Thousands of Atlanta, Georgia, residents are unable to pay their bills or meet their financial obligations due to the economic downtown. If you are facing home foreclosure or unable to pay your credit card bills you are not alone.
No one wants to have to file bankruptcy and it is a difficult decision which should only be done after your other financial options are exhausted, but filing bankruptcy in Atlanta may allow you to dismiss most or all of your unsecured debt or develop a repayment schedule to repay your debt and allow you to make a fresh financial start. If you have questions about filing bankruptcy in Atlanta, an Atlanta bankruptcy attorney is available to answer your questions and help you determine if you can file Chapter 7 or Chapter 13 bankruptcy.
Filing Chapter 7 Bankruptcy in Atlanta
Filing Chapter 7 bankruptcy in Atlanta may allow a filer to eliminate or discharge most of their unsecured personal debt. Dischargeable debts are determined by federal bankruptcy law (not all debts are eligible for discharge), but qualifying debt may include medical bills and credit card debt.
The first step in the Chapter 7 bankruptcy process is to contact an Atlanta bankruptcy lawyer who can determine through the bankruptcy “means test” if the filer is eligible to file Chapter 7 bankruptcy in Atlanta. If they are, the Atlanta bankruptcy attorney can file the bankruptcy petition in the appropriate bankruptcy court. The petition contains a list of the filer’s debts, non-exempt and exempt assets and the names of their creditors.
The bankruptcy court will review the petition, schedule the 341 Creditor’s Meeting and assign a trustee to sell the filer’s non-exempt assets and take the money from the sale and repay the filer’s creditors. Most debt is discharged within four to six months after the petition is filed.
Filing Chapter 13 Bankruptcy in Atlanta
Chapter 7 bankruptcy is a liquidation of assets. Chapter 13 bankruptcy is a reorganization of debt. One benefit of filing Chapter 13 bankruptcy in Atlanta is the filer may be able to retain their property and stop home foreclosure. Filing Chapter 13 bankruptcy may allow them to avoid selling their assets, and instead, allow them to restructure their debt payments over a three to five year payment period.
Not all residents can file Chapter 13 bankruptcy in Atlanta. Filers will need a steady income source to qualify for Chapter 13 bankruptcy and can not have secured debt exceeding $807,750 or unsecured debt exceeding $269,250.
Personal Debts Not Eliminated By Filing Personal Bankruptcy in Atlanta
Filing Chapter 13 bankruptcy or filing Chapter 7 bankruptcy in Atlanta does not discharge all personal debt. Debts not eliminated by filing bankruptcy are documented in federal bankruptcy law and are the same for all states. Filing bankruptcy in Atlanta, Georgia, will not eliminate the following personal debts:
- Most back taxes
- Child support and alimony payments
- Certain student loans
- Purchases of luxury items within ninety days of filing personal bankruptcy in Atlanta
- Fines owed to federal or California government agencies
- Debts generated from fraudulent activity
- Recent cash advances of $825 within 70 days of filing personal bankruptcy
