redeem the car, most debtors have a hard time coming up with the past due payments let alone the whole sum owed and the collection costs.

It gets worse. Even if you allow them to keep the car, the car is typically sold at an auto auction where it brings in a whole lot less than what is owed. If that happens, the sale proceeds are applied to reduce the balance, but the repossession and sale costs are added back. You will then be responsible for the deficiency. So you will then be in the position of having to pay for a car that you no longer own.

There's more - if you do not pay the deficiency, then the lender or, anyone they transfer the debt to, can sue you and get a judgment against you. If that happens, the judgment creditor can garnish your wages (up to 25% of your disposable pay), freeze your bank account and try to seize and sell any other assets that you own free and clear. Of course, they have to get a judgment against you first to be able to do these things and you would get notice of it, but many people ignore this until its too late,

Your best bet is to redeem the car. You can try to negotiate and pay the past due sum and any collection costs, but this may not work. Try to redeem the car anyway by getting another car loan or borrowing the funds.

If that is not feasible, let the car go. I don't think I would file bankruptcy if this is your only card debt (if you have other debts then consider it as possible option). Just understand about the deficiency and start putting aside money now so that when the lender or assignee demands that you pay the deficiency, you will have funds with which to resolve the debt,. The good news is that once the car is sold, the deficiency becomes like any other unsecured debt, which means that it can be negotiated and settled for less than the full amount.

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