If you have received a letter about a debt collection lawsuit in Georgia, do not ignore it. A lawsuit will not go away if you don’t do anything, and typically will result in a default judgment against you. If the creditor wins the lawsuit, without much notice to you, there are actions they can take to recover the money you owe them.
Once a debt collector wins the lawsuit, they can garnish your wages. When a garnishment order is sent to your employer, you can expect them to withhold a portion of your wages and send the money directly to your creditor. A wage garnishment is a devastating way to pay back a debt, and can quickly send your life into a financial spiral.
Your Bank Account Can be Frozen
The debt collector can also send the judgment to your bank to “freeze” your bank account. If your account is frozen, there are actions you can take to defend yourself. An experienced bankruptcy attorney can explain to you the next steps on how to “unfreeze” the account and keep your money.
Bankruptcy May Be An Option
If you cannot afford to settle or fight the debt collector in court, a bankruptcy filing may be the best for you. Chapter 7 bankruptcy can eliminate most debts and provide you with a “fresh start.” Once a petition is filed with the Bankruptcy Court, any debt collection lawsuit (garnishment or frozen account) will be stayed. To find out if bankruptcy is right for you, call the offices of King & King for a free consultation today at 404-524-6400.