Chapter 13 Bankruptcy Changes Made in 2005 Bankruptcy Code

The Bankruptcy Code of 2005 had some changes for filing Georgia Chapter 13. This blog post will show you some key changes made concerning your eligibility for bankruptcy, what counseling requirements you have, and more specifically how your repayment plan in Chapter 13 will be made.

Chapter 13 Changes
While more bankruptcies are Chapter 7, because of the change in eligibility, more are filing Chapter 13. Chapter 13 has some advantages for Georgia filers, but before we go over that let’s focus on your repayment plan. Most importantly is the change in disposable income. In a Chapter 13 repayment plan, you are allowed money for necessary expenses, but any disposable income you have has to go to your repayment plan. Now in a repayment plan, you show how you intend to pay back creditors, including some payments in full and some for less than the value of the debt.

It can be complicated to note the change in disposable income. However, it means you may have to live with less money.  Your disposable income must be calculated using allowed expenses by the IRS. This is based on your actual income for the past six months. In other words, the government is allowing you less money to live on. You have to subtract expenses from your own money.

Counseling in Chapter 13
You must go through credit counseling before filing a Chapter 7 or Chapter 13 plan. This counseling is supposed to show you if filing bankruptcy is really needed. At the end of your Chapter 13 plan, you must take another counseling class; after this, you can be discharged from debt.

Lawyers
Lawyers are unfortunately more expensive due to the changes in bankruptcy code. It takes them longer to help you successfully file. When you consider the main advantages of filing, the added expenses, though not easy on the pocket book, is worth it. A lawyer can explain the process much better than anyone, especially if you get a local one experienced with eligibility requirements and the court process.

Successfully Filing Georgia Chapter 13 Bankruptcy
If this all sounds like a legal book, you can always ask your lawyer to clear up the confusing parts. Hiring a bankruptcy lawyer is a must. If you can successfully file Chapter 13 in Georgia, you can save your home, car, other assets, and save money on certain debts. In some cases, Chapter 7 is better, but not all are eligible. Contact an experienced Georgia bankruptcy lawyer to get started today.

Filed under: Bankruptcy Information — Tags: , , , , — jmalewitz @ 9:31 pm

The Changes from the New Bankruptcy Law for Georgia Chapter 7 Filers

In 2005, a new bankruptcy law came into effect with some key changes you need to be aware of in order to successfully file. This blog guide focuses on the changes for Georgia Chapter 7 filers. If you have questions about filing Georgia bankruptcy you need to speak with an experienced lawyer.

Main Points
In short, the new bankruptcy law has made it more difficult to file Chapter 7 bankruptcy, with the option of filing with a Chapter 13 plan instead. This is based on how much you make. Prior to the new law, you had the option between Chapter 7 and Chapter 13. The most common form to use was Chapter 7, because you could literally discharge thousands of debt and lose nothing. Chapter 7 is still very common, but less so. There were also some changes made to how Chapter 13 filers, mainly based on giving you less disposable income to live on.

How do you know if you’re eligible?
Under the new bankruptcy laws, you must be below the average income for a family your size. So for Georgia filers, if you make more more than the median income for Georgia residents, you would have to file Chapter 13.

Accordingly, the more you make the less chance you have of being eligible. Here is a quick list as of April 2010 of the current median income.

Family Size 1 – Median Income $40,546
Family Size 2 – Median Income $55, 061
Family Size 3 – Median Income $60,887
Family Size 4 – Median Income $68,258
Add $7,500 for further family members.

If you are below, you are eligible for Chapter 7; if not, you must file Chapter 13. This obviously has been the law for many years, but many are unaware of the significant changes involved. So the higher your family income, the less chance you have of being eligible. You will have to go through a “means test” when you file, so if you’re unsure that can help.

What This Means for Costs
Because filing bankruptcy is now more difficult, lawyers are adapting their prices to the new time issues. It can take much more time to successfully file. While Chapter 7 bankruptcy is usually a quick process, the new means tests for eligibility make the paperwork somewhat more time consuming. It’s still very valuable to hire an experienced Georgia bankruptcy lawyer.

