Why Georgia Chapter 7 Individual Bankruptcy is a Fresh Start

Bankruptcy isn’t for everyone, and can be confusing. For Georgia residents,  the positives and negatives can be confusing. You may have no choice … you may have options … you may be scared … or you’re just ready to move on and get a fresh start. No matter your reason for wanting bankruptcy, clearly Georgia residents just like you are taking advantage of it. Why? Chapter 7 bankruptcy, the focus of this post, is very beneficial, especially when you break down the numbers.

-You can eliminate medical debt.
-You can discharge mortgage debt.
-Credit card debt can be completely discharged.

There are cases where you might desire filing in Georgia Bankruptcy Court with Chapter 13 bankruptcy. This too can give you a fresh start if you want to rework your debts, buy time to keep your possessions, and save your home from foreclosure.

Which is better, Chapter 7 or Chapter 13? In the past years, both have been used by millions across the country. And in Georgia, unfortunately the rates for both are have been high in recent years. Why are so many filing? Because quite often the advantages outweigh the disadvantages.

Chapter 7 bankruptcy does more than eliminate debt. It can also buy you time to stay in your home with what’s called an “automatic stay,” it can immediately stop creditor harassment, and you can get that fresh start.

Chapter 7 bankruptcy can save both individuals and families.

Families can file joint bankruptcy to consolidate debt. It’s far better than working with a debt consolidation company. If a wife loses her job, and the husband cannot support the family and pay debts on his own, Chapter 7 bankruptcy can discharge thousands if not tens of thousands in debt. Even better news, rarely will Georgia bankruptcy filers lose any assets.

What happens is you hire a bankruptcy attorney, file for Chapter 7 in the Georgia Bankruptcy court in your area, and meet with a trustee. This trustee will hold what’s a called a 341 meeting, where you appear and answer questions regarding your filing. In this short session, with the help of a Georgia attorney you will confirm your right to filing Chapter 7.

Once you get it over with, your debts can be discharged in a matter of months. In Chapter 13, it typically takes 3-5 years for the debt management plan, and you have to pay back debtors.

One negative often addressed is that you may lose valuable assets such as your home and car. True, the trustee can sometimes sell these in order to pay back your debts — that’s his or her job. However, rarely does this occur, and you can often negotiate with the trustee yourself to pay the debt for our car or home and keep it.

As you can see, Chapter 7 bankruptcy should not be  scary. It’s a decision thousands of Georgia residents make every year.  You can get the fresh start and lose practically nothing.

Filed under: Bankruptcy Information — Tags: , , , , , , , , — jmalewitz @ 12:57 pm

Advantages of Hiring an Atlanta Chapter 13 Bankruptcy Attorney

If you file with the Georgia Northern District Bankruptcy court, you’ll see how complex the process can be. Who can help?

No matter your personal bankruptcy choice — Chapter 7 or Chapter 13 — you might wonder how a lawyer actually helps. With Chapter 7, it’s clear that the 341 meeting, where you’re asked questions and creditors can optionally participate, is about gathering information. If you fear you’ll lose assets, you may consider filing Chapter 13 Atlanta bankruptcy.

Why file Atlanta Chapter 13?
Since Atlanta as a city has very high foreclosure rates in the past years, Chapter 13 is being recommended by expert lawyers to help residents save their homes. Simply put, Chapter 13 bankruptcy  is the best way to save your home. For Atlanta residents, there are details.

You must be eligible. You must create a repayment plan. And you will have to appear in court to explain your situation.

According to the U.S. government, “Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $360,475 and secured debts are less than $1,081,40.” Secured debt  would be debt backed up with collateral,such as your home. Unsecured debt is the opposite: you are backing it up with nothing.

The debt management plan includes details on what creditors you owe money to, how you intend to pay, among other things. This will be how you intend to stay solvent on paper.

What does an Atlanta Chapter 13 lawyer do?
Say you want to know more about the process of Atlanta Chapter 13 bankruptcy. Who do you call? You can find information online, but you really need an experienced attorney to help with your case. For example, you may not be eligible for Chapter 13, but Chapter 7 is wise (or the other way around). Also, in Chapter 13, usually in about 30 days you have a 341 meeting with the U.S. trustee. An experienced attorney can help you in in the meeting and make sure your proposal for debt management is sound.

The attorney can do far more than answer questions. A good one will help you with the proposals, documentation, requirements, and save you time and money doing so.

