Don’t Dip Into Retirment To Pay Unsecured Debt

Hard economic times are still ahead for many in the Atlanta area dealing with job losses and cuts to their incomes. Planning for your financial future is important.

Before you tap into your retirement savings to pay off your debt, you should talk to an experienced Atlanta bankruptcy attorney about the protections available to you in bankruptcy.

Filing bankruptcy may sound scary, but it can protect your retirement savings. Just over $1 million in retirement savings and 401(k) deposits are safe from your creditors in a bankruptcy. Filing bankruptcy can eved stop foreclosure on your home.

If you are struggling to make ends meet, consulting with a bankruptcy lawyer can give you the tools you need to get out of debt and protect your assets for the future.

Filed under: Economic News — Rob @ 10:58 am

Having A Local Bankruptcy Attorney Matters

Although bankruptcy is handled by federal district bankruptcy courts, there are important differences in bankruptcy filings from state to state. 

Bankruptcy filings are governed by the bankruptcy laws of the state in which they are filed.  For this reason, a Georgia bankruptcy will be very different from a California bankruptcy or a Connecticut bankruptcy. 

The most significant area of difference is in the laws pertaining to exemptions.  A bankruptcy in Georgia will allow an individual to protect up to $10,000 of equity in their residence, up to $5,000 in their household goods, and up to $3,500 in motor vehicles. 

If you were filing the same bankruptcy in Rhode Island, you would be able to protect $300,000 in home equity, $12,000 in motor vehicle equity, all clothing, $1,500 worth of tools used in the debtor’s profession and the library of a professional, and one burial plot. 

Those filing for bankruptcy in California would be able to claim homestead exemptions of $75,000 if they are living with other non-owner family members, up to $150,000 if they are older than 65 or disabled and up to $50,000 if the previous statuses do not apply. 

Because bankruptcy varies so much from state to state, it is highly recommended that you contact a qualified Georgia bankruptcy attorney to assist you with the process of filing a bankruptcy in the state of Georgia.  This professional will be knowledgeable in all aspects of bankruptcy law in Georgia and will be able to help you ensure that you protect as much of you assets as possible.

Filed under: Bankruptcy Information — Tags: , , — admin @ 8:25 am

You Can Keep Your Stuff In Chapter 7 Bankruptcy

Often you can file a Chapter 7 bankruptcy in Atlanta, Georgia and still retain your home, car and other significant assets. This will be accomplished by utilizing the rules regarding exempt assets vs. non-exempt assets.

All non-exempt assets must be turned over to the bankruptcy trustee managing your bankruptcy case, while exempt assets are excluded from the bankruptcy filing and are therefore retained by the debtor.

Exempt assets may include furniture, appliances, clothing, and any tools that are used in the debtor’s employment.

The assets that can be considered exempt vary significantly from state to state.  In order to ensure that you fully exercise these property exemptions, it is recommended that you consult a Georgia chapter 7 bankruptcy lawyer.

Other secured assets may be excluded from the bankruptcy if the debtor pays the creditor an amount equal to the value of the property, even if the amount of the debt is more than the value of the item.

Your creditors may object to your Chapter 7 filing.  When this happens, you will often need to negotiate a payment plan with that particular creditor or convert your filing to a Chapter 13 bankruptcy. For this reason, it is highly recommended that you consult a qualified Georgia Chapter 7 bankruptcy attorney.

In a Chapter 7 case, you will be required to attend one brief court hearing.  This is an opportunity for your creditors to file any objections or additional claims related to your case.  If there are no objections, a discharge order will be issued for your debts.

Filed under: Bankruptcy Information — Tags: , , , , , — admin @ 8:26 am

Atlanta Bankruptcy - What is involved?

Bankruptcy is a legal filing that allows a person who is unable to pay their debts to rewrite their financial future.  Bankruptcies are managed by the federal bankruptcy court. 

In Atlanta, bankruptcy is handled by the Bankruptcy Court for the Northern District of Georgia.  If you are considering choosing to file for bankruptcy in the Atlanta area, your first course of action should be to contact an Atlanta bankruptcy attorney. 

This professional can assist you in reviewing your own financial situation and help you determine if filing for bankruptcy is the best decision for you.  A qualified Atlanta bankruptcy lawyer can also discuss which chapter of bankruptcy is best for you to file based on your unique situation and can guide you in every step of the bankruptcy filing process. 

Remember that the U.S. Bankruptcy Court and its officials are prohibited from giving any advice that may be construed as legal advice.  The only person who can offer advice on your bankruptcy filing is a licensed attorney. 

Once you and your representative determine the best course of action in your particular case, they will file a bankruptcy petition on your behalf.  Once this petition is filed, your creditors will be notified of the filing, the case number, the trustee that will oversee your case, the date assigned to the Meeting of Creditors and the deadline they must meet for filing any objections to the debts or debtors identified in your filing. 