Getting Help
A professional lawyer can help you navigate these laws. Yes, the costs may be more, but don’t forget the benefits of filing, even if you can’t file Chapter 7. In Chapter 7, the majority of your unsecured debts, such as credit and medical debts, can be discharged completely. If you pay your lawyer $2,000 to successfully file, and discharge $50,000, you’re ahead by a lot of money. If you still have questions, a Georgia bankruptcy lawyer can help you with points such as eligibility, and also help you file Chapter 13 if needed.

Filed under: Bankruptcy Information — Tags: , , , , , , — jmalewitz @ 9:29 pm

Why Atlanta Bankruptcy is Worth It

Filing bankruptcy anywhere has big benefits. For Atlanta residents in financial trouble, filing can truly change your life. How?

Saves Money
We go over the ways bankruptcy can save you money on Georgia Debt Law all the time, but it bears repeating. After all, the many debts you have can be discharged, the many assets you own saved, and all by filing. However, this is not always your best option. Yes, in terms of saving money, it may be the best decision you can make, but you can only file bankruptcy so often, it takes time to file, and sometimes you have alternatives. If you’re unsure, a free consultation with an Atlanta bankruptcy lawyer can help you decide.

Stop Creditors
Creditor harassment is another big benefit. You can technically stop it without filing bankruptcy, but if you want to be free of both the debt and the phone ringing all the time, filing bankruptcy can help. They have no reason to contact you after you file. If they continue, refer them to your lawyer. This may seem minor until you start getting many, many calls on a daily basis.

It Gives You a Second Chance
Financially, a Chapter 7 bankruptcy can definitely give you a second chance. You were hurt, and received a $50,000 hospital bill because you have no insurance. Or you lost your job and had $20,000 in credit debt which keeps on getting bigger. The reasons for why are many, but you can get a second chance by filing. It’s about improving your financial future. Consider that, if you just pay the interest on a $25,000 debt for a few months, for that price you can file with the courts and hire a bankruptcy lawyer – and be free of the debt. This is how bankruptcy helps.

Not Easy, But Timely
In Chapter 13 bankruptcy, you can also get a needed second chance, and a timely one at that. Georgia itself has some scary numbers when it comes to foreclosures, especially in the Atlanta area. The good news is the economy is rebuilding, but if you want to keep your car, home, as well as other properties and assets, Chapter 13 bankruptcy can literally buy you the time needed to pay off debts. Also, other debts you have are not always paid in full, so you save time and money.

An Atlanta Bankruptcy Lawyer Can Help
How do you get the ball rolling if you want to file Atlanta bankruptcy? You need a lawyer. Contact 5-10 and ask for a free consultation. The prices will vary, but focus on availability and experience more than price. You want one capable of helping, but of course not out of your price range.

Bankruptcy is worth it. It may not be in the cards for you, but you won’t know until you start crunching the numbers with an experienced lawyer. Bankruptcy may be the best possible decision you can make.

Filed under: Bankruptcy Information — Tags: , , , , — jmalewitz @ 9:29 pm

Obligations for Georgia Chapter 13 Bankruptcy Plan

In Chapter 13 bankruptcy, you are not always paying all the debts you owe. You quite often pay only a fraction of your unsecured debts. There are other debts you can and likely should pay 100% of, and this guide points them out.

This blog guide notes your obligations under the law, gives some essential tips for successfully filing Georgia Chapter 13 bankruptcy, helps save time and assets, and explains how to get help from professionals.

Forms to File
In Chapter 7 bankruptcy, you first prove you are eligible to file, then list your current income, property, expenses, and your debts. It’s very similar in Chapter 13 bankruptcy. You will be proving that you’ve filed taxes, that you have the income necessary for a repayment plan, what expenses you expect, and most importantly what debts you will be paying on. You will also be creating a payment plan which can work for you over the course of 3-5 years; this is how you pay on your debts. If this sounds complex, remember you are not alone in this; a Georgia bankruptcy lawyer can help.

