The process for Georgia bankruptcy court is quite simple, and easy if you have an experienced bankruptcy lawyer. We went over it in a previous post, on “What Happens in Georgia Bankruptcy Court,” but it bears further consideration as many filers are scared of what may happen, or better, what may go wrong in court. You will be called irresponsible, a burden, a failure … well, maybe not that bad, but you get the point.
In reality, many myths abound about what really happens in any bankruptcy court, no matter the state. Let’s focus on the myths first, then we’ll go over why fear is unnecessary.
Chapter 7 Bankruptcy Myths
You will lose your home right? The fact is, most Georgia bankruptcy filers lose absolutely nothing. As proof, you can look over the government information on bankruptcy. You will technically lose assets which your trustee sells to pay your debtors; however, if you have the means, you can keep all your assets by setting up a separate agreement with your trustee to pay for them. Again, most all filers lose nothing, even with homes and cars included.
More myths: the process will take forever, you will be dragged through the courts, and you’ll never be able to get a loan again. Actually, the process takes months, you rarely even appear in court and if so briefly, and if everyone who filed bankruptcy could never get a loan, there would be some big problems for the economy.
Chapter 13 Bankruptcy Myths
Chapter 13 is used less in Georgia, but there are still myths about it. First, it should be made clear how you avoid foreclosure. If you’ve read any previous posts, you might have noticed how Chapter 13 can save your home from foreclosure. The side note after that is you can stop foreclosure before the process starts, not after. That’s on the downside. On the good side, in this form of bankruptcy you are paying on debts over a longer period so you can afford them, and you lose nothing.
Lawyer Myths
Yes, lawyers often make a high wage, but the best Georgia bankruptcy lawyers save you time and money, they do not take it from you. If you hire the right one, myths about overcharging, having a less experienced lawyer handle your case, or just treating you like a number will be gone.
What Happens in Court
Fear can be left at the door. Most bankruptcies are quick. If you hire an attorney, he or she will make it seem quick. For Chapter 7, you will rarely appear in court, your paperwork will be gone over, and you’re done. For Chapter 13, you do appear in court, but the process is still quite simple.
The Benefits of Filing
Chapter 7 bankruptcy is popular because it allows you to discharge quite a large amount of your debt. If you have a huge medical bill because you lost your insurance for a month, as an example, a bankruptcy can discharge this. And we mentioned that Chapter 13 has the bonus of keeping your home; if you’ve spent years paying on it, that’s likely a welcome benefit.
