Should I File Bankruptcy Over One Debt?
Every now and then, I will have a potential client that walks into my office with only one creditor problem.
My frustrated potential bankruptcy client will say, “I cannot believe I am going to have to file bankruptcy because of this one nasty creditor. Is there any other way out of this tangled mess?”
Is there any other way out of this debt?
The answer to this question is the same answer I give to almost every legal question. It depends.
1. The first question I will ask is how large is the debt? If you are about to be garnished over a small amount of money, it might be better off to get garnished for a short time and avoid bankruptcy altogether.
2. Can you call the attorney who filed the lawsuit against you and see if they are willing to work out a a reasonable repayment plan? If not, they are going to garnish 25 percent of your take home pay.
3. How old is this debt? Is it more than six years old? Has it been more than six years since you have made a payment on this account? If so, this claim may be barred by the Georgia statute of limitations. Furthermore, if the claim is being collected by a third party collector, you may have a slam dunk FDCPA violation counterclaim.
Are you sure there is only one debt problem?
Many times when a client walks into my office thinking they have only one debt issue, they are shocked when we pull a credit report and see how many debt issues really exist in their life. People often think that if they have not heard from a creditor in a few years, the problem is gone. This is not correct. A claim against you can go dormant for a few years and then be sold to a debt collector for pennies. The debt collector then turns around and makes a fortune by collecting the entire debt from you.
The bottom line is that if you have debt issue, you should take advantage of a free consultation and let us review your entire situation together. If bankruptcy is not a good option for you, I am going to tell you along with the reasons why. My other attorneys that work for me will do the same thing. We shoot straight with you.
Give us a call today at 706-295-0030.