How will creditors act?
Creditors are technically still going to get their money in most cases. If you have difficult creditors, an experienced Atlanta Chapter 13 attorney can handle them for you. They do have the option to appear with the trustee at the 341 meeting, but most don’t. You will rarely have any more dialogue with creditors you owe money to after any form of personal bankruptcy, usually during it too.

How do you get started?
To get started, you should hire an experienced attorney, prepare all necessary documentation, pay the fee for filing, and create a proposal for your debt management plan.

Is an Atlanta Chapter 13 bankruptcy lawyer really important?
Finally, the question may come up: can you do all this alone? Yes, you can. Even if you have legal experience, the paperwork, 341 meeting, creditors, and dangers of making mistakes, however, are far too great to ignore. Atlanta Chapter 13 bankruptcy will change your  life, and is important for your financial future. Hiring an experienced attorney makes the process much easier.

Filed under: Bankruptcy Information — Tags: , , , , , , , , — jmalewitz @ 12:29 pm

What Decisions are Made in Georgia Bankruptcy Court?

In a recent post, we went over what happens in Georgia Bankruptcy court. This post goes even deeper, highlighting subjects such as the 341 meeting, and other points in court where information is obtained and decisions are made.

For Georgians, bankruptcy court includes the Georgia Middle District Court, Georgia Southern District Court, and Georgia Northern District court. Each have courts in regions of Georgia, and depending on where you live you’ll be going to the court for that area. For example, if you’re an Atlanta resident, you would go to the Northern District Court.

Now that you know where to go, you might have some expectations of getting into fights with creditors in court. In most cases these processes are very simple in terms of what occurs. You will appear in court regardless of whether you file personal bankruptcy Chapter 7 or Chapter 13

The 341 Meeting
“341″ gets its name from the piece of bankruptcy code it applies to. A 341  meeting is far from some court room drama: you are actually only there briefly. The trustee — the person appointed by the court for your Chapter 7 hearing — will be finding out your exempt and nonexempt assets, and also ask some basic questions to you. While it’s not a battle, if things come up which should have been noted before, such as a property you didn’t list, this information can technically be used against you. In other cases, new information may help you successfully file while losing little if anything. Remember, in most Chapter 7 cases, including  in Georgia, you lose no assets.

What kind of questions will you be asked at this 341 meeting? The trustee usually has a list of simple questions regarding the facts of your bankruptcy filing: if you left assets off, for example.

And in most cases, creditors will not even appear at the hearing, though they are invited.

Chapter 13 Georgia Bankruptcy Court
If you file Chapter 13 bankruptcy, you must also appear in court, typically for a longer period. You will have a different kind of meeting with creditors as defined by the trustee. In both Chapter 7 and Chapter 13, you usually have an appointment for a 341 meeting within 30 days.

What happens if you don’t have all the information?
A 341 meeting can and is often extended until you can provide all the necessary information.

What if you have assets not listed?
If you have assets not listed in your bankruptcy filing, simply state you made a mistake. Unfortunately you are still responsible for doing this. If you try to hide assets, it can only damage your chances. If it’s a simple mistake, be thorough in handing over information on all assets to the trustee.

What will you lose?
As stated earlier, Chapter 7 bankruptcy filers typically lose nothing. If you have a home or car, in many cases they are considered exempt and you won’t lose them. The whole purpose of Chapter 13 bankruptcy is to keep assets instead of selling them, so if you can maintain your repayment plan you can keep everything.

How will creditors act?
Creditors rarely appeal . Once you file, they have the option to fight for your right to bankruptcy. If you filed for Chapter 13 bankruptcy and received an automatic stay on your home, technically creditors can appeal. Most are barely involved at all.

Where to go for professional help?
If this all sounds complex, that’s because it can be. If you are honest, you’ll rarely have any trouble. You do need professional counsel for any bankruptcy case; while the in court drama is limited, correctly filing is important. Also, if you fear assets being taken, you can get help from a Georgia bankruptcy attorney.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , — jmalewitz @ 1:58 pm

Fear On Bankruptcy and Solving Problems

Fear of bankruptcy, whether it’s filing or appearing in court, can quite often be nightmarish. However, bankruptcy court works to help citizens, not punish or hinder them. The main goal is to give you a fresh start financially, or to buy you more time before foreclosures and repo-men.

There are many details to filing bankruptcy, and much that can happen outside of your control. You may or not be eligible for a specific bankruptcy, you may lose nothing or you may lose a lot, you may lose your home or you may save it–these are all decisions made in court based on your situation. It’s understandable to have some fears, but the more you know the  less you have to fear.

