Georgia Law on Voluntary Car Repo

When you get behind on your car payments, the lender may choose to repossess the vehicle. The lender can hire someone to come and get the car, or you can turn it in to the lender. Voluntary repossession has benefits to the borrower.

Repossession

In Georgia, under the Uniform Commercial Code, if a borrower misses payments, a lender can repossess the car that serves as collateral for a loan.

Voluntary Repossession

Under the Georgia Commercial Code, the lender has the right to hire someone to come and get the car. The borrower can also choose to return the car herself. Voluntary repossession costs the lender much less than forced repossession.

Deficiency

After repossessing the car, the lender adds the repossession costs to the balance of the loan. Then the lender sells the car and applies the proceeds to the borrower's current debt. Title 11, Section 11-9-607 of the Georgia Commercial Code gives the lender the right to sue the borrower for any deficiency. Because a voluntary repossession is cheaper, the deficiency will be smaller.

References

• One CLE: Georgia Commercial Code - Title 11, Section 11-9-607
• WTOC 11: What to Do if You Face Vehicle Repossession