If you are considering filing Chapter 7 or Chapter 13 bankruptcy in Gainesville, Georgia, you are not alone. Last year thousands of Georgia residents suffered severe economic hardships due to an unexpected medical crisis, job loss, home foreclosure or divorce. No one wants to file bankruptcy, but there are financial situations which make it a good option for getting a fresh financial start.
Filing Chapter 7 bankruptcy in Gainesville may allow Gainesville residents to eliminate most or all of their medical bills and credit card debt. Filing Chapter 13 bankruptcy in Gainesville will not immediately discharge debt, but it may allow the filer to create a more favorable three to five year repayment plan.
Before filing bankruptcy it is important to discuss all of your financial options with a Gainesville bankruptcy lawyer who understands federal bankruptcy laws and can help you decide if Chapter 7 or Chapter 13 bankruptcy is right for you.
Filing Chapter 7 Bankruptcy in Gainesville
Filing Chapter 7 bankruptcy in Gainesville discharges certain types of unsecured debt by liquidating the filer’s non-exempt assets and using the money from the liquidation to repay their creditors. This liquidation is done with the assistance of a court assigned trustee.
To begin the Chapter 7 bankruptcy process the bankruptcy petition must be filed in bankruptcy court. The petition provides information to the bankruptcy court about the filer’s creditors, debts and assets. The court reviews the petition and if is approved, the court schedules the 341 Creditor’s Meeting. Chapter 7 bankruptcy and the dismissal of debt can generally be completed within four to six months after the bankruptcy petition is filed by a Gainesville bankruptcy lawyer.
Filing Chapter 13 Bankruptcy in Gainesville
Filing Chapter 13 bankruptcy in Gainesville does not discharge debt immediately, but the filer can work with their Gainesville bankruptcy lawyer to develop a repayment plan which spans three to five years and may have more favorable repayment terms.
Chapter 13 bankruptcy is not a “liquidation” but a reorganization of a filer’s debts and may allow for the filer to keep their home and other property. This can be very beneficial for filer’s who have assets they do not want to sell.
Not all Gainesville residents qualify for Chapter 13 bankruptcy. Filers must have a steady income which they can use to meet the obligations of the repayment plan. They also can not have secured debt which is more than $807,750 or unsecured debt which is more than $269,250.
Personal Debts Not Eliminated By Filing Personal Bankruptcy in Gainesville
All debts which are eligible to be discharged are outlined in the federal bankruptcy code. Filing Chapter 7 or Chapter 13 bankruptcy in Gainesville does not discharge all personal debts. Debts not discharged must be paid or creditors have the legal right to continue their aggressive debt collection efforts. Debts not discharged by filing personal bankruptcy in Gainesville include the following:
- Most back taxes
- Child support and alimony payments
- Certain student loans
- Purchases of luxury items within ninety days of filing personal bankruptcy in Gainesville
- 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