Additionally, the creditors will be advised on their options in this case and will receive instructions regarding the process for filing an objection in this case.  If no objections are filed in your case within the time period specified, the court will proceed with the bankruptcy. 

In a chapter 7 bankruptcy, the court will issue a discharge order, non-exempt assets will be liquidated, and their proceeds will be distributed to the appropriate creditors. 

In a chapter 13 case, payments will be made to creditors as outlined in the court-approved payment plan.  Regardless of chapter, once all payments have been made, the bankruptcy case will be closed.

Filed under: Bankruptcy Information — Tags: , , , , — admin @ 9:03 am

Filing Chapter 13 Bankruptcy In Atlanta

If you are looking for a way out from under the crushing weight of your debts, filing a Chapter 13 bankruptcy may be the best option for you.  Chapter 13 bankruptcy provides a fresh start for a debtor by assisting them in developing a plan for the payment of their debts. 

In Atlanta, a Chapter 13 bankruptcy filing requires that the debtor construct and file a plan for the payment of their current debts based on their current income.  The payment plan must last at least 3 years and may last for up to 5 years. 

This plan is filed with the bankruptcy court, which is a federal district court.  In Georgia there are three different bankruptcy district courts:  the Georgia Middle District Court, the Georgia Southern District Court, and the Georgia Northern District Court.  Cases in Atlanta are handled by the Georgia Northern District.

In order to ensure that your payment plan is approved by the Georgia bankruptcy district courts, you should seek out the assistance of a qualified Atlanta Chapter 13 attorney.  This professional has assisted hundreds of individuals in developing payment plans for Atlanta Chapter 13 bankruptcy and knows what the bankruptcy court is looking for in an approved plan. 

As a result of changes made several years ago to the Chapter 13 plan outline, the debtor is required to provide detailed listings of the amounts that creditors will be paid, the interest rates that will apply to these debts, the names of the creditors to be paid, and other very specific information. 

It is difficult for a debtor to design a plan that will be approved without the assistance of a qualified Atlanta bankruptcy lawyer.

Filed under: Bankruptcy Information — Tags: , , — admin @ 9:40 am

Georgia: Center of Banking Crisis?

A story in the Wall Street Journal today says that there is a “storm raging unabated” in Georgia. It points to the fact that the state is home to only four percent of the nation’s banks and 20 percent of the bank failures since August of last year.

According to the article, bankers and lawmakers estimate that 30 more banks in Georgia are at risk of failing.

At fault, according to the article, are the risky real estate loans that the banks financed while fighting for a share of the marketplace. The state had 334 banks at the end of 2008, not counting branches of banks chartered elsewhere like Bank of America or Wells Fargo. That ranks Georgia third in the nation in number of banks.

More bank failures on the horizon may mean more financial woes for the people of Georgia. More personal bankruptcies may be on the way for Atlanta, since most of the bank failures in the state have been centered on the metro area.

Filed under: Economic News — Tags: — Rob @ 8:41 am

Qualifying For Chapter 7 Bankruptcy In Atlanta

If you are looking for a fresh start financially, you may need to consider filing a chapter 7 bankruptcy.  This form of bankruptcy is the most common and may be referred to as a straight or liquidation bankruptcy. 

Once a Chapter 7 bankruptcy is completed, all possible debts are eliminated for the debtor.  In Atlanta, you may only file a Chapter 7 bankruptcy if your household income falls below certain levels.  This limit is equal to the average household income for the state and does account for the size of your family. 

The median income tables are adjusted every six months and are available on the website for the bankruptcy trustee in your area. 

If your income exceeds this value for your family size, you may still be able to qualify for a Chapter 7 bankruptcy filing in Georgia, but you will have to satisfy a secondary qualification, known as a means test. 

The means test is designed to eliminate Chapter 7 bankruptcy as an option for those who have the ability to repay their debts through a Chapter 13 repayment plan. 

Essentially, this test ensures that Chapter 7 bankruptcy is utilized in only the situations where it is necessary and not as a blanket “get out of jail free” card for those who have made poor financial decisions. An Atlanta bankruptcy lawyer can assist you in determining if you qualify for a Chapter 7 filing. 

For the means test, a list of the debtor’s expenses is compiled.  The IRS has assigned a value for each of these expenses.  These allowable expenses are then compared to your gross household income.  If the amount left over is less than $100 each month, you may qualify to file a Chapter 7 bankruptcy in Atlanta even though your income exceeds the average household income for the state.

Filed under: Bankruptcy Information — Tags: , — admin @ 8:26 am

Bankruptcy In Georgia Under The New Bankruptcy Law

Bankruptcy in Georgia is governed by the United States Bankruptcy Code.  These rules for Georgia bankruptcy were significantly altered by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). 

