Legal Question in Credit and Debt Law in Georgia

You failed to tell us anything about your house, such as whether it is owned free and clear, etc. It is highly unlikely they will try to foreclose on your house. It is very probably they repo the car, sell it for auction value, get a judgment against you for the difference in that and what you owe plus fees and interest, garnish wages and accounts and put a lien on an property you own. That means when you try to sell your house you have to pay the debt.

It is possible.

If you let the car go back usually you will get sued for a large deficiency. The judgment becomes a lien on your house. Additionally, the creditor can garnishee your wages and bank accounts, and do other things.

Long before that happens, you need to see a lawyer (that means do it now) to determine what options you may have to protect yourself, your income and your assets. The longer you wait, the worse it gets.

Avoid a car repo if you can. If you let the car be repossessed, it is sold at an auto auction. These do not bring in anywhere near the value of the car and it is likely that you will still owe the lender. If that happens, yes, the lender can sue you. If the lender gets a judgment, the lender can try to collect. If the house is mortgaged, then the lender cannot foreclose. Instead, the lender will look for the quick and easy way out by simply garnishing your wages (they can take 25% of your disposable pay maximum if there no other garnishhments) and they can freeze your bank account. If you own the house free and clear, all bets are off. The lender can try to collect. Georgia only lets you protect up to $10,000 equity in your home.

So the best bet is to avoid repo by selling the car for what is still owed (unless the car is worth less) or trying to keep paying for it. But see a lawyer before yuo do this. If there is justs no way, then look to see if you can file for bankruptcy, which will allow you possibly to keep the car or renegotiate the terms of the car note.

Failing that, then let the car go and start saving your money NOW so that you will have funds to settle the debt when the lender comes asking for the balance owed.