How Can I Stop a Lawsuit From a Creditor in Georgia?

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.

Garnished Wages

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.

Can I Keep My Car If I File For Bankruptcy In Georgia?

If you are thinking about filing for bankruptcy in Georgia, we know you have a few questions. One of the questions we hear most often is “what will happen with my car loan?” If you do not own your car outright will you lose it? Can it be left out of the bankruptcy?

Bankruptcy Can Help You Keep Your Car

If you’re filing under Chapter 13 bankruptcy, you’ll be able to keep your car as long as you keep making your Chapter 13 plan payments and otherwise comply with your Chapter 13 plan. Under Chapter 7, whether you keep your car will depend on your ability to make payments. In Chapter 7 bankruptcy, your attorney can file a “Statement of Intention” indicating whether you want to keep or surrender the vehicle. If you cannot afford the monthly payments on your car loan, then you may consider surrendering the car. The auto loan balance will be fully discharged in your Chapter 7 bankruptcy.

King & King has been helping people in Georgia gain a fresh start for over 40 years, and we understand everyone's financial circumstances are unique.  To find out what bankruptcy will actually mean to you, contact King & King today to schedule a free initial consultation at 404-524-6400.