How much do you have to pay?
Some of your debts must be paid in full, along with the filing fees. Chapter 13 costs $274 to file with the courts, the same for all Georgia residents and U.S. citizens.  You also must pay your trustee a portion of your monthly payment. Georgia bankruptcy lawyer fees are more than worth it, but you need to hire the right one. These can cost from $1,000 to $2,000.

There are other payments you have to make in full, such as alimony, child support, taxes, and wages if you run a business.

What debts should you pay?
Some debts are optional, but really should be paid in full. If you want to keep your home, pay 100% on the mortgage. You will likely be saving money on some debts, so it may be possible to pay in full. It’s the same with your car and other valuable assets you need.

Unsecured Debts
You can pay anywhere from nothing to 100% of your unsecured debts – debts you owe such on credit cards and medical bills. This will depend on your current income. If you have disposable income, it must go into your repayment plan, as designated at the beginning.

What You Need to Know About Disposable Income
After your main expenses such as home and car payments, money left over is considered disposable income, and must go to paying debts.

Getting Help
Georgia Chapter 13 bankruptcy has the advantage of being able to pay on your most needed assets, while saving money on unsecured debt. In order to reap the rewards of a successful filing, you need an experienced Georgia bankruptcy lawyer.

Filed under: Bankruptcy Information — Tags: , , , , , , , — jmalewitz @ 1:51 pm

Why File Atlanta Personal Bankruptcy? And How To Get Help

Personal bankruptcy for Atlanta residents has clear advantages over its alternatives. Maybe bankruptcy sounds like you’re throwing everything away. However, few lose anything in bankruptcy in terms of assets, most can be free of tens of thousands in debt, and many can stop foreclosures on Atlanta homes.

Hiring a Lawyer
You will need to consult with an Atlanta bankruptcy lawyer immediately. Just as no two people are alike, no two bankruptcies are alike. You can read all the blogs and articles possible, but still lack the ability to prove why you deserve bankruptcy, how the laws work, how best to discharge the most debt, and what happens if you’re not eligible. An experienced Atlanta personal bankruptcy lawyer saves you valuable time and helps you clear debts and keep assets.

Filing Individual or Joint Bankruptcy
Individual bankruptcy and joint bankruptcy are different in that if you’re married, it can be advantageous to file together. If you are not married, it doesn’t matter. However, if you and your spouse owe debts, filing together can protect you from collections, stop creditor harassment, and give you a fresh start. Joint bankruptcy can also save you money in filing fees and in hiring a lawyer, and protect your spouse from collections if only you file. In some cases, individual bankruptcy is preferred even if you are married, but you should consult with your lawyer.

Are you eligible?
For Atlanta bankruptcy filers, you are eligible based on the median income for all Georgia residents. This is in terms of Chapter 7 bankruptcy eligibility. If you make more than the following numbers, you have to file under Chapter 13.

Family Size 1: Annual Income $40,691
Family Size 2: Annual Income $55,258
Family Size 3: Annual Income $61, 104
Family Size 4: Annual income $68,502

Chapter 13 eligibility is the same for all Atlanta residents as it is for the entire country. Secured debt, debts like your home and car, cannot exceed $1,010,650. Unsecured debts, such as credit and medical debt, cannot be more than $336,900. In the majority of cases, you are eligible for at least one form of Atlanta bankruptcy.

Chapter 7 Advantages for Credit Card, Medical, and Mortgage Debt
Chapter 7 bankruptcy is the prime solution when it comes to handling debts you simply cannot afford. Say you have $100,000 in medical debt; you went to the hospital with no coverage and were charged for several weeks of time; in this case, Chapter 7 can truly save you from having to pay this immense debt.

Chapter 13 Advantages – Foreclosure and Beyond
Atlanta and Georgia in general have been hit hard by home foreclosures.  Chapter 13 bankruptcy can stop this. An experienced lawyer can help you successfully file, save you from losing your home to foreclosure as well as stop collections on your car among other valuable assets, and give you the time to pay back these debts.

