Legal Question in Credit and Debt Law in Georgia

They may be able to repossess the car. If there is a deficiency on the amount owed, the company can sue you for the difference. If there is a judgment, one way to collect is to garnish your wages.

10 Glenlake Parkway

Suite 130

Atlanta, GA 30328

(770)367-1234

The company can likely take the property, and then sue you, and then attach your wages and bank account.

In such situations a bankruptcy may stop or minimize some consequences so you should see a lawyer ASAP.

Is this a car title loan? That would generally be the only way they could foreclose. Never do this again. These people are worse than the Mafia. Same is true for payday lenders.

Can you find a way to beg or borrow the cash? If they take the car, you will be out the car and they will hold you liable for any balance after they sell the car. They add in any repo or sale fees and you will have to pay a deficiency. i suppose it depends on how much is owed and the cost. However, this would generally be a matter for small claims which means they will may not need a lawyer and it will not cost them very much. If that happens, they will get a judgment (assuming that you have no defenses).

Of course, this all takes time and perhaps things will get better for you such that you will be able to pay later on. However, if not, they may try and collecto on the judgment by garnishing your wages (if you are regular W-2 employee), levying on your bank account or trying to execute on other assets that you own free and clear.

While bankruptcy can stop this and while you do not need to do it today, bankruptcy does have consequences that will be with you a long long time. I like to call bankruptcy the "nuclear option" as its like a nuclear bomb - you don't want to use it unless you really really have to. If you have a lot of debts and you might be needing credit again, then bankruptcy might make sense. If this is your only debt or there are other circumstances, it might not. I would see if you can get a free consult with a bankruptcy lawyer to go over your assets and debts and see if bankruptcy is right for you. If its not, then any debt can always be settled, even after judgment, to stop wage garnishment or levy. And this is not done in secret; you will get plenty of notice.

However, try to avoid them taking your car.