If you have excessive debts that you are unable to pay, then filing for bankruptcy protection may be the best solution for you to stop your creditors from getting a judgment against you or garnishing your wages. Filing for bankruptcy protection can stop wage garnishments for most debts except non-dischargeable debts like past due child support or spousal support payments or student loan debt. Filing for bankruptcy protection will automatically stop your wage garnishment.

Chapter 7 or Chapter 13

Making a decision to file for bankruptcy is a complicated one and should be discussed with a Georgia bankruptcy attorney. Depending on your financial situation, you will need to decide which bankruptcy chapter to file under for protection.  Considerations must be made depending upon the amount of debt owed and the assets you own. Individuals will want to choose between filing under Chapter 7 or Chapter 13.

Chapter 7 is a complete liquidation. When you file a Chapter 7, your assets may be sold, excluding any exempted assets, to pay off your existing debts. All remaining unsecured debts are discharged by the Bankruptcy Court. Chapter 7 is good option if you don’t have very many assets, and you want to start all over again clean without any debts.

If you do have substantial assets, then filing under Chapter 13 is a better option for you. When you file under Chapter 13, you get to keep all your assets because you are reorganizing your debts by entering into a Court-approved reduced debt repayment plan. The plan must be completed over a three to five year period. After the plan is completed, the Court will discharge your remaining unsecured debts. If you default on your payments, your secured creditors could repossess your property. So if you enter into a mortgage modification with your lender, and default, your lender could repossess your home.

 Attorney Help

A Georgia bankruptcy attorney is experienced in both Georgia and federal bankruptcy laws and can explain the bankruptcy procedure to you. The attorney can review your financial situation and advise you of all your options, legal rights and remedies. The attorney will be able to prepare the bankruptcy petition and all other necessary documents in connection with filing for bankruptcy and stopping any wage garnishment you are facing. A Georgia bankruptcy will also represent you in Court at all bankruptcy hearings and negotiate with your creditors on your behalf.

Since bankruptcy laws can be quite complex, it is highly recommended that you hire a bankruptcy to represent you in your bankruptcy proceeding to make sure that your interests are properly protected.   If you would like to discuss your bankruptcy options contact my office immediately.

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