Filed under: Bankruptcy Information — Tags: , , , , , — jmalewitz @ 3:02 pm

How Georgia Joint Bankruptcy Can Help You

When it comes to joint bankruptcy and individual bankruptcy, it’s always smart to consult with an experienced Georgia lawyer with experience.

This blog guide can help. We’ll be going over exactly what joint bankruptcy is, the differences with individual bankruptcy, and how joint can help you and your family get a fresh start. Still, you should consult with a lawyer; laws can be complex.

The Basics of Georgia Joint Bankruptcy
For families, joint bankruptcy can save you a lot of time and money. It’s simply you and your spouse filing bankruptcy together. For Georgia home owners fearing foreclosure, filing Chapter 13 can help. For those who have large credit and medical debts, Chapter 7 is smart. In some cases, you may not be eligible – another reason to consult with a lawyer. If you and your spouse make too much, Chapter 7 may not be an option. If you owe too much, hundreds of thousands in secured and unsecured debt, you may not be eligible for Chapter 13. But for most Georgia residents, you can file at least one, save tens of thousands of dollars, and get a fresh start.

The Differences with Georgia Joint Bankruptcy
Georgia and all states have similar laws when it comes to joint bankruptcy, the only difference being the actual eligibility factors. If you file together, you can save time by filling out one set of documents. You can also save money on the filing fee – you need only file once together, and save $274-$299 depending on which form you file. You can also save your spouse from owing on debts you have together; creditors can keep calling if only one of you file.  And finally, you can save money with a Georgia bankruptcy lawyer.

How It Helps You
We went over some of the big advantages. In more detail, since there is less documentation and only one court hearing, it’s logical you save some time and money. You may not save thousands on your Georgia bankruptcy lawyer, but it can save the lawyer time so he or she might charge less. The minor filing fee may in fact be big – $274 saved for Chapter 13 and $299 saved for Chapter 7, not pennies.

Filing bankruptcy in general saves you far more than it costs you. If you have a $100,000 medical bill, Chapter 7 can discharge it. If your Georgia home you’ve put time and money into is in danger of foreclosure, Chapter 13 can save it with the “automatic stay” and allow you to make affordable payments on it.

Getting Help
This is a lot of information, but be mindful you need an experienced lawyer to help you. Bankruptcy law is not rocket science, but hiring the first lawyer you find, or the cheapest, can cost you more than it saves you. Consider several lawyers, go over rates, time, and experience, and get your deserved fresh start financially.

Filed under: Bankruptcy Information — Tags: , , , , , , , — jmalewitz @ 3:37 pm

What If You Miss a Chapter 13 Payment?

There are many roads to Chapter 13 bankruptcy. You may find the advantages such as keeping your home and car make paying some or all of your debt the best option. Or maybe you make too much money for Chapter 7, and want to get a repayment plan you can afford.

We hear many questions on Georgia Chapter 13 bankruptcy, especially what happens if you miss a payment. Here are some answers.

If You Miss a Payment
If you miss a Chapter 13 payment, you still have options. If you take no action, the court will dismiss your case. But, you can modify the payment plan so you can better afford it, or apply to have payments suspended for several months. A Georgia bankruptcy lawyer can be invaluable in this part of the process. If you don’t have an experienced lawyer, hire one immediately. This can save your repayment plan from being dismissed.

Can you cancel a Chapter 13 plan?
Chapter 13 is voluntary – you can quit any time you want. You just won’t have all your unpaid debts discharged. If you feel it’s not working for you, it’s relatively simple to cancel the case.

You Lose Nothing
In most cases where you miss a payment, you are not in definite danger of your plan being dismissed and losing all assets. As long as you modify the payment plan or suspend it, you are safe. Courts are designed to help you with creditors, not take all your money and offer no real guidance.

Can you file again?
If your plan is dismissed, you can file again (and not wait years). This occurs if your debts have not been legally discharged. The bankruptcy laws won’t stop you from filing again. If you’re discharged, the regular bankruptcy laws are in effect and you have to wait some time to file again.

