No one wants to file bankruptcy and it is a serious financial decision which should only be done after considering your other financial options, but many Newnan residents were able to find financial freedom after suffering an unexpected job loss, medical crisis, divorce or death by filing bankruptcy in Newnan, Georgia.
If you are considering filing bankruptcy in Newnan it is important to call a Newnan bankruptcy lawyer to determine if you are eligible to file Chapter 7 or Chapter 13 bankruptcy. Filing Chapter 7 bankruptcy in Newnan can eliminate certain types of unsecured debt. Filing Chapter 13 bankruptcy in Newnan does not immediately eliminate debt but may allow you to create a new bankruptcy repayment plan. Filing bankruptcy is not the answer for everyone, but if you are desperate, it might be the solution you need to help you get a fresh financial start.
Filing Chapter 7 Bankruptcy in Newnan
Not all debt is discharged by filing Chapter 7 bankruptcy in Newnan, but most unsecured debt (credit card and medical bills) can be dismissed within 4 to 6 months. Filing Chapter 7 bankruptcy in Newnan can be a simple, low cost way to eliminate a large percent of a filer’s debts.
The first step to filling Chapter 7 bankruptcy in Newnan is to contact a Newnan bankruptcy attorney. A Newnan bankruptcy lawyer can perform the bankruptcy “means test” to determine if the filer can file Chapter 7 or Chapter 13 bankruptcy. The second step, if the filer qualifies, is to submit the bankruptcy petition in the appropriate bankruptcy court. The court reviews all of the filer’s petition information which includes a list of the filer’s debts, creditors, non-exempt and exempt assets. If the petition is approved, the court schedules a 341 Creditor’s Meeting and assigns a trustee to liquidate the filer’s non-exempt assets. The trustee is then responsible for distributing the proceeds from the sale to the filer’s creditors.
Filing Chapter 13 Bankruptcy in Newnan
Many people do not qualify for Chapter 7 bankruptcy. Filing Chapter 13 bankruptcy in Newnan may be another option to stop home foreclosure, wage garnishments and property repossession. Filing Chapter 13 bankruptcy in Newnan does not immediately discharge debts but may allow the filer to complete a new bankruptcy payment plan to pay their creditors over a three to five year period. Filing Chapter 13 bankruptcy may be preferable to many Newnan residents who do not want to liquidate their assets.
Not everyone can qualify for Chapter 13 bankruptcy. Filer’s who do not have a steady income source to make the required bankruptcy plan payments or those whose unsecured debt is higher than $269,250 or secured debt is higher than $807,705 will not qualify.
Personal Debts Not Eliminated By Filing Personal Bankruptcy in Newnan
Filing personal bankruptcy in Newnan does not eliminate debt which has been determined by federal bankruptcy law as non-dischargeable. Non-dischargeable debts will be the same for all states regardless of where the debtor files. All of the following debts are not discharged by filing bankruptcy in Newnan, Georgia:
- Most back taxes
- Child support and alimony payments
- Certain student loans
- Purchases of luxury items within ninety days of filing personal bankruptcy in Newnan
- 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
