How Georgia Chapter 7 and Chapter 13 Bankruptcy Work – Fees

One of the biggest questions on bankruptcy is how much it costs–all the fees for court documents  and  lawyers. The actual filing fee with the court is really quite small, but attorneys vary on how much they charge you. Sometimes you get what you pay for … sometimes you pay high and get a lacking service… and other times you get lucky and find the right fit for you.

Chapter 7 bankruptcy costs $299 to file with the court. For all the debt you can expect to be discharged at a minimal loss of assets, that’s a bargain. And if you can’t pay that, the court may be able to work with you in other ways.

Chapter 13 bankruptcy costs $274 to file with the court. The Chapter 7 and Chapter 13 bankruptcy fees with the court are the same across every state, including for Georgia bankruptcy filers.

So $299 for Chapter 7 bankruptcy and $274 for Chapter 13 bankruptcy–but the lawyer fees cost a fortune, right? Not always! You can expect fees to vary in terms of the experience of the bankruptcy lawyer. The worst thing you can do is choose to file with the first lawyer you find; shop around.

How Georgia Chapter 7 Bankruptcy Works
As with all other states, you file a petition with the bankruptcy court in your area in Georgia. You must also file with the court several other key documents, including schedules of assets, income and expenditures, financial affairs, and a schedule of executory contracts and unexpired leases. For individual debtors, you have more documentation to file, including proof you went to a credit counseling agency and developed a repayment plan.

These things can get complicated, and you have to see the advantage of hiring an expert in all this process. Before we talk about that more, let’s go over how Georgia Chapter 13 bankruptcy works.

How Georgia Chapter 13 Bankruptcy Works
A Georgia Chapter 13 bankruptcy begins by filing a petition with the bankruptcy court in your area. You should, even before you do this, make sure you are eligible to file; if you have too much debt you might not be.

You take similar steps in Chapter 13 as Chapter 7 bankruptcy. This includes schedules of assets and liabilities, current income and expenditures, financial affairs statement, and more. Again, you must also  get a certificate from a credit counseling agency and prove you created a repayment plan.

Filing Documents and Other Things a Georgia Bankruptcy Lawyer Can Help With
There are dozens if not hundreds of other things you really need to know. The best option is to work with a professional so you can do this right the first time. In many cases, you save money by hiring the right Georgia bankruptcy lawyer. The rates of bankruptcy lawyers vary from $1,000-2,000 for filing, but look for quality and personal contact in the process, make some phone calls and do research, then make an informed decision.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , — jmalewitz @ 1:42 pm

Advantages of Filing Chapter 7 and Chapter 13 Bankruptcy Before Georgia Foreclosure

Filing for Chapter 7 or Chapter 13 bankruptcy is too complicated for many individuals to do by themselves, but the benefits of bankruptcy can be had by all. While it can be a complex and difficult process, in most cases Chapter 7 and Chapter 13 bankruptcy do more than give you a fresh start–they give you a second chance.

As noted in this blog post on Georgia Debt Law, if you’re facing foreclosure then  bankruptcy is often your best option. At a minimum, you have extra time to find a second residence. At best, it buys you time to save your home.

Just what bankruptcy should you file and how does it work?  First, let’s go over exactly what a foreclosure is.

Georgia Foreclosure
You fall behind on your mortgage payments, and the lender isn’t working with you on a payment plan. Maybe you have too many other bills, such as medical fees or car payments, or maybe you lost your job or someone close to you passed away. No matter the reason, the lender can take steps to bring foreclosure on your home, selling it at an auction and paying back your debt through the sale.

There are many alternatives to filing bankruptcy, but in terms of foreclosure, if you’re behind on payments sometimes there is little else you can do. If the lender is unwilling to negotiate, if you have bad credit, or if you have no other place to go if you lose this home, bankruptcy is almost a must.