The good news is most bankruptcy filers, especially Chapter 7 bankruptcy filers, lose practically nothing. And successful Chapter 13 filings can often give you the extra time to put your finances in order. So who decides what of yours is sold? It’s not really based on the fact you deserve it or you don’t. It depends on your current assets and what you owe.

The first step to stopping fear is to hire an experienced lawyer.

Who should you hire?
Who you hire may have a bigger effect on your bankruptcy than you know. Just in 2009, over 1 million people filed bankruptcy. The majority hired bankruptcy lawyers, opting to go with experience. The problem is the number of lawyers who specialize in bankruptcy make one lawyer taking on 10 if not more cases a reality. You should hire someone who can help influence the court decision by turning in correct paperwork, spend adequate time with you, never misses a court date, and can educate you on how you should act.

What decisions are made in court?
Many decisions are made out of court, but once you file for bankruptcy, many processes go into motion. If you file Chapter 7 bankruptcy, you will appear in court briefly and most likely be done. In Chapter 13, which can be a longer process, you appear for a longer period.

You can expect questions in court. The following may be asked by the judge.

Do you own a home?
Have you transferred any property?
Do you have the right to sue anyone for bodily injury?
Have you listed all of your debts and assets?
Are you expecting to inherit money shortly?

In chapter 13 filing, you will likely be asked more questions. But it still takes only 10-15 minutes and you’re done.

Are you eligible?
The court does make the decision on whether you are eligible. It depends on your state. If you’re a Georgia resident, your income levels must be lower than the state median income. This varies depending on how large your family is. Look to this POST for more info on eligibility in Georgia.

What will you lose?
Most bankruptcy filers happily lose nothing. For instance, in the majority of Chapter 7 cases, where a trustee liquidates your assets, you lose nothing. In and out of court, the decision will be out of your hands.

What does the Trustee do?
The trustee’s job is to first make sure you are eligible, and second to ensure your documents are correct.

What happens upon successful filing?
In Chapter 7 cases, your discharge occurs only a few months after a decision. In Chapter 13, you are in it for the long haul–3-5 years.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , — jmalewitz @ 8:10 pm

Process for Chapter 7 Bankruptcy – What Does the Trustee Do?

What bankruptcy trustees do, how they effect your bankruptcy, and how you can handle one can be complex. That makes it important to get the right attorney to help you through this process. You can hire an attorney: online, in the phone book, and through referrals. For Georgia residents, you can go to the State Bar of Georgia, or search “Georgia bankruptcy lawyers” online.

Now, let’s answer some key questions.

What is a trustee?
The trustee is a court-appointed individual who will pay your creditors on what you owe them. The trustee, and potentially the staff, will be charged with the Georgia court to examine your papers, and liquidate nonexempt property.

What is nonexempt property?
Exempt property you get to keep. Nonexempt property can be sold by the trustee. In some cases, your home may be exempt, depending on its value. Other times, valuable assets like your home and car can be considered nonexempt and sold to pay off creditors.

What will you lose?
Studies on bankruptcy clearly point out how trustees often sell nothing you own. Most or all the property is very often considered exempt and will not be sold. If you own a lot of assets, especially expensive ones, you may consider filing under Chapter 13 bankruptcy to keep your property.

What do creditors do?
The creditors will stop calling you after you file bankruptcy. There is no point. In some cases, they can appeal the case, especially if an automatic stay is issued. What is an automatic stay? That’s where the seizing of assets such as homes can be delayed by law.

Typically, creditors have few powers once you file Chapter 7 bankruptcy. On the other hand, in Chapter 13 bankruptcy,they stand to be paid back for your debts.

What’s Chapter 13 bankruptcy?
Since we’ve mentioned Chapter 13 several times, let’s highlight it. Chapter 13 bankruptcy is different than Chapter 7 in that you pay back debts. Also, a Chapter 7 bankruptcy takes months, while Chapter 13 takes 3-5 years. The advantage with Chapter 13 is if you fear losing expensive assets or your home going into foreclosure, it can effectively save stop it.

What’s better?
Chapter 7 and Chapter 13 each have their own advantages, and more often than not the choice is based on need. If you file Chapter 7, you can eliminate large amounts of debts. If you file Chapter 13, you can save all your assets.

The Final Step
Handling a trustee and choosing between Chapter 7 and Chapter 13 bankruptcy is cause to hire a professional. This means a Georgia personal bankruptcy attorney — who is the most valuable asset you have in bankruptcy.

