Can I Keep my car in Bankruptcy?

You may wonder if you file bankruptcy in Georgia whether you can keep your car. Most of the time, you can keep your car in bankruptcy. There are two ways that you can lose your car in bankruptcy.

The first way that you can lose your car is by failing to make timely payments . If you are in a Chapter 7, you have to make timely payments to the car creditor. If you are in a Chapter 13 and your car is included in your Chapter 13 payment, then failure to make timely payments to the trustee can result in the dismissal of your case and ultimately the loss of your car.

The second way that you can lose your car in a bankruptcy case, specifically in a Chapter 7, is if you have unprotected equity in your car. In Georgia, you are allowed up to a $3,500.00 exemption or protection of your vehicle.

Thus, if you own a car that is worth more than $3,500.00 and file Chapter 7, the car can be subject to sale by the bankruptcy attorney in order to recover money to pay back your creditor. Most debtors who file bankruptcy do not have equity in their vehicles, simply because the vehicles are financed. For example, if you own a vehicle that is worth $15,000, but you owe $12,000 on the vehicle, then there is only $3,000 in equity. Thus, you would be able to use your protection/exemption on your car and fully protect it from sale.

If you have any questions about how to ensure you can keep your car in a Georgia bankruptcy case, call the Law Offices of Charles Clapp at 404.585.0040 to schedule a free consultation.

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Charles is absolutely a brilliant attorney! He is a critical thinker and determined problem solver. He is very accessible, even via text. If he is in court, his ability to multi-task, you can feel safe and secure in knowing he is handling any issues or concerns. I entrust him with my future, he is a uniquely talented attorney who always challenges himself to achieve the absolute best outcome for his clients.

Donna

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I was very satisfied with Mr. Clapp services. He is a man of his word and did everything he told me he would. I would highly recommend him.

Shernita

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I came to Mr. Clapp by referral with a complicated case involving both personal and business debts that were out of control. Mr. Clapp evaluated the situation and gave me options that I was not even aware of. He knows his stuff, executed flawlessly, and I have been able to start over. I highly recommend Charles Clapp if you have debt or bankruptcy issues. Listen to his advice, he knows his stuff. I consulted with several other bankruptcy attorneys prior to retaining Mr. Clapp, and they did not have the same breadth of knowledge that Mr. Clapp brought to my case.

Scott

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I selected Charles Clapp to handle my bankruptcy based on his already positive reviews and I am glad that I did! He was very accommodating to my schedule and made my negative life experience positive. I was actually very surprised how easy he made the process. Life happens and it’s great to be represented by someone that understand that!!! Stop your attorney search with Charles Clapp!!!

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