If your Georgia bankruptcy case has been discharged, none of your creditors can ever come after you. Every single unsecured creditor that you have listed in your case is barred from ever making any attempt to collect from you again. If they do, they can be held liable by the Georgia Bankruptcy Court for violating the discharge order.
However, if your case is dismissed, the unsecured creditor that would have been wiped out had you completed your case will be able to pursue collection efforts against you. Some people call this type of debt “zombie” debt or “resurrected” debt. Basically, when an order of dismissal has been granted by the court, the creditor is put back the same position as they were before the case was filed. As a result, they can sue you and try to garnish your wages.
You never know when a creditor might pursue their rights against you when your case is dismissed. Some Georgia car creditors with sharp attorneys have been known to repossess cars the day after order of dismissal of the Chapter 13 case was entered on the court docket. Mortgage companies in Georgia have also been known to restart foreclosure proceedings in Georgia as soon as they can after a dismissal of a case has been granted.
In contrast, some unsecured creditors may never pursue you in Georgia after the Chapter 13 case is dismissed. Collection companies are the unsecured creditors who are most likely to pursue a person who has had a case dismissed. When a case is dismissed, the Georgia Bankruptcy Court will mail a notice of dismissal to every creditor listed in the case. I wonder how many creditors never open mail received from the bankruptcy court?
I get calls every week from people in Dallas, Dalton, Cartersville, Calhoun, Hiram and Rome Georgia who had a Chapter 13 bankruptcy case dismissed a few years ago but now the creditors have finally started to pursue them again.
If your case has been recently dismissed, you need to meet with your Georgia bankruptcy attorney as soon as you can so that they can review your petition with you. Your bankruptcy attorney will be able to advise you on the pros and cons of refiling a Chapter 13 bankruptcy case in Georgia.
3. How much does it cost to file?