Stop Vehicle Repossession in Georgia | Cherney Law Firm
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Falling behind on car payments in Georgia can quickly lead to vehicle repossession. Many drivers worry about losing their primary mode of transportation and wonder what legal rights or remedies are available to keep their car.
This guide outlines how repossession works under Georgia law and what steps you can take to stop vehicle repossession in Georgia.
What Are the Vehicle Repossession Laws in Georgia?
In Georgia, vehicle repossession is legal when a borrower defaults on a car loan or lease agreement. When a car is financed, the lender holds the vehicle’s title until the loan is fully repaid. If the borrower misses payments or defaults, the lender has the right to repossess the vehicle without prior notice.
When a borrower takes out a car loan or leases a car, they sign a loan agreement (promissory note) to pay back the loan in installments. During this period, the lending company actually owns the title to the car, not the borrower.
If, at any time during the agreed payment period, the borrower defaults on the loan or falls behind on payments, the lender has the right to take the car back. This is called “vehicle repossession,” and it is perfectly legal in Georgia under OCGA § 10-1-36.
Georgia repossession laws are designed to secure the rights of both parties during this transaction.
Technically, when you are even one day late with your car payments, you are in default on your loan agreement. With that being said, it is very risky to go beyond one month of default on your car note. Even if you are within one month, it is very important to communicate with your lender or car creditor.
In Georgia, they can go on to your property to repossess your vehicle as long as they don’t breach the peace. They are not allowed to take your car from inside your garage, but if it is sitting on your driveway, they have the right to do it.
According to the Legal Information Institute, “breach of peace” refers to disorderly conduct or creating a public disturbance, usually involving unnecessary or distracting noise. Merely insulting another, or causing annoyance, is not a breach of the peace.
How to Stop Vehicle Repossession in Georgia
Georgia law gives lenders the right to repossess your car the moment you miss a payment — no court order needed. This is called self-help repossession, and it can happen fast. A tow truck can take your vehicle from your driveway or a parking lot with little warning.
The good news: you have options to stop it before it happens — or sometimes even after.
Filing for bankruptcy is one of the most effective tools available. The moment you file, an automatic stay goes into effect. This is a federal court order. It halts most collection actions right away, including repossession. If the lender has already taken your car but has not yet sold it, the automatic stay may require them to return it.
Two types of bankruptcy can help:
Chapter 7: Filing for Chapter 7 bankruptcy may allow you to keep your car if you are current on your payments or can quickly catch up. You may also be able to reaffirm the loan — agreeing to keep paying under the original terms.
Chapter 13: Filing for Chapter 13 bankruptcy lets you catch up on missed payments through a court-approved repayment plan, often spanning three to five years. This can be a strong option if you have fallen behind but have a steady income.
Outside of bankruptcy, you may be able to negotiate directly with your lender to bring the loan current or work out a modified payment plan. But lenders are not required to agree, and time matters. The sooner you act, the more options you keep open.
What Happens When Your Car Gets Repossessed?
After your car has been repossessed in Georgia, the lender will notify you that you have 10 days to pay off the loan and repo fees in full. This includes any associated costs incurred to repossess the vehicle, such as towing, storage, and transport fees.
Once that period has ended, the lender will usually sell the vehicle through an auction in a commercially reasonable manner.
It is important to note that most of the time, the lender does not receive the full amount that was owed on the vehicle. This could be thousands of dollars less than what you owed on your loan.
The difference between what you owed on a loan and what the lender sold it for is called the deficiency amount. Your lender will expect you to pay the deficiency balance. They can legally sue you for it during the repossession process.
Furthermore, the repossession will appear on your credit report for 7 years, and if your creditor sues for a deficiency judgment and is successful, that will also appear on your credit report.
Voluntary Repossession of a Vehicle in Georgia
Surrendering your car with a volunteer repossession in Georgia is an option if you know that you can no longer afford the payments. It can save you a lot of hassle. It can also reduce some stress, but besides that, there are still negative impacts.
Handing over your keys will still negatively affect your credit report because you will have defaulted on your loan contract with your lender. It is slightly better because it will appear on your credit report as a “voluntary surrender” rather than a “repossession,” but it will also remain there for 7 years.
How Stopping Repossession Works in Georgia
Filing for bankruptcy in Georgia can stop a repossession — sometimes within hours.
Here is what the process looks like, step by step.
Step 1: Contact a Bankruptcy Attorney
This is your first move. You gather basic financial information — income, debts, assets, and vehicle details. The attorney reviews your situation and tells you which chapter fits best.
Step 2: Choose Chapter 7 or Chapter 13
Both can stop repossession. The right one depends on your income and goals.
Chapter 7 wipes out most unsecured debt fast. Works best if your income is low. May not be able to keep the car long-term unless you reaffirm the loan. Chapter 13 sets up a repayment plan over three to five years. Let’s you catch up on missed payments. Often, the better choice is to keep the vehicle.
Step 3: Your Attorney Files the Bankruptcy Petition
The filing is filed with the U.S. Bankruptcy Court. Georgia has two federal bankruptcy districts — the Northern District and the Southern District. Most Metro Atlanta cases go through the Northern District in Atlanta.
The moment your case is filed, the automatic stay takes effect. The automatic stay is a federal court order. It is designed to pause most collection actions. Your lender cannot repossess the car while the stay is in place.
Step 4: Your Attorney Notifies the Lender
If the lender is unaware of the filing, they may still attempt to collect. Your attorney sends notice fast to prevent any action before the stay reaches them.
Step 5: Meeting of Creditors
The court schedules a Meeting of Creditors. This typically happens 20 to 40 days after filing. You attend a short meeting with a court-appointed trustee. Creditors may attend, but rarely do. The meeting usually lasts 10 to 15 minutes.
Step 6: Vehicle Debt
You handle the vehicle debt under your chosen plan. In a Chapter 13 case, your repayment plan shows how you will catch up on missed payments and keep the car. In a Chapter 7 case, you decide whether to reaffirm the loan, redeem the vehicle, or surrender it.
Step 7: Plan Confirmation or Discharge
The court then confirms your plan or discharges your debt. Chapter 13 confirmation usually takes 45 to 90 days after filing. Chapter 7 cases often close in three to five months. Once the court acts, your debt obligations are resolved under the terms set.
One timing note matters here. If your lender has already repossessed the vehicle before you file, the stay may not automatically return it. Act before the repossession happens.
A skilled bankruptcy attorney can help you along the way.
When to Talk to an Attorney About Repossession
If your lender has threatened to take your car — or already has — speaking with a local Georgia bankruptcy attorney can help you understand your options. Cherney Law Firm, LLC works with people across Metro Atlanta and Marietta who need to stop vehicle repossession in Georgia before it's too late.
A quick conversation may reveal that filing for bankruptcy could protect your vehicle and give you a path forward.
Contact us and schedule a free initial consultation.
Frequently Asked Questions
Repossession happens when a lender takes back property, like a car, after missed payments, often without notice.