The decision to file for Chapter 7 bankruptcy is not easy – it will have a negative impact on your credit in exchange for a fresh financial start. However, if you have decided it is inevitable to declare bankruptcy in Georgia, the next important decision to make is when to file. In some situations, filing your bankruptcy petition may be the wisest move, protect more of your assets, and give you peace of mind. We will explore factors and situations to consider when determining the timing of your bankruptcy.
Filing Bankruptcy As Soon As Possible
Falling behind on bills is stressful enough even before you factor in unpleasant creditor phone calls and increasingly drastic and distressing collection techniques such as repossession, foreclosure, and lawsuits seeking wage garnishment or bank levies. Filing a bankruptcy petition as soon as possible in Georgia can stop you from losing money or property needlessly in several ways:
- Halts Legal Proceedings Against You
Filing bankruptcy in Georgia can stop the lawsuit of a creditor that has sued you to collect on your debt – if the case has not already resulted in a court-issued judgment against you. If that has occurred, creditors may have greater legal rights to take your property.
- Prevents Bank Levies and Garnishment of Wages
Two unpleasant ways creditors collect on your debt using the legal system are wage garnishment – requiring you employer to deduct money from your paychecks to satisfy your debts, and bank levies – an order forcing a bank to transfer money from your accounts for the same reason.
If a creditor sues for a judgment seeking wage garnishment or a levy of your bank accounts, filing a bankruptcy prior to a court-issued judgment in their favor will prevent these consequences from occurring and stop the legal proceedings from continuing. The bankruptcy will also wipe out these existing debts.
- Delaying Eviction and Foreclosure
Filing your Chapter 7 bankruptcy petition in Georgia will stop evictions if the landlord or creditor has not yet obtained a judgment against a debtor. Filing will also halt foreclosure proceedings, allowing you extra time in your residence. Unfortunately, for both foreclosure and evictions, because Chapter 7 was not designed for you to keep your home, the relief will most likely be temporary.
Find Out if a Chapter 7 Georgia Bankruptcy Is Best for You Right Now
Nobody ever looks forward to filing bankruptcy, but in some circumstances deciding to do so sooner rather than later is the best decision. To learn whether an early Chapter 7 bankruptcy is right for you, contact the experienced Georgia bankruptcy attorneys at The Ballard Law Group. We offer a free bankruptcy consultation to help you understand how the timing of your bankruptcy can work in your favor. Contact us today by calling 404-220-9906, booking an appointment online on our contact page, or chatting with one of our available representatives.