Advantages of Georgia Chapter 13 Bankruptcy
If you miss one payment, you won’t be alone in this process. Hopefully you’ve hired an experienced Georgia bankruptcy lawyer who can help you in and out of court. This process takes some time: Chapter 7 takes months, Chapter 13 years. That means you definitely need a professional lawyer to guide you through this process. You can reap the rewards of Chapter 13, saving your home, car, and other assets from creditors, while paying in installments you can afford.

Filed under: Bankruptcy Information — Tags: , , , , , — jmalewitz @ 9:12 pm

The Automatic Stay and Your Car in Georgia Chapter 13 Bankruptcy

One common fear home owners have is foreclosure, especially in Georgia where foreclosures are so common. Next on the list is your car, likely how you get to work and/or school, and maybe how you drive your children to school. It’s obvious that a car can be just as important as your home: without it, you may be out of transportation options.

One fear car owners have is seeing a tow-truck pull up in their drive way – the feared repo-man. They take your car because you missed payments. What’s next? Before this happens, you can file either Chapter 7 or Chapter 13 bankruptcy. Chapter 13 is much better for keeping your car; you sometimes lose it in a Chapter 7 discharge.

For Georgia home owners, Chapter 7 may also be dangerous. You can lose both your home and car if you can’t make any payments. Though you do get time with the “automatic stay,” you may risk losing them.

With Chapter 13, Georgia home and car owners also get an automatic stay, which halts all collections. You do in fact continue to make payments in some forms, namely for your home and car, but with the debt repayment plan you can make it more manageable.

How can you keep your car?
The automatic stay does give you protection, but for your car you will still be making payments. In some cases, this is not possible, so it might be better to be completely free of the debt with Chapter 7. If you can come up with the money to make payments, you can keep the car. The payments will be much more affordable.

What if you lost it before bankruptcy?
Technically you can get your car back if it was recently repossessed. Say for example 3 weeks before you filed bankruptcy, your car was repossessed. As long as it was recent, and you can come up with enough money to make payments, you can keep the car. This is where an experienced Georgia bankruptcy lawyer can help.

What if you miss a Chapter 13 payment?
You can modify your payment plan or suspend it if you miss some payments or are incapable of continuing. Some believe that once you miss a payment, the deal is over. Not so, because you can work with your lawyer and Georgia bankruptcy court to get back on track.

How much does it cost?
A Chapter 13 bankruptcy will cost $274 to file with the Georgia courts. Hiring a good lawyer will cost you more, usually a flat rate or hourly rate. It’s definitely worth it once you see the advantages – saving your home, car, and other assets.

Who can help?
If you fear losing your car or perhaps more importantly your home because of missing payments, you need to act quickly. This is not to say rush into the process, but the earlier you get the Chapter 13 bankruptcy process started, the better. You need a good lawyer in all bankruptcy cases.

Filed under: Bankruptcy Information — Tags: , , , , , , — jmalewitz @ 3:29 pm

If You Need Help in Georgia Bankruptcy Court

Bankruptcy gives you a second chance, and if you’re like the many Georgia residents who’ve suffered through a variety of income and debt problems – from medical debt skyrocketing to loss of a job – then you likely want to start taking some immediate action. You want that second chance, right?

You can get it by consulting with a professional Georgia bankruptcy lawyer, who can do a variety of things (given you choose the right one).

-A Georgia bankruptcy lawyer can explain your best options, such as choosing between Chapter 7 and Chapter 13 bankruptcy.
-A lawyer can stop creditor harassment completely, either by directing calls to their office or by writing a letter to the creditors.
-A lawyer can save you thousands if not tens of thousands by discharging medical, credit, and home debt with a Chapter 7 bankruptcy.
-A lawyer can save your home from foreclosure by helping you successfully file Chapter 13 bankruptcy, creating a debt repayment plan you can afford.
-A lawyer can advise you on budget plans; how to handle taxes, divorce, and other legal issues when bankruptcy is ongoing; and your options if you need a second bankruptcy in the future.

