When you file for bankruptcy, one of the many things you will be able to accomplish is an automatic stay on some legal actions. While stopping collections with the automatic stay in Georgia is possible through bankruptcy, it is important to keep in mind that you will not be able to stop all legal proceedings nor will you be able to hold off all creditors. It is important that you talk with your bankruptcy attorney about what you will be able to include in the automatic stay and what you will not so you will get a full scope of what you are facing.
What Automatic Stays Can Prevent
Stopping collections with the automatic stay in Georgia is possible for many different kinds of proceedings. Here is a list of which ones are included and to what extent:
- Foreclosure – When you are facing foreclosure, it is possible to get relief through either Chapter 7 or Chapter 13. While they will both work to offer temporary relief, Chapter 13 is the preferred route for those looking to hold on to their property.
- Utility Disconnections – You will have 20 days from the time you file for bankruptcy to get something worked out with the utility company. The old debt is something which can be included in the bankruptcy which makes it possible for you to resume with normal payments if this is accepted by the bankruptcy court.
- Collection for child support including overpayments – While you will not be able to include this in your bankruptcy, you will be able to get a temporary break from the payment while you figure out your next move. This is just the thing many people need to restart.
- Eviction – In most cases, simply filing for bankruptcy will not stop an eviction because the landlord will easily be able to ask for a lift of the stay which will be granted. In some cases the stay will never even be issued if it is regarded that you are abusing your rights on the property.
- Multiple Wage Garnishments – Garnishment will be stopped immediately. In most cases you will be able to use the to make sure that the garnishment will not come back.
What Cannot be Stopped by the Automatic Stay
While stopping collections with the automatic stay in Georgia is possible, it does not stop everything. Here is a list of what will not be stopped and why:
- Criminal Proceedings – It is expected that you should not be arrested and charged with fines. If you are, you should not be allowed any compensation as it will only encourage people to commit crime
- Child Support of Alimony – When child support and alimony have been assigned it is because there is a need. The court cannot in good conscience deny that need.
- Tax Proceedings – Your inability to pay your debts does not excuse you from the taxes you owe from income received. You will have to pay all taxes for the previous year before you will even be allowed to file.
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- Dealing with Collections FAQ
- Georgia Chapter 7 Bankruptcy Process Overview and Highlights
- How Declaring Bankruptcy in Georgia Can Affect Your Mortgage
- When Filing Chapter 7 Bankruptcy Makes Sense
- Difference between Chapter 7 and 13 Bankruptcy in Atlanta GA
- Release of Bankruptcy Information in North Georgia
- What Bankruptcy Can Do
- How Long Can I Live in My Home after Filing Bankruptcy?
- Getting a Mortgage after Filing Bankruptcy in Atlanta GA
- Chapter 7 Bankruptcy Overview
