When creditors make unreasonable payment demands and/or threaten your family, you should at least consider filing bankruptcy. A voluntary bankruptcy petition is the only way for your family to get a fresh start away from debt and delinquency. 

Chapter 13 gives families up to five years to gradually erase past-due mortgage payments and other secured debt delinquency. Since the Automatic Stay usually remains in effect the entire time, creditors must accept the debtor’s income-based repayments. Furthermore, Chapter 13 discharges (forgives) medical bills, credit cards, and most other unsecured debts.

A good Athens, GA bankruptcy lawyer helps debtors maximize their fresh start and rebuild their credit rating after the case ends. Furthermore, an attorney is with you all the way during this legal proceeding. So, an Athens, GA bankruptcy lawyer might cost more than some filing alternatives, but the extra investment is well worth the price.

Eviction Proceedings

Exact procedures vary in different jurisdictions. Generally, however, residential and commercial evictions follow three basic steps:

• Notice of Eviction: Those notices which landlords post on doors and purport to give tenants five or ten days to vacate the premises have no legal effect. They are essentially warning shots. They also give the tenant an opportunity to cure the defect without going to court.
• Eviction Hearing: A local Justice of the Peace almost always handles eviction matters. JP trials are essentially like Judge Judy episodes without the cameras. Typically, the judge hears from both sides then issues a decision on the spot.
• Order to Vacate: Sometime after the hearing, the judge signs an order to vacate the premises and delivers it to the sheriff, who then executes the order. At this point, it is normally impossible to work out a settlement.

In 2005, the law changed in this area. For bankruptcy purposes, the point of no return is usually the eviction hearing. Generally, Chapter 13 bankruptcy stops evictions if the landlord has only issued informal notice and scheduled a hearing. Once the judge’s gavel falls, even if the order is not technically signed, an Athens, GA bankruptcy lawyer usually cannot stop an eviction. 

Repossession or Foreclosure

A combination of COVID-19 shutdowns and easy credit during the mid and late 2010s have pushed repossessions and foreclosures to almost record high numbers. As for repossession, some banks observe an informal two or three-month grace period. But legally, they can repossess the collateral after only one missed payment. The foreclosure wheels do not turn as fast, but once they begin rotating, it is almost impossible to stop them without filing bankruptcy.

In Athens, GA, both repossessions and foreclosures are normally non-judicial processes. Since there is typically no judicial oversight, banks are largely free to do as they please. Bankruptcy’s Automatic Stay effectively transforms these proceedings into judicial proceedings. And in bankruptcy court, debtors usually have the edge, instead of creditors. For example, banks can only bypass the Stay in certain limited situations.

Although the repossession or foreclosure hammer might not fall for a few months, do not wait that long to reach out to an Athens, GA bankruptcy lawyer. Typically, these adverse actions are relatively easy to stop with a bankruptcy petition. However, they are quite difficult to undo, bankruptcy or not.

Creditor Harassment and Athens, GA Bankruptcy Lawyers

The unsecured debt collection process is a mixture of non-judicial and judicial proceedings. Creditors can sell accounts to aggressive debt-buyers at will. Because the Supreme Court has watered down the Fair Debt Collection Practices Act, debt-buyers operate with almost no restrictions. The next step is usually a judgement, a lien, and/or wage garnishment. Most creditors must obtain judicial permission to use these tools.

Bankruptcy stops both non-judicial and judicial collection activities. If you cannot take the letters, threats, and phone calls anymore, it’s best to file bankruptcy. On the judicial side, once a creditor files a suit, it is almost definitely time to file bankruptcy. Payment is usually the only defense, so if you have not paid, most judges quickly authorize whatever the creditor wants to do.

As mentioned, Chapter 13 gives debtors the option of paying unsecured debts over time or discharging them. Some restrictions apply in this area. As for leases and secured property, like a home, if the debtor wants to continue living there, the debtor must catch up on past-due payments before the protected repayment period ends.

