Understanding Exemptions In An Atlanta Bankruptcy

Georgia bankruptcy laws include several provisions to enable bankruptcy filers to retain some amount of their property. These are exemption laws, and they are in place to protect your property from seizure by the bankruptcy trustee or any of the creditors in your case.

There is an allowance of up to $10,000 for home equity, up to $5,000 worth of household goods, and up to $3,500 worth of equity in any motor vehicles. The $5,000 allowable for household goods is doubled if a couple is filing for bankruptcy jointly.

In addition to the $5,000 allowance, no one item claimed under this provision should be more than $300 in value. The best gauge of an item’s value is what you would be able to resell it for. You can check e-bay or the online classified site craigslist to determine at what price comparable items are selling.

For bankruptcy filers, one of the biggest areas of concern is often the impact that the bankruptcy will have on their retirement accounts. In Atlanta, bankruptcy judges have upheld the decision that both 401K and pensions are exempt assets. Often these accounts have penalties for early withdrawal and thus, it has been determined that including them in the debtor’s bankruptcy estate will not assist them in repaying their debts.

Georgia bankruptcy laws also allow some flexibility within you exempt assets. Debtors may exempt up to $3,500 for their motor vehicle. If a debtor only claims a portion of this exemption, they may apply the remainder to their homestead exemption.

The implications of Atlanta bankruptcy exemptions also differ depending on which chapter of bankruptcy you choose to file. Some high value assets cannot be fully protected in a chapter 7 bankruptcy, while some unsecured debts will have to be repaid in a chapter 13 bankruptcy.

Payment Plan In Chapter 13 Bankruptcy

Chapter 13 bankruptcy in Atlanta Georgia will require that you complete a detailed payment plan for your qualified debts. This plan will then be filed with the federal bankruptcy court that represents your area. The plan is administered by an officer of the court, known as a bankruptcy trustee.

After you and your legal representative have filed your payment plan, either the court trustee or any of your creditors may file an objection to your plan. These objections will be heard at the 341 Meeting of Creditors. This meeting will also be an opportunity for the trustee to ask any questions they may have about your plan.

In some bankruptcy court districts, the trustees have developed a checklist of questions that the debtor will be required to sign as part of the court record. The debtor should bring two forms of ID to the 341 meeting – one photo ID and one identification card including Social Security number.

Once the payment plan is approved by the court, creditors are prohibited from collecting their debts independently while the plan is effective.

The plan will specify that payments be withdrawn from the paycheck of the debtor. These payments will then be turned over to the trustee, who will administer the payments as specified in the plan.

Chapter 13 bankruptcy in Atlanta, Georgia is a viable option for individuals who are facing mortgage foreclosure or car repossession. This type of bankruptcy enables someone who may have simply fallen behind on payments the opportunity to catch up and begin to rebuild their financial future.

Filed under: Bankruptcy Information — Tags: Chapter 13 bankruptcy Atlanta, Chapter 13 bankruptcy in Georgia, Chapter 13 Bankruptcy Payment Plan — admin @ 9:30 am

Credit Card Reform Set For Signature

A measure that White House Spokesman Robert Gibbs called “important reforms to protect consumers and bring common sense, rationality into our financial system” will likely be signed by President Barack Obama this week.

The bill requires credit card issuers to give 45 days notice before changing interest rates on an account. It also prohibits companies from raising the interest rate on existing balances unless the card holder is at least 60 days behind on minimum payments.

The measure aslo includes an unrelated amendment that will allow loaded handguns and rifles to be taken into national parks and preserves.

Filed under: Economic News — Tags: credit card reform, President Barack Obama, Robert Gibbs — admin @ 7:12 am

Congress Readies Credit Card Reform For President

The Senate passed its version of credit card reforms that would restrict credit card issuers from raising interest rates and changing the terms on accounts. Leaders will work to make the measure align with the House version of a bill and get it to President Barack Obama by Memorial Day.

It brings to mind the promises that were made for bankruptcy reforms that would allow a judge to modify a first mortgage in a Chapter 13 bankruptcy case. Does Congress think that the credit card reforms will be enough to slow the growing foreclosure rates and protect homeowners from eviction?

Filed under: Economic News — Tags: Chapter 13 bankruptcy, credit card reform, Memorial Day, President Barack Obama, protect homeowners from foreclosure — admin @ 12:25 pm

Bankruptcy Rate Climbs 36 Percent In First Quarter

After posting the highest number of bankruptcy filings in a year last year, the first quarter numbers in the U.S. Bankruptcy Court’s Northern Georgia District, which includes the Atlanta Metro area, rose almost 36 percent in the first quarter.

The total number of bankruptcies filed rose to 12,059 in January, February and March of 2009, up from 8,878 in the same time period in 2008.

The jump is seen mostly in Chapter 7 cases, which grew 61 percent, according to court records.

Filed under: Bankruptcy News — Tags: Atlanta Bankruptcy, Bankruptcy Rate Up in North Georgia — admin @ 7:52 am

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