Question: I Have $100,000 in Medical Bills, Should I File Bankruptcy?

Answer: Perhaps. It depends on a few criteria. First, do you have assets worth protecting such as a home or other personal property items of value? If yes, then a straight bankruptcy, also known as a Chapter 7 bankruptcy is not going to be a preferred option. Instead a Chapter 13 bankruptcy, also known as a “repayment plan” is an option worth exploring between you and your lawyer (Read What is a Bankruptcy Repayment Plan?). A Chapter 13 repayment plan is a good option if you have the means of paying back the $100,000 medical bill debt over the course of 3-5 years. If you do not have the means to repay the debt, then a Chapter 7, or straight bankruptcy is a good potential option.

 To summarize, if you are considering your personal bankruptcy options for handling your medical bills, there are two options.

1. Chapter 7 (straight bankruptcy)
2. Chapter 13 (repayment plan)

A bankruptcy lawyer is going to be an excellent advocate as to which option, if either, is appropriate for your situation. Deciding to file is not easy, which is why you need to consider how filing for bankruptcy helps you with your short term financial situation and consider the affect it is going to have on your long term financial situation as well. For many with a $100,000 medical debt and no short term method of repayment, having either a straight bankruptcy or Chapter 13 repayment plan can be a means to eliminate debt. Of course the same could apply with lower medical debt amounts, such as $50,000 or higher medical debt amounts such as $250,000.

 - Related: Read High Medical Debts are Forcing Me Into Bankruptcy
 - Related: Read What Breast Cancer Bankruptcy Options Exist for Medical Debt?
 - Related: Read How a Bankruptcy Lawyer can Help with Breast Cancer Debt

Contact Berry & Associates About High Medical Bill Debt:

Have high debt from medical bills? Think bankruptcy is a good option for you? Contact Berry & Associates to review your options. With 10 metro Atlanta locations available, there is a Berry & Associates office near you. We specialize in Chapter 7 and Chapter 13 personal bankruptcy cases.

Know Your Rights:
As a citizen you are protected from harassing techniques that Atlanta debt collectors may use. There is actually a law that covers this specifically. It is called the Fair Debt Collection Practices Act. Also known as FDCPA, the Fair Debt Collection Practices Act is a federal law that prohibits specific, aggressive collection practices. Georgia has additional state laws that prohibit debt collection agencies from harassing techniques as well.

Related: Read What is the Fair Debt Collection Practices Act 

Is Bankruptcy a Good Option:
A Georgia bankruptcy lawyer can be an excellent advocate. Your bankruptcy lawyer will review your financial situation, and discuss various options on how to deal with creditors, including ensuring that harassing phone calls stop. If you are a good candidate for bankruptcy, he can help you prepare the correct documentation, represent you in court and help determine what type of repayment plan is appropriate (if you are filing Georgia Chapter 13)

 - Note: if you are filing Georgia Chapter 7, you will not have a repayment plan. Items that you can keep under Chapter 7 are different than under Chapter 13.

Stop the Harassing Calls:
If you are receiving threatening or harassing debt collection techniques, talking to a lawyer from Berry & Associates can be a great help. We will give you confidence in dealing with those threatening creditors and help ensure they stop contacting you. In some cases, legal action can be taken against agressive creditors that have violated FDCPA (Fair Debt Collection Practices Act).

How to Take Action Against Harassing Debt Collection:
Have harassing calls? Think bankruptcy might be a good option? Contact Berry & Associates and stop the harassing phone calls. Call us at 404-235-3328 or 1-800-414-3328.

Question: Is a 401k Plan Exempt in a Georgia Bankruptcy Filing?

Answer: Yes. In Georgia, several bankruptcy judges in Atlanta have upheld the decision that both 401k plans and pensions are exempt. Meaning you are allowed to keep these assets even if filing for bankruptcy in Georgia.

Why is a 401k Plan an Exempt Asset in a Georgia Bankruptcy Filing?
Retirement accounts such as 401k plans have a penalty if the account holder makes an early withdrawal. Atlanta bankruptcy lawyers have regularly been able to petition judges to keep 401k plan assets exempt. By keeping these assets exempt, a bankruptcy lawyer is able to help protect their client’s retirement and keep their 401k assets separate from being eligible to be used in a repayment plan.

