Toccoa, GA Bankruptcy Law Firms & Lawyers

There hasn't been prison for debtors in the U.S. since 1789 when the Constiution was adopted by the 13 Colonies (except for spousal/child support and fines which are different kinds of debts). I would laugh when the debt collectors tell you that you are going to jail for unpaid bills. It is a violatio of federal and California fair debt collection practices laws also.

You can sell a home prior to filing bankruptcy, many people seek to sell their home through normal means, short sales, and even deed in-lieu of foreclosure. The sale of any property, real or personal, prior to filing bankruptcy must be conducted in an arms-length transaction; this involves a third-party and usually at a fair market value for the property being sold. You may have an issue though. If your ex-wife is in the home and you are bound by a divorce decree, in some form or another, to ensure you do nothing to impede her ability to live in the home, then you cannot sell the home without her consent. If she is on the deed or mortgage, you will not be able to complete a valid transaction to sell the home without her written consent. If you are having to pay the mortgage on the home and a divorce decree is in place that requires you to maintain those payments, you can still file for bankruptcy, but that debt will not be dischargeable.

Settling an automobile deficiency while in garnishment may be possible depending on the creditors guidelines. Another option might be to contest the underlying judgment if you were not served properly and the judgment was entered within the past year.