Filed under: Bankruptcy Information — Tags: , , , , — jmalewitz @ 12:58 pm

Joint Bankruptcy or Individual Bankruptcy?

What does joint bankruptcy mean?

It’s where you file with your spouse. Joint bankruptcies are very common.

But did you know you have the option to file as an individual too? Just because you are married does not mean you have to file joint bankruptcy.

There are advantages to each. It’s wise to consult with a good bankruptcy lawyer in the Georgia area who can help you choose. This post is a good crash course on filing jointly, but not in the place of professional counsel.

Advantages and Disadvantages of Joint Bankruptcy
It’s a big decision to file bankruptcy jointly, but thousands do it every year, for reasons such as medical, foreclosure, or credit card debt. There are, as with all bankruptcies, advantages and disadvantages.

You can expect costs to go down for a joint bankruptcy. The fees to file jointly are about the same. Also, if you have debts you and your spouse owe, the spouse may be forced to pay the debt if you file individually, and handle creditors until the bankruptcy is in motion; if you file jointly this problem disappears. Lastly, the paperwork is much easier if you file jointly. It’s about half as much.

Now, there are many reasons to not file jointly. This may be the case where you have a lot of credit card debt, but that was before you were married or you wish to handle it yourself. If you have high credit card debt, and your spouse has perfect credit, the spouse may not want a bankruptcy on file. These lasts up to 10 years.

Also, you may not be eligible to file with a spouse in some cases, such as if the spouse has a recent bankruptcy. There are  many other reasons, such as if property you own in excess of bankruptcy limits is protected by creditors.

Joint filing has many advantages over individual bankruptcy, but in some situations you may have trouble successfully filing. This is mainly because of the Bankruptcy Code. This code states eligibility rates are based on the states median income. If you have more than the Georgia median income for a family your size, you cannot file Chapter 7. For example, if the two of you have no children and combined gross $100,000, you are not eligible, though you are for Chapter 13 in most cases.

There are many more things of note, but it’s important to remember bankruptcy itself is a common practice where you as an individual often lose little to nothing. The first step is not filing, but hiring a Georgia attorney to represent you in court.

What should you look for in a Georgia attorney?
You want your questions answered.
You want a knowledgeable voice in court.
You want one who is affordable.
You want one not overburdened with cases.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , — jmalewitz @ 1:06 pm

How Bankruptcy Helps with Atlanta Mortgages and Foreclosures

While the economy is improving, the simple fact is foreclosure rates were “scary” high in 2009. The number of foreclosures in Georgia, especially Atlanta, were some of the highest in the nation, accounting for a good number of the total for every state.

Atlanta particularly has been hit hard, perhaps one of the hardest of any city in the U.S. Metro Atlanta in particular had many subprime mortgages–and now these mortgages are nine times more likely to go into foreclosure.

The problem is in how these mortgages were laid out. Obviously, it was a big mistake to allow such a high number of subprime mortgages, but it happened across the country. Even scarier, most of these Atlanta mortgages are going the way the rest of the country is.

Worry not, because the economy is clearly improving. While the last quarter of 2009 was very high in terms of foreclosures, especially in Atlanta, the economy is slowly rebuilding and unemployment lowering.

That doesn’t help you unless you can avoid losing your Atlanta home. This post will walk you through the process of choosing between forms of personal bankruptcy, hiring a lawyer, and avoiding foreclosure.

Chapter 7 Bankruptcy – The Good and Bad
The good news with Chapter 7 is that you can at a minimum buy extra time to live in your home before foreclosure, and the mortgage can be discharged as part of filing. The bad news is, you will most often lose your home through foreclosure. This is supposed to help avoid foreclosure, right? It’s still good to consider Chapter 7. An experienced Atlanta attorney can tell you 1) if you’re eligible and 2) what you can save. If you are a single resident of Atlanta, for example, you cannot make more than $40,546 and file.

Chapter 13 Bankruptcy – The Answer to Foreclosure
Federal law allows most all cases to be taken under Chapter 13 unless you have hundreds of thousands in debt. This is the same across every state in the country.

Chapter 13 is truly the answer to saving your home. First,  this givesyou protection. Immediately after filing at the Northern Georgia Bankruptcy Court (for Atlanta residents), an “automatic stay” will be given by the court. This effectively delays and potentially stops the foreclosure so the bankruptcy proceeding can occur.