Have a question about how to protect your 401k plan through a bankruptcy filing in Georgia? Considering a Chapter 7 or Chapter 13 personal bankruptcy filing? Berry & Associates has 10 bankruptcy law offices throughout metro Atlanta. The law firm has helped over 25,000 clients with personal bankruptcy cases including Chapter 7 bankruptcy and Chapter 13 bankruptcy.

Question: Does a person with $100,000 in credit card debt benefit more from Chapter 7 or Chapter 13 bankruptcy?

Answer: Depends. More information is needed to fully answer this question. It really depends on a person’s income, relative to their other assets and debts. There are some that could repay $100,000 in credit card debt over time, but these examples are more rare than frequent. A Chapter 7 or “straight bankruptcy” can be a good option for a person with limited assets and limited means of repaying. In these cases it might be easier to “walk away” because you don’t have alot to lose and cannot repay the debt even over the course of a few years. If you have 3-5 years to repay the debt, then working with a bankruptcy lawyer on a “repayment plan,” which is formally known as a Chapter 13 might be a good option. For those that have a higher means and want to protect certain assets such as a home, Chapter 13 can be a plan worth researching in more detail.

This example is not uncommon, but is higher than the average person filing for bankruptcy in Georgia. Many people file for bankruptcy with far less credit card debt than the example of a person with $100,000 worth of credit card debt. People typically have other debts other than credit card debt that result in them pursuing a potential bankruptcy filing. Depending on your income level and ability to repay, $50,000, even $25,000 worth of debt may be enough to consider either Chapter 7 bankruptcy or a Chapter 13 repayment plan.

Contact Berry & Associates for Free and Learn about Credit Card Debt Bankruptcy Options:

Think your credit card debt is high enough for a potential bankruptcy? As you learned in this entry you don’t need $100,000 in credit card debt to benefit from bankruptcy protection in Georgia. To explore what options exist and what is the right option for your situation, contact Berry & Associates. Wither 10 metro Atlanta bankruptcy offices available, we have experience lawyers at a local office near you.

Question: What is a Bankruptcy Repayment Plan?

Answer: A repayment plan is another way of describing a Chapter 13 personal bankruptcy plan. In this type of scenario you would work with a Berry & Associates lawyer to create a 3-5 year plan that would allow you to pay off your debts. At the end of the plan you would receive a discharge. This plan is often used when a person is trying to save a home from foreclosure.

Notables in a Chapter 13, aka a Bankruptcy Repayment Plan:

A bankruptcy repayment plan will stop the foreclosure process and allow you to catch up on past due mortgage payments over the course of 3-5 years. In a Chapter 13, you will also be able to get back in control of your finances and to ‘do the right thing’ when it comes to repaying your debt. Unlike a Chapter 7, a Chapter 13 bankruptcy can allow you to maintain possession of certain types of properties. These options will be discussed when you talk to your bankruptcy attorney.

Have questions about a bankruptcy repayment plan? Contact the lawyers at Berry & Associates to discuss your situation and if a repayment plan is the best option for you.

Chapter 7 Debts that CAN be Discharged

• Credit card bills
• Collection agency bills
• Rent (past due amounts)
• Signature loans (personal loans that are unsecured debt)
• Student loans (non-federally insured only)
• Past due utility bills

Chapter 7 Debts that CANNOT be Discharged

• Income taxes (individual) that are unpaid and assessed within the last 5 years
• Federal income taxes (filing no return or fraudulent return only)
• Luxury good credit card purchases within the last 60 days of filing (for amounts over $1,075, including services)
• Student loans (federally insured only)
• Alimony and child support
• Drunk driving conviction debts

Secured Debt (ex. Cars & Mortgages):
For those with secured debt such as a car loan or mortgage. You must decide if you want to keep the property. If yes, you must reaffirm the debt to take it out of bankruptcy. Make sure you discuss your goals for any collateral debt such as a car loan or mortgage with your Georgia Chapter 7 lawyer.

Contact Berry & Associates for questions about Chapter 7 debts that can be discharged. Berry & Associates maintains offices in 10 locations throughout metro Atlanta.

