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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. Equally important is whether you are making payments on the car and can continue to make those payments.

You can keep your car when you file for Chapter 7 bankruptcy in Georgia. The state allows you to exempt up to $5,000 for your car as long as the equity in your vehicle is less than that amount. You can also protect your car by applying any unused wildcard exemption which covers any property you own.

Protecting your car by filing Chapter 7

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

If the equity in your vehicle falls under the $5,000 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 will sell your vehicle to settle your debts.

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.

How Georgia’ wildcard exemption helps to protect your car

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.

Shielding multiple vehicles

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


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