All bankruptcies filed after October 17, 2005 are subject to the provisions of the BAPCPA.  While it is no longer a recent change, these bankruptcy laws are often referred to as the “new” bankruptcy laws. 

The primary aim of these revisions is to make it more difficult to file a chapter 7 bankruptcy and to encourage more filers to choose to file a chapter 13 bankruptcy instead. 

Prior to the passage of this act, debtors could choose to file either chapter 7 or chapter 13 bankruptcy, but once the BAPCPA was passed, debtors seeking to file chapter 7 bankruptcy were required to satisfy specific income and asset requirements. 

To determine if these criteria are met, the BAPCPA requires that the debtor’s monthly income be compared to the median income of the state in which they are filing for bankruptcy.  If the debtor’s income falls below the state’s average, they will automatically qualify to file for a chapter 7 bankruptcy.  If the debtor’s monthly income exceeds this average, a “means test” is applied. 

To further evaluate the debtor’s financial situation, their current monthly income is compared to a list of allowed expenses.  These expenses are based on IRS approved deductions.  These are not the debtor’s actual expenses, but rather averages that the IRS has determined. 

Georgia bankruptcy law has been impacted by the changes that were enacted with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, as filing for bankruptcy is no longer a simple matter of completing a few forms, but instead requires complex formulas and exemptions. 

The best way to successfully navigate the additional requirements of the BAPCPA is by consulting a qualified Georgia bankruptcy attorney.

Filed under: Bankruptcy Information — Tags: , , , , — admin @ 8:55 am

What is required of you before you file bankruptcy in Atlanta?

Since the passage of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), filing for bankruptcy has become a much more complicated process. 

In order to complete a bankruptcy filing, you will now be asked to provide much more information than you would have previously.  Additionally, because these laws were enacted to discourage unnecessary bankruptcy filings, you will now have to fulfill more qualifications in order to file a bankruptcy. 

As a result of these new requirements, it is in your best interest to consult an Atlanta bankruptcy attorney before you make the decision to file for bankruptcy.  A legal professional can help guide you through this complex process as well as assist you in evaluating all of your options for rebuilding your financial life. 

The best place to start is by evaluating your current financial situation.  The 2005 law actually mandates that bankruptcy filers complete a consumer credit counseling course prior to filing their bankruptcy.  The organizations approved to provide this counsel are listed on the U.S. bankruptcy trustee’s Web site. 

The law requires that these courses cost the debtor no more than $50.  The debtor will receive a certificate of completion at the end of this course and should bring this with them to their meeting with their selected Atlanta bankruptcy lawyer.  The certificate will be included in your bankruptcy filing. 

Another step you should take in preparation for your bankruptcy filing is to request copies of your current credit reports.  These reports will show all of your creditors and the amount you owe to each. 

There are three national credit reporting agencies:  Equifax, Experian, and TransUnion.  There are also several Internet sites that will combine the information from the three agencies and provide you with a free report. 

All of this information will help you and your Atlanta bankruptcy lawyer develop a plan that will be best for you while satisfying the more stringent requirements of the BAPCPA.

Filed under: Bankruptcy Information — Tags: , , , — admin @ 9:28 am

Bankruptcy In Atlanta Stops Foreclosure, Repossession

If you are facing mounting bills, constant, harassing calls from collections agencies and fear that you may be facing a home foreclosure or auto repossession, you may be wondering how to file for bankruptcy in Atlanta, Georgia. The first step is to consult with an experienced Atlanta bankruptcy attorney.

The good news is that in many cases, filing for bankruptcy will immediately stop foreclosure, repossession, and credit collections.  This is the result of the “automatic stay” provision, which automatically stops all creditor actions as soon as a bankruptcy has been filed. 

The changes to the bankruptcy law enacted in 2005 limit this provision in the case of second and subsequent bankruptcy filings.  As a result, if you are filing a second chapter 13 bankruptcy case within one year of the dismissal of your first, the automatic stay will only be in effect for 30 days after the filing of the new case. 

If your home is about to be under foreclosure, a chapter 13 bankruptcy filing will stop this process.  Remember that in Atlanta foreclosures take place on the first Tuesday of each month.  If your foreclosure is quickly approaching, you will need to coordinate this timing with the timing of your Atlanta bankruptcy filing. 

A chapter 13 bankruptcy filing also may stop vehicle repossession.  You will be able to verbally notify any repossession agent of your bankruptcy filing and retain your vehicle.  If your vehicle has already been repossessed, you may still be able to recover it as a result of your chapter 13 bankruptcy filing. 

Again, if this is a second or subsequent bankruptcy case, your ability to recover any of your possessions that have already been repossessed is limited. 

The automatic stay created by your bankruptcy filing may also suspend any pending lawsuits which have been filed against you.  This is true regardless of whether you file a chapter 7 or chapter 13 bankruptcy.

Filed under: Bankruptcy Information — Tags: , , , , , — admin @ 9:11 am
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