Legal Question in Credit and Debt Law in Georgia

Paying For A Repossessed Car

I recently had a car repossessed. The finance company is still calling for payment on the loan for the car. Am I obligated to pay for this since I no longer have the car? The car has been repossessed and sold. Can my wages be garnished to pay for this loan? Or is this just a collection scare tactic?


Asked on 10/12/06, 4:00 pm

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: Paying For A Repossessed Car

When a car is repossessed the loan does not go away. The car is auctioned, and often you will owe as much as you owed before they got the car, as the balance after auction is due, plus legal and repossession fees. Should you not pay them, you should usually expect to be sued and garnisheed, and your credit rating is pretty much ruined for 7 years by the repo.

About the only way to stop this is a bankruptcy, if you are eligible to file.

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Answered on 10/12/06, 5:41 pm


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