Next, you can restructure your payment plan to your Atlanta lender. You must stay current on your mortgage in order to keep your home, and you also should file Chapter 13 before you fall too far behind in payments or it won’t work (if the foreclosure process is started, you cannot stop it in most cases).

Hiring an Atlanta Lawyer
The State Bar of Georgia and your computer are all you really need in order to get help avoiding foreclosure. You want a lawyer who specializes in bankruptcy, has experience in helping avoid foreclosures, and can educate you on the advantages and disadvantages. Price may be an issue, so be sure to ask the fees before hand. Filing bankruptcy itself is very cheap, but lawyers can sometimes be expensive.

Filed under: Bankruptcy Information, Bankruptcy News — Tags: , , , , , , , — jmalewitz @ 12:40 pm

Common Debts Georgia Residents Can Discharge with Bankruptcy

Historically, Georgia has not only been in the top 5 for bankruptcy filings, but also Georgians have been subject to low credit scores. But the good news is, Georgia foreclosures are going down, unemployment seems to be slowing, and bankruptcies are helping many get a fresh start.

A common question we hear is, what common debts can be discharged by filing bankruptcy? The advantage of bankruptcy, especially personal Chapter 7, is that you can eliminate the majority of your debts in a matter of months. However, you must be eligible, certain debts cannot be discharged,and you may lose assets.

What common debts can be discharged?
In some cases, you can discharge almost all of your debt. There are some debts you cannot discharge, including: taxes, alimony, and child support. However, you can technically discharge your mortgage, car payment, credit card debt, medical bills, and some other debts you owe.

Bear in mind, when you discharge debts, it’s not a free deal. While most of the time you can discharge debts, those debts come with a price. If you discharge your mortgage, your home will most likely be taken. If you cannot stay current on your home, you may have no other choice. If you discharge your car, technically this can be sold as well. This is Chapter 7 bankruptcy law, so let’s go over that and how Chapter 13 can help you.

Why file Chapter 7?
Chapter 7 bankruptcy is a liquidation. The biggest benefit is getting a fresh start. You may lose some if not many assets, but in most cases you lose nothing and discharge thousands if not tens of thousands in debt. If you file Chapter 7, creditors have no more reason to contact you. A common Georgia debt is credit card debt, and with Chapter 7 bankruptcy you can discharge all your debt for a minor loss.

Why file Chapter 13?
Chapter 13 bankruptcy on the other hand has the opposite effect: you do not liquidate your property. You want to keep your property in most cases. Sometimes you may not be eligible for Chapter 7 and be forced to file under Chapter 13. Why? If you make too much, the current Georgia median income is how this is factored in, you won’t be eligible for chapter 7.

Now, Chapter 13 has many advantages. You’ve been paying off your home for years if not decades. You love the place, but fear foreclosure is on the horizon. Now is the time to act, because if you wait to long and the bank forecloses, you have little choice but to let them take it. If you act beforehand, if you hire an attorney and file under Chapter 13, you can save your home and car. This works well if you have the money, a job, and can afford to keep up with the payments. Chapter 13 allows you to pay debts over a 3-5 year span, keep your car and home, and rebuild your finances.

Why not do nothing?
In some cases, people do nothing because they have nothing. While this strategy may seem odd, it does work in some cases. If you have lots of debt but few assets, it’s an option. However, most will want to take action immediately. Doing nothing can be very dangerous, though it’s an easy step.

What should you do? We recommend you consider your personal bankruptcy options, hire a lawyer, and immediately act to protect your financial future.

Filed under: Bankruptcy News — Tags: , , , , , , , , — jmalewitz @ 1:24 pm

How to Declare Bankruptcy in Georgia

The good news is Georgia foreclosures and bankruptcy rates, though still a problem, are starting to look better. In 2009, Georgia and more specifically Atlanta had some of the highest rates of foreclosure in the country. And bankruptcy, sometimes as an effect of foreclosure, was common.

This is not to say filing bankruptcy is always to be avoided. In tough economies, when you lose your job, when a foreclosure is close and you want to save your home — these are some of the many cases where filing bankruptcy can be beneficial.

So how do you declare bankruptcy in Georgia?

Some of it’s the same as all other states, but depending on where you live, you’ll either file in Georgia Northern Bankruptcy Court, Georgia Southern Bankruptcy Court, or Georgia Middle Bankruptcy Court. If you live in Atlanta and want to file Chapter 13 or Chapter 7 bankruptcy, for example, you would go to the Georgia Northern Bankruptcy Court.