There is much more to what an experienced Georgia bankruptcy lawyer can do. In Georgia bankruptcy court, he or she can represent your best interests.

Chapter 7 bankruptcy can be quite complex. Do you qualify based on your income? What if you have a home and car, will you lose those? What debts will be discharged in Chapter 7, and when is Chapter 13 better?

These are all good questions. Yes, not all qualify for Chapter 7 based on income; if you make more than the median income for Georgia, you have to file Chapter 13. If you have a home or car, these possessions may be in danger; if you can pay on them, you may prefer Chapter 13.

In Georgia bankruptcy court for Chapter 7, you’ll be showing proof of income, what assets you have, and what debts you have. This is a very simple process if you hire the right lawyer. It can really take the pressure off the hearing, which you have little part in if you hire a lawyer.

For Chapter 13, it’s a longer process, making hiring the right lawyer even more important. Typically, a Chapter 13 debt repayment plan takes 3-5 years. If you fear missing payments or not being able to afford your plan, you can discuss your options with your lawyer.

The best part about hiring a lawyer is that he or she will quite often save you far more money than they charge. They also give you relief when it comes to any legal issues. When it comes to choosing between representing yourself in court, hiring a cheap lawyer, or hiring an experienced lawyer, be mindful of all that’s involved and how important this step is for you.

Filed under: Bankruptcy Information — Tags: , , , , , , — jmalewitz @ 4:07 pm

Credit History, Budgets, And Rebuilding After Bankruptcy

You filed a Chapter 7 bankruptcy and discharged debts. Or you filed Chapter 13 bankruptcy with the intention of saving your home and assets from foreclosure. Of course, there are many ways to look at these steps, both positive and negative. Your credit history will suffer. You will have trouble getting loans. However, you can rebuild your credit report, get a secured credit card to do so, budget so you can later get loans, and quite often start fresh. This blog guide shows you how.

Reasons to File Chapter 7
The most common reasons to file Chapter 7 bankruptcy are because of credit card and medical debt. Filing can discharge thousands if not tens of thousands of monies owed which you simply cannot afford. Chapter 7 helps give you a fresh start in a matter of months.

Reasons to File Chapter 13
Chapter 13 bankruptcy is very different than Chapter 7, and less common. However, by filing you can maintain your major assets, such as home and car. If you have debts which cannot be discharged in Chapter 7, you can pay on them in manageable amounts with Chapter 13.

Rebuilding Credit History
One of the best ways to rebuild your credit after bankruptcy is by getting a secured credit card. This can prove to creditors that you can maintain credit. It will also improve your credit just like paying on a regular credit card. How do secured credit cards work? You can choose the amount you want the credit to be, and pay it directly to the bank in order to get it. If you paid $1,000, you’d get a $1,000 credit line. This may sound pointless, but you get to keep the money, and then use the card and pay on it as you would a normal credit card.

Budget After Bankruptcy
If you want to avoid filing bankruptcy again, it’s time to start budgeting. This means looking over both income and expenses. If you’ve been spending more than you’re making, for example, you can see clearly where you need to tighten up. You may opt to buy the lower priced car, less items you really don’t need, eat out less, and only charge with a secured credit card with the goal of buying once your credit is better.

Save Money
You should also look for other ways to save money. A penny saved is a penny earned, and though that’s a cliché it’s true. The best way to stop a future bankruptcy is to keep money in your account, not spending it all your paycheck. Many file Chapter 7 bankruptcy because of a loss of job. If you prepare for losing a job by keeping several months to half a year in income saved, you can avoid future trouble. Yes, saving six months of salary may seem impossible, but it’s the best safety net you have. And it’s a goal worth having.

Life After
This may all sound like leading a money-tight life. You can’t buy items beyond your means, you only use money you have, you budget, you save months in salary, and so on. However, if you look to the reasons you had to file bankruptcy, you can make plans to avoid it ever happening again. And there’s good news: you can soon enough buy the more expensive car, the better home, the more expensive entertainment items. These are good goals to have.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , — jmalewitz @ 12:52 pm


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