The Process of Filing for Bankruptcy in Athens, GA: What You Need to Know

An attorney can help you in various ways when you’re planning on filing for bankruptcy in Georgia. For example, a lawyer can walk you through the process. It generally involves the following key steps:

• Reviewing your financial situation with an expert to determine whether filing for bankruptcy is right for you, as well as to determine which type of bankruptcy you should file for;
• Completing a credit counseling course, which is usually required in order to help those filing for bankruptcy learn how they can avoid getting into difficult financial situations in the future;
• Completing various forms, which will be easier when you have an attorney on your side to help you avoid any inaccuracies;
• If you are filing for Chapter 13 bankruptcy, calculating how much you will pay to ensure you repay your debts within the timeframe established under the law;
• Assignment of a trustee to oversee your case;
• Completing your confirmation hearing;
• Taking and successfully finishing a debtor education course, which is another common bankruptcy requirement designed to minimize your odds of falling behind on future debts;
• Consistently making payments.

This can all seem very overwhelming. However, it doesn’t have to be. Many people successfully leverage bankruptcy to give themselves a fresh financial start every year. There’s no reason you can’t do the same. Just remember that handling this process will be much easier if you enlist the help of a qualified professional.

Preparing for Bankruptcy: Tips to Keep in Mind

Although none of this is meant to worry you, there’s no denying that when you file for bankruptcy, you will likely need to make certain lifestyle changes until your debts are paid off. If you don’t make these changes properly, you may fall behind on your payments, undoing all the work you did when filing for bankruptcy in the first place.

Thus, it’s wise to prepare ahead of time. Ways you can do so include the following:

• If you have children or other such dependents, having an honest conversation with them about the circumstances so that they understand what to expect;
• Learning to set a realistic budget, as failure to do so may be the reason you need to file for bankruptcy now;
• Exercising discipline to ensure you’re making minimal use of credit, as it’s important to only use credit when you’re absolutely certain you’ll be able to pay off the balance when you need to;
• Learning to set a schedule for paying bills to ensure you don’t fall behind on payments simply as a result of forgetting to make them;

Additionally, it’s important to realize that aside from certain people who are directly involved in your life, such as your children and spouse, you typically don’t need to tell anyone if you plan on filing for bankruptcy. Many people who are reluctant to file for bankruptcy even though they could benefit from doing so are hesitant because they are embarrassed.

Don’t let this prevent you from taking advantage of the way filing for bankruptcy could improve your financial life in the long run. While you may feel embarrassed or guilty about your current circumstances, you must remember that people from virtually all walks of life fall behind on mortgage payments and other such bills for a number of reasons. What’s most critical right now is that you take responsible steps to address your struggles.

Thus, one way you can prepare for life after filing for bankruptcy is to remind yourself that you don’t need to tell most of your friends and family about your decision. Consistently reminding yourself of this fact can make the process of filing for bankruptcy much less stressful than it may seem.

How a Bankruptcy Attorney Helps

Along with helping you complete the process of filing for bankruptcy, an attorney can assist you in the following critical ways:

• Providing advice to minimize the chances that you’ll make mistakes that can be harmful during bankruptcy;
• Helping you gather documentation of your income to ensure the amount you must pay during bankruptcy is appropriate based on your means;
• If necessary, responding to and handling creditors who may violate the Automatic Stay;
• If your financial circumstances change after you file for Chapter 13 bankruptcy, potentially working with you and all other relevant parties to modify your repayment plan;
• Honestly addressing your various concerns.

Don’t underestimate the importance of that last point. Again, you may not need to worry as much as you are about filing for bankruptcy, but it’s understandable if you do have fears, doubts, and questions. Your attorney can help you cope with these feelings by answering your questions honestly and thoroughly, giving you the confidence you need to manage this experience.

Reach out to a Reputed Athens, GA Bankruptcy Attorney Today

When adverse action is too intense, it is time to file bankruptcy. For a free consultation with an experienced Athens, GA bankruptcy lawyer, contact Morgan & Morgan, Attorneys at Law, P.C. at (706) 843-2905. Convenient payment plans are available.

Originally published October 24, 2020 and updated on October 4, 2021.

Christopher Ross Morgan

Christopher Ross Morgan

Christopher Ross Morgan focuses on bankruptcy cases, specifically Chapter 7 and Chapter 13 cases. Christopher also takes on Disability and Workers’ Compensation cases. As one of the most accomplished Chapter 7 and Chapter 13 attorneys in Athens, Georgia, he has fought cases through jury trials and argued cases in front of the U.S. District Court, Northern and Middle District of Georgia.