Now that you know where to go, it’s time to find out how to actually file and successfully declare bankruptcy.

Collect Personal Financial Information
First, you want to collect certain personal information. For personal bankruptcy, you need to show financial information, secured and unsecured debts, tax returns for the last two years, deeds to real estate, car titles, and loan documents.

You may be wondering, what are secured and unsecured debts? Secured debts are debts you have with collateral such as your home and car; unsecured debts are other debts such as credit cards where there is no home or car to be used as collateral on the debt.

Complete Bankruptcy Forms
At this next stage, you should consult with an experienced Georgia bankruptcy attorney in your area. You want one who specializes in personal bankruptcy. Why? You will have to complete some complex bankruptcy forms; you can write them yourself, but it might be wise to hire a professional so you don’t make mistakes. You will also be paying the fee for personal bankruptcy — either $299 for Chapter 7 or $274 for Chapter 13.

File with Local Bankruptcy Court
The next step after filling out all the necessary forms is to file with the court. This is the easiest step. And after you reap the benefits of bankruptcy.

After Filing
The best part of filing personal bankruptcy is what’s called an “automatic stay,” which goes into effect after you file with the Georgia court. Creditors can no longer contact you regarding claims on debts. For Chapter 7, a trustee will be appointed to liquidate your assets and pay off creditors; in most cases, you lose nothing, but some do lose assets such as a home and car. For Chapter 13 bankruptcy, the automatic stay is much more powerful. This is because if you can catch up with the mortgage payments and stay on time paying them, you don’t have to worry about being evicted. In Chapter 7, you do get several months time, but you will likely have to find a new residence.

Who You Should Hire
This may all sound complex, and it filing bankruptcy can be. With the help of an experienced Georgia bankruptcy attorney, you can create the best strategy for you. You have a very good chance of losing absolutely nothing, and pay a small price for all the benefits. If you’re considering filing, don’t wait too long; hire an experienced bankruptcy attorney today.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , — jmalewitz @ 12:51 pm

What Are the Benefits of Personal Bankruptcy For Georgia Home Owners?

A recent study showed that one in five homeowners who file bankruptcy do so in order to stop a foreclosure. This is a prime example of how personal bankruptcy can be beneficial for Georgia residents.

What makes it different for Georgia residents? Georgia has a high unemployment rate, especially in major cities such as Atlanta.

But there is good news, as foreclosures in Georgia are less common, according to studies made in the tough year of 2009, than many other states. Georgia had a fraction of the total foreclosures that California had, for example.

Still, even with low foreclosure rates, unemployment rates pushing over 10 percent make it a tough market. This makes personal bankruptcy more valuable. You can save your home, you can eliminate debt, and you can get a fresh start.

Personal filing comes under Chapter 7 and Chapter 13 bankruptcy. How do they help Georgia home owners? Are you eligible? Let’s find out.

Eligibility
If you make too much money to file Chapter 7 bankruptcy, it’s actually not a bad thing. Home owners typically file under Chapter 13 bankruptcy.

Why?

You can save your home from foreclosure by filing Chapter 13. Chapter 7 is very good in other respects, such as eliminating credit card debt. But if you’re a employed individual or family member, you might be over the limit for Chapter 7.

How Chapter 7 Works
Chapter 7 is a liquidation. Your trustee sells your assets to pay back debt. Your debts in many areas are cleared, such as credit cards. However, for home owners the bad news is your home may not be exempt. There is exempt and nonexempt assets. If any asset is valued too high and not exempt, you might consider personal bankruptcy under Chapter 13.

How Chapter 13 Works
For home owners who are currently working, this is the prime option. You do not eliminate any debts. You create a plan for paying back the debts over 3-5 years. If you fall behind in mortgage payments because of a  mountain of other bills, you can save your home.

Warnings On Personal Bankruptcy for Home Owners
If you are going to file under Chapter 13, do not wait too long. If you do wait until the lender forecloses, you may lose the home anyways. Technically, lenders can foreclose after you miss one payment, but that rarely happens and usually it occurs after a few missed payments. There is an entire process to this and an experienced bankruptcy attorney can help.

Hiring a Personal Bankruptcy Attorney
Filing bankruptcy is cheap in comparison to all the benefits, especially for Georgia home owners. Chapter 13 bankruptcy, for example, is only $274 (and Chapter 7 $299). You do have to pay a lawyer, but if you hire the right one, it saves you time and money.

Filed under: Bankruptcy Information — Tags: , , , , , , , — jmalewitz @ 12:47 pm


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