Collections, Garnishments, and Judgments

Old debts can be stressful to deal with. Debt collectors are invariably rude, intrusive, and demeaning. Lawsuits and judgments might make it seem like a debt will never go away. And in the rare case of a garnishment or execution, a creditor intrudes on one's basic ability to make ends meet.

Bankruptcy forces creditors to get in line, and put an end to debt in sight.

Debt Collections

Simply put, debt collectors stop when a bankruptcy case is filed. If they don't, they get sanctioned for violating the bankruptcy automatic stay.

Lawsuits and Judgments

A bankruptcy discharge can void a judgment. In bankruptcy, one's ability to pay the judgment is evaluated at snapshot of time represented by the bankruptcy case, not over the 10 or more year life a North Carolina judgment. Many times, a bankruptcy case can even eliminate or reduce a judgment lien by a straightforward bankruptcy motion.

Garnishments

Garnishments are fortunately rare in North Carolina. But when garnishments do occur, bankruptcy is one of the most effective ways to stop an on-going garnishment. Sometimes, bankruptcy can even reverse a garnishment and get money back from a creditor.

Bill collectors work hard to keep you thinking about the past. Bankruptcy provides a mechanism to start fresh and move on with one's life.