Filing personal bankruptcy can be advantageous, but also very scary. You’re placing your financial future on the line so you can avoid losing everything you own.
Just what form of personal bankruptcy should you file? What forms are you eligible for? How much will it cost? And what should you look for in a Georgia lawyer?
This post helps.
Forms of Personal Bankruptcy
Since foreclosure is less common in Georgia than some other states, but since unemployment is still relatively high, there are many choices to make in filing bankruptcy. An experienced Georgia bankruptcy attorney can help you, but first you need a quick education on the subject.
Chapter 7 bankruptcy is the most common, but in Georgia eligibility can be a problem. Chapter 13 bankruptcy is very good for home owners, but if you’re unemployed, you may have trouble filing.
Chapter 7 bankruptcy can in fact eliminate all your credit card debt, and many lose practically nothing in assets sold. Chapter 13 can in fact save your home from foreclosure, and you can get more time to pay other bills as well.
Eligibility for Bankruptcy
If you make too much you may not be eligible for Chapter 7. The general rate is the median income for Georgia residents. Here is a breakdown.
1 Georgia Resident: Yearly Income $40,691
2 Georgia Residents: Yearly Income $55,258
3 Georgia Residents: Annual Income $61, 104
4 Georgia Residents: Annual income $68,502
If you make more than these numbers, you have to file Chapter 13. Most people are eligible for this.
If you have more than $360,475 in unsecured debts and over $1,081,400 in secured debts you cannot file Chapter 13.
Lawyer Fees for Bankruptcy
Since filing personal bankruptcy itself is very cheap–$299 for Chapter 7 and $274 for Chapter 13–it’s also good to get a barometer on lawyer fees. These do vary depending on experience. You should, as a rule of thumb, contact several and ask for general rates and if they charge for initial consultations. The general rates for most personal bankruptcy is higher than filing fees, usually between $1,000 and $2,000.
You Can’t Afford a Lawyer?
Filing bankruptcy is a tough task to do alone. You should really consider how you can put the money together. Factor in how much money you’d lose if this bankruptcy failed. For instance, what if you have $20,000 in credit card debt? What if you were about to lose a $100,000 home?
In some cases, you can’t afford a bankruptcy attorney. But in most instances, they’ll be able to work with you, especially if you are working or have an income.
