Legal Question in Credit and Debt Law in Georgia

Yes.

I beg to slightly differ from my colleague. The answer is a qualified yes depending on what you want to do and your circumstances.

First, is this your debt? Do you have at least $10,000 in debts that are dischargeable under the bankruptcy code? Are you able to file under chapter 7 of the bankruptcy code? If so, then you may want to speak to a bankruptcy attorney.

If the answer is that you are unable to file bankruptcy for any reason, then how much do you owe? Is the suit in magistrate's court or state or superior court? Do you have the funds to settle the debt in a lump sum? Most creditors, on average, will accept between 40% and 80% of the total amount sought in the complaint plus costs, attorney fees and pre-judgment interest if applicable. The amounts can vary and it depends on who is suing you (junk debt buyer versus original creditor) and the law firm (Fred Hanna? Zwicker? Zakheim & LaVrar? Harold Scherr? Greene & Cooper? Someone else?)

If you do not have the funds to settle now, when do you anticipate having the funds? If not for awhile, are you a W2 employee and work for someone else? What assets do you own?

If this is your debt and you have no defenses (like the statute of limitations which is 6 years in GA), the creditor will recover a judgment against you if you do nothing. If you answer but have no defenses, the creditor is still going to recover a judgment against you, although there may be some value in delaying the judgment as long as possible. Once a judgment is entered and it has become final (judgments become final 30 days after entry), then the creditor can get what it is called a FiFa for short (it stands for fieri facias which is Latin - it is a writ of execution). With the writ, the creditor can seek to have the sheriff seize any property that you own free and clear, like land or a car. The judgment will be a lien on any real or personal property that you own even if the sheriff cannot seize it (it depends on how it is titled and whether it is still being financed, like a car). The judgment also enables the creditor to garnish your wages if you are W2 employee. The creditor can garnish up to 25% of your disposable (net) pay, but the amount can vary depending on how much you earn and if any existing garnishments are in place.

If you have no assets and only earn exempt income (like Social Security) then maybe you do nothing at all for now.

So in answer to your question of whether you need a lawyer, the answer is it depends. You first need to figure out whether it makes sense to litigate or not and whether you wish to file bankruptcy. If you are not sure which way to go, then you definitely need to talk to a lawyer. If you are leaning towards bankruptcy, then consult a bankruptcy attorney. If bankruptcy is not something you want to do, then speak to Attorney Ashman or a local attorney in your area if you think litigation may be the way to go. If you are interested in resolving the debt in a non-litigation, non-bankruptcy context, I would be happy to review your situation with you. Please contact me at [email protected] if interested.