A recent blog discussed bankruptcy and breast cancer. In this blog the daughter of a breast cancer survivor outlines the physical and mental struggles that a person going through treatment observes. What is also outlined is the financial strain that cancer can have on a person’s finances. Not all survivors are going to be able to work, at least not in the same capacity as before.

How a Bankruptcy Lawyer can Help with Breast Cancer Medical Bills:
Not all persons that receive breast cancer treatment will be able to fully repay the cost. People appreciate what their doctors have done to them, but too often the math does not add up to fully repay. To make it more challenging a women’s earning power may not be as high as it was before she was diagnosed. This is where a bankruptcy lawyer might be able to help.

• If you have steady income and assets worth protecting (including secured debt), a Chapter 13 might be a good option
• If you do not have assets worth protecting, then a Chapter 7 (straight bankruptcy) might be a good option.

For a Chapter 13 to make sense you will need to have income. This is important because your bankruptcy lawyer will leverage your income and other debt levels into a repayment plan proposal among your creditors. For those that have no method of repayment, or do not have income, a Chapter 7 might be a better option. Breast cancer and the medical bills associated with it play a unique role, so consulting a bankruptcy lawyer and explaining your financial situation will be critical for him to help advise you on what type of options are available.

If you have questions about how a bankruptcy lawyer can help a person with breast cancer medical bills, contact us. Berry & Associates has 10 offices throughout metro Atlanta.

Is the bankruptcy filing rate down because the economy is better for those on Main Street, or is it because consumers considering bankruptcy cannot afford to file, or are not receiving enough pressure to tip them towards filing?

A recent article came out that featured a quote from Jack Williams. Williams is a Georgia State University law professor suggests that there is an “invisible class of debtors who can’t afford to file.” If this invisible class is true, then bankruptcy rates will go up as unemployment goes down and the economy recovers.

The logic behind this is that people will have more of value and an easier ability to file for bankruptcy. If this starts to take affect later this year, into 2012 and beyond, it is sure to keep Georgia lawyers busy with Chapter 7 and Chapter 13 filings.

Question: Is $50,000 Credit Card Debt Enough for Bankruptcy?

Answer: Perhaps. It depends on your ability to pay back the credit card(s). If you are able to repay back the $50,000 credit card debt over the course of a few years, then a personal bankruptcy might be avoidable. It will be tough work, but paying back your credit card without bankruptcy has other benefits to your overall financial health. In the event you cannot pay back the $50,000 in full, then there are other options available that you may want to discuss with your Georgia bankruptcy lawyer.

• Chapter 7 bankruptcy: A Georgia Chapter 7 is also known as a straight bankruptcy. If you are able to shed your debts and start anew, then this is an option worth looking at. People that consider a Chapter 7 often do not have a large number of assets that they are looking to protect, such as a house.
• Chapter 13 bankruptcy: A Georgia Chapter 13 is a repayment plan between you and your creditors. In this solution you work together to work out a payment plan that will be completed over the course of 3-5 years. If you own a home and are trying to avoid a foreclosure, this is a good option to consider. Same applies if you have other assets of value that you want to protect.

What is significant about this is the percentage that Lawrenceville is making up of foreclosure actions in the county. With over a third of all actions, Lawrenceville residents can surely benefit from additional knowledge about foreclosure and how bankruptcy law affects it. In particular Chapter 13 and how it the Georgia bankruptcy code affects it is something that any resident facing a potential bankruptcy needs to know about.

A Chapter 13 is a repayment plan that is established to settle your debts (at a reduced price) with your creditors. It is filed in court and is approved by a judge. A bankruptcy lawyer often helps with the plan. Contacting a lawyer is not required to complete a Chapter 13. If you have income (ie, capable of repaying) and you have assets worth protecting (home, car, etc), then Georgia Chapter 13 bankruptcy options are something that you need to consider learning about, especially if you are behind with your creditors, capable of repaying. It is expected that foreclosure actions in Gwinnett County will remain high, which makes understanding these Chapter 13 bankruptcy tips so important.

Berry & Associates has 10 Atlanta bankruptcy law offices throughout the metro, including a Gwinnett County office in Duluth, GA.

Gwinnett County Berry & Associates Duluth Bankruptcy Law Office
3235 Satellite Blvd.
Building 400, Suite 300
Duluth, GA 30096
Tel: (404) 425-5181