Search Site
Menu
Can You Keep Your Car if You File for Bankruptcy in Georgia?

Your ability to keep your vehicle while filing for Chapter 7 bankruptcy in Georgia depends on whether you are covered under the state’s motor vehicle exemption. If the equity in your vehicle falls under the car exemption amount, then the bankruptcy trustee cannot sell it to help pay off your debts. However, if the equity in your vehicle is significantly more than the exemption amount, it is likely that the trustee selling your vehicle will settle your debts. Georgia law allows you to exempt up to $5,000 in vehicle equity in your bankruptcy filing.

It’s important to understand that if your vehicle is safe from the trustee, the lender of your car loan could still  repossess it during or after the bankruptcy proceedings if the loan payments aren’t current.

If your vehicle equity amount is more than $5,000, there is still a chance you may cover the remaining equity by using Georgia’s wildcard exemption. This may be used for any property you own. The wildcard exemption is $1200, plus any unused portion of your homestead exemption up to $10,000. In other words, if you did not use your homestead exemption, you have an extra $11,200 you may add to your existing $5,000 vehicle exemption.

The State of Georgia allows married couples to double their exemption amounts for vehicles that are jointly owned, which may help you to keep possession of your car. Therefore, the motor vehicle exemption in the state for married couples is $10,000 rather than $5,000, and the wildcard exemption — with unused money from a homestead exemption — could be as much as $$22,400.

If you owe money on multiple vehicles, you may apply these exemptions to all vehicle debts, as long as the total amount allowed under the exemptions is not exceeded. The make and model of vehicle is not relevant under state law.

For more information on motor vehicle exemptions, meet with an experienced Georgia bankruptcy attorney at Jeff Field & Associates. Call us at 404-381-1278 or contact us online


Related Posts:


 

Leave a Reply

Your email address will not be published. Required fields are marked *

Videos
Our Attorneys
Client Reviews
  • google
    5.0/5.0

    Higlhy professional firm. Jeff Field and Associates did whatever they said they would do. Very well versed in this type of law and their customer service is great. I highly recommend them.

    Read more

    Roy Naturman

  • google
    5.0/5.0

    I would definitely recommend Jeff to anyone filing for bankruptcy. He was very nice. He lets you know what's going throughout the process. Thank you Jeff. Athens, Ga.

    Read more

    Anita Craig

  • google
    5.0/5.0

    I am so glad I chose this firm for my bankruptcy journey. Everyone there is so friendly and helpful and made me feel so much better about the entire process. They made everything so quick and simple and now I can have a fresh start. I would absolutel...

    Read more

    Andrea C

  • google
    5.0/5.0

    Jeff Field and staff provided excellent services. The team was always there to answer questions and made the process, during this difficult time, simple and uncomplicated. He is a real professional and true credit to the law field.

    Read more

    Satisfied Customer

  • yellowpages
    5.0/5.0

    Jeff Field and staff provided excellent services. The team was always there to answer questions, responding to every email and call that I had questions and concerns about and I got answers, making this process, during a difficult time, straight forw...

    Read more

    Satisfied C.

See all reviews
Contact us

Please fill out the form below and one of our attorneys will contact you.

Quick Contact Form