Georgia Bankruptcy
Filing bankruptcy in Georgia usually calls for Chapter 7 or Chapter 13 bankruptcy. The good news with Chapter 7 bankruptcy is that it buys you extra time to find another residence (if you have few other places to go). This can be several months if not longer, as by law the courts can protect you.

How? If you file Georgia bankruptcy, there is the “automatic stay” which usually gives you 3-4 extra months extra time. You will likely lose your home if you file Chapter 7 bankruptcy in Georgia, but 3 months is a lot of time to figure something out.

On the other hand, you may want to fight this to the end. The best option if you want to keep your home–if you want to fight for it–is to file Chapter 13 bankruptcy in Georgia.

Advantages of Chapter 13 Bankruptcy in Georgia
Chapter 13 bankruptcy can save your home. You will need enough income to meet your current mortgage payment, so do what you can to get that. After, you will set up a repayment plan over a few years time–usually 3-5 years. This means you’ll pay back the debt over a longer period. It  does call for bringing in more money, but Chapter 13 bankruptcy is the foreclosure solution.

Hiring a Georgia Bankruptcy Lawyer
Your best choice is to discuss this with a Georgia bankruptcy lawyer. Did you know, for example, you may be able to cancel your 2nd and 3rd mortgages? It’s not a dream, with the right assistance you can. And people successfully file for bankruptcy in Georgia to stop or delay foreclosures. All you  need now is to choose a lawyer who can help.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , — jmalewitz @ 8:08 pm

Role of a Case Trustee for Georgia Chapter 7 Bankruptcy

Filing Chapter 7 bankruptcy in Georgia is quite often the best decision you can make. Depending on your income and assets, you may not only be eligible to file but will lose very little. It should be said, first, what Chapter 7 bankruptcy can do for Georgia residents, how it works, and what the trustee does.

Chapter 7 bankruptcy may be different than you think. With changes in bankruptcy law in the past years, Chapter 7 bankruptcy is now tougher to file. This is because some are forced to file Chapter 13 bankruptcy if they have enough income. It depends, then, on how much you make and  your monthly expenses. If you are out of work, and have little money coming in, you should be eligible for Georgia Chapter 7 bankruptcy.

Chapter 7 bankruptcy discharges you from the majority of your debts. There is a long  list of debts you cannot discharge, mainly tax debts, child support or alimony, debts for student loans,  and some others.

Chapter 7 bankruptcy is a liquidation proceeding. For Atlanta residents and all U.S. citizens, the court appoints a trustee to liquidate your nonexempt assets. In some cases, there are no assets which are nonexempt, meaning you lose nothing. This varies, but most Chapter 7 bankruptcy filings in  Georgia are no asset cases. The creditors will have no need to file a claim with the court in that case.

Once the bankruptcy begins, typically a 3-6 month process before your debts are discharged, an “estate” is created which in legal terms is the owner of all the debtors property.  Generally, creditors will be paid off by the nonexempt property of the estate.

The trustee has a key role here, in that he or she tries to get the most out of all the assets. The higher the sale, the higher amount which can be turned over to unsecured creditors. That means the trustee will be looking to sell your nonexempt properties for the highest value, as part of the Chapter 7 bankruptcy case.

But the debtor is actually trying to get money from nonexempt property in most cases. The trustee will follow Bankruptcy Code by the six classes of claims used in paying back debtors. As each of these classes are paid, the next level is paid.

What This Means
Filing a Chapter 7 bankruptcy involves far more than this complex set of rules. In short, even though in many cases little property is lost, the more value of your nonexempt property,the more the debtors have to pay back. Chapter 13 bankruptcy, now more encouraged than ever, is preferable if you want to maintain your home or other property. The only problem is, Chapter 7 bankruptcy discharges debt, while Chapter 13 bankruptcy does not.

Hiring a Georgia Bankruptcy Attorney
This makes it clearly more important to hire counsel, a Georgia bankruptcy attorney who can help you navigate the Bankruptcy Code.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , — jmalewitz @ 9:17 pm


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