Bankruptcy is a complex but powerful legal tool for businesses and people who are unable to repay their debts on time or in full. It is effective at preventing or defending against a variety of collection actions including bank levies, lawsuits, garnishments, repossessions, foreclosures, and the loss of necessary licenses such as alcohol, business, and driver’s licenses.

Creditors attempt to convince people and businesses that bankruptcy should never be considered because creditors are likely to lose rights and collection options in bankruptcy proceedings. Bankruptcy court is typically the only court where a person or business can use its inability to pay its debts as a legal justification for paying creditors less than they are actually owed or modifying the repayment terms.

The filing of a bankruptcy petition creates an automatic stay or injunction against collection activities, and forces creditors to pursue their claims in bankruptcy court in an orderly, restrained fashion. In some cases, collection activities that occurred 90 days or less before you filed bankruptcy, can be reversed after a bankruptcy case is filed. Creditors would much rather take a debtor’s money and property outside of court or in legal proceedings under state law (which are typically much more favorable to creditors).



Bankruptcy has been used as a legal solution for Donald Trump, the City of Detroit, and other successful businesses, celebrities, and athletes to defend against lawsuits and aggressive, unsympathetic creditors.

Bankruptcy may be a legal option for you or your business if one or more of the following situations apply to you:  

  • Your bank account has been frozen or levied by a Creditor or your Bank.

  • Your paycheck is being garnished or your employer has stated it will be garnished.

  • Your business’ alcohol license has been revoked (or not renewed) because of unpaid taxes or your driver’s license has been revoked because of unpaid debts.

  • Your business has tax debt it cannot repay in full and you need a repayment plan.

  • You have received a proposed notice to levy from the IRS or Georgia Department of Revenue.
  • You have tax liens in your name.

  • You have lost your job or income and have debt you cannot repay.

  • You have more debt than you can repay.
  • The most common reason individuals file bankruptcy is because they have more medical bills than they can repay.

  • You have been sued by one or more creditors. Or, one or more creditors has a judgment you cannot repay.

  • You have a secured creditor who has threatened, or actually, repossessed your business or personal property.

  • Your have received a foreclosure notice for real estate you own.
  • Your vehicle may be repossessed (typically after missing 2-3 payments).