Using Bankruptcy to Recover Your Repossessed Vehicle
Georgia repossession law allows lenders to use “self help” when a vehicle installment contract goes into default. Vehicle sales contracts often contain fine print which provides that your account will be considered delinquent if you are even a few days late.
The larger, “mainstream” vehicle lenders like GMAC, Toyota Motor Credit and Ford Motor Credit will usually give you an opportunity to catch up – our experience has been that these larger lenders won’t send out the repossession agents until you are four to six weeks delinquent. By contrast the “buy here-pay here” finance companies will look to repossess your car if you are even a few days late.
Regardless of who issued the loan, you should not assume anything. The minute you are late with your payments, you run the risk of repossession.
Does Georgia Law Give You the Right to Redeem Your Car?
Georgia law does give you some, limited rights. A repossessing lender must give you ten (10) days to redeem your car before disposing of that car at an auction. Unfortunately, if you want to redeem your car, you have to pay the full balance due, plus the costs of repossession and storage. Further, the lender can hold any personal possessions you may have left in your car until you pay for storage and repossession costs.
While some vehicle lenders may attempt to be reasonable and work with you, many will not. After all, there are many markets for used vehicles and some lenders take the position that it is easier to resell your vehicle than to work out a reasonable payment arrangement with you.
Can I Use Bankruptcy To Get Back My Recently Repossessed Vehicle?
As your attorneys, we are people too. Your frustrations and anger become our concerns when we accept you as our client. Nothing gives us more motivation to fight for our clients than news of a vehicle repossession.
You may already know that the filing of a bankruptcy will stop a repossession from happening – but did you know that we can help even if the repossession has already happened?
Don’t Delay Taking Action When Your Vehicle is Repossessed
Here is some good news – if your car or truck was repossessed within the last week or two there is a very good chance that we can use the power of the bankruptcy laws to get your vehicle back. Ginsberg Law Offices uses the strategy of a Chapter 13 bankruptcy combined with a special lawsuit filed in Bankruptcy Court called a Complaint for Turnover to recover your vehicle. Chapter 13, as you may know, functions as a repayment plan. A repayment plan can only work if you have the income to pay your bills and to pay your monthly chapter 13 payment. If you have a new vehicle, and no way to get to work, you cannot perform your obligations under Chapter 13. Our goal is to convince the judge that your vehicle is essential to the successful functioning of your chapter 13 plan.
How Long Will It Take To Get My Vehicle Back?
In many cases, we will be able to get your vehicle back within a matter of days. Our attorneys have established positive relationships with many of the lawyers representing vehicle finance companies, and we can often negotiate a return of your vehicle on a voluntary basis. If you have filed bankruptcy before, however, or if we are dealing with a “buy here/pay here” vehicle lender, we may actually have to take your case before the judge.
If we have to go to court, we may not be able to get in front of a judge for two to three weeks. Bankruptcy court calendars are crowded and the law says that we have to give the lender and its representative sufficient notice. You can help speed up the process by providing us with a copy of your car insurance declarations page and by fulfilling your financial obligations under your Chapter 13 plan.
We also find the identity of the lender can make a difference. Large vehicle finance companies who frequently deal with bankruptcy issues often have set policies for returning vehicles once a Chapter 13 is filed. By contrast, however, smaller lenders and “buy here/pay here” finance companies tend to be less cooperative.
Will I be Responsible for Repossession Costs and Storage Fees?
As you might imagine, vehicle finance companies will try to get you to pay repossession costs and storage fees. If you have the money, and the amount at issue is $100 or $200, we may decide that it makes sense to pay these fees in exchange for getting your vehicle back quickly, and avoiding the risk of going to court. However, if the lender is demanding $500 or $600 of fees and costs, it probably makes sense to take our chances in court.
Often we can negotiate with a lender to include repossession costs and storage fees as part of the lender’s proof of claim. This means that the cost of repossession be paid as part of your chapter 13 plan. Every case is different, and we will do our best to advise you about the most appropriate strategy in your particular circumstances.
What Can I Do About Damage to My Vehicle or
Missing Personal Possessions After I Get My Car Back?
If you notice significant damage to your vehicle that was caused by the repossession company, or if your personal possessions are missing from your car, we do have the right to go back before the bankruptcy judge to ask for damages. As you might imagine, however, you will need to have proof of these damages in the form of pictures, receipts, and witness testimony.
You should contact us as soon as possible after you notice that there’s a problem so that we can make every effort to resolve this issue.
What Can I Do if My Truck Was Repossessed Three Months Ago – Is it Too Late?
If your vehicle was picked up to three months ago, and you did not respond to any “10 day letter”, there’s a good chance that your vehicle has been sold at an auto auction. Georgia law requires lenders to provide vehicle owners with a short, 10 day, period of redemption following repossession. Assuming that the lender follows the procedures set out for notice under Georgia law, then title to your vehicle passes to a new owner at the time of the auction sale.
Occasionally, a lender fails to exercise its rights in a timely manner and we still may be able to recover your vehicle even if several weeks or months have passed since repossession. Time is definitely of the essence when it comes to repossessions, so we urge you to contact us sooner rather than later if your vehicle has been repossessed.
You can expect nothing positive following a repossession. If you do not take quick action, you will lose your vehicle. Eventually, the lender will sue you for a repossession deficiency. Preserve all your options by calling Ginsberg Law Offices immediately at 404-482-2529 if you have experienced a repossession.
