When Should You Consider Filing Georgia Personal Bankruptcy?

A common question during tough economic times is, when should you file bankruptcy? The question is especially valid in Georgia, with plummeting home values, foreclosures, job losses, and credit card debt. These are in fact some of the biggest reasons you might file personal bankruptcy in Georgia, if not any state in the country. This guide begins the process for you to help make the choice. It’s an important one, so read on.

Bills You Can Pay
If you are paying only the minimum on most if not all your bills, personal bankruptcy is a good option. Many can only afford to pay the interest on credit cards or other bills, falling deeper and deeper into financial troubles. If you simply know it won’t get better, consulting with a Georgia bankruptcy lawyer can help make the decision for you.

Budgets Won’t Work
If it won’t get any better, if it’s impossible to create a budget to get out of debt in a matter of years, Georgia bankruptcy can give you a fresh start. It’s not giving up financially; it’s a move you are allowed to make as citizen and what you’ve been paying taxes for. If no foreseeable budget can get you out of this problem, bankruptcy is much better than losing all your assets and properties.

Home Foreclosure, Apartment Rent
If foreclosure papers have been filed, are about to be filed, or if you cannot pay the rent on your place, bankruptcy may be your best option (note it’s not your last option). Sometimes you can actually save your home by working with a Georgia bankruptcy lawyer, especially if you file before the home goes into foreclosure. If, when looking ahead, you feel the apartment or home you’re renting will be too much with your debt, you may file just to protect yourself from being quite literally homeless.

Lost Job
Losing a job is not the end of the line. In fact, just in 2010 more jobs have been created than in some time. However, in the short term you may have a serious financial struggle. You may be fine on bills, then your laid off and getting unemployment benefits, which can be quite low in comparison to your paycheck. If you lose a job, Chapter 7 personal bankruptcy can discharge your debts and give you a fresh start. You can also file Chapter 13 personal bankruptcy in order to protect your assets.

Other Financial Problems
Losing a job is not the only financial problem Georgia residents face. The biggest reason for filing bankruptcy is not job loss, foreclosure, or credit card debt; it’s medical bills. Sometimes you may suffer through an illness and have no coverage or minimal coverage; paying tens of thousands to the hospital may be out of the question. This is another example where personal bankruptcy, specifically Chapter 7, can discharge this debt for you.

If you’re still unsure if bankruptcy is your best option, consulting with a legal expert can help.

Filed under: Bankruptcy Information — Tags: , , , , , , , — jmalewitz @ 1:26 pm

Before Your File Georgia Chapter 7 Bankruptcy, Read These Tips

Tens of thousands filed bankruptcy in Georgia in 2009, and thousands more are getting a second chance financially by filing in 2010. Filing bankruptcy in Georgia has many advantages, especially if you’re in over your head financially. The problem many have is a lack of income and benefits. Some have no jobs, others no insurance, still more are in over their heads with credit debt. These tips may sound familiar. If you’re ready to make a move, contact a lawyer. But you need to hire one who can truly help.

Hire the Right Lawyer
We go over the many reasons you need a lawyer quite often on Georgia Debt Law. Unfortunately, many forgo hiring a lawyer because of a lack of income. It’s understandable: maybe you have no job, maybe you just received a huge credit card or medical bill, and paying money to a lawyer is impossible.

However, we all have ways of getting some money. Legally, you can get loans from friends and family, sell certain exempt assets, sometimes even negotiate with the lawyer on a payment plan. A lawyer is so valuable because he or she can help you fill out all forms correctly, handle any creditor problems you may be having, help you keep your assets, and most importantly discharge the majority of your debt. It’s easy to say, “you have to hire a lawyer,” but in reality, you may not have the means. If this is the case discuss your options with some qualified lawyers. Just making the call is a big first step.

If You Have No Job
If you have no job, filing Chapter 7 bankruptcy is a no-brainer. You have no income to be taken. You can prove you cannot afford a Chapter 13 repayment plan. What happened was the Bankruptcy Code of 2005 made it more difficult to file Chapter 7 bankruptcy nationwide. If you make too much money, you may be forced to file Chapter 13 and fund a repayment plan. However, if you have no job, it’s almost a good thing. You can clearly prove you cannot pay off these debts.

If You Have No Other Income
Also, if you have no other income coming in, say from disability or through a retirement plan, you are likely eligible for Chapter 7. Even if you have some money coming in, you are quite often eligible for Chapter 7. In Georgia, it’s based on the median income. If you are above, you have to file Chapter 13. Most with no jobs and minor income are eligible.

The Best Reasons to File
Filing can stop creditor harassment, give you a financial second chance, save assets from being taken, save you tens of thousands of dollars in credit or medical debt, and all for the cost of a $299 court fee and some lawyer expenses.

Foreclosure and Georgia Chapter 7
Filing Chapter 7 in Georgia is not always your best option. If you do have some money coming in, Chapter 13 may be better. In fact, it can save your home from foreclosure. Why? If you file Chapter 13 before the foreclosure papers are filed, an “automatic stay” is put on all your debts and stops any foreclosure. You can then renegotiate.

Credit Card and Medical Debt
Before you file Georgia Chapter 7 bankruptcy, consider all your options. If you have immense credit and medical debt, you can be free of it. These are the best reasons to file. Chapter 7 bankruptcy is a solution for those struggling financially. If you have no insurance, paying off a $100,000 medical bill may be impossible. If you made some financial mistakes and are in debt for tens of thousands on your credit cards, you may be in a hole impossible to dig out of. In these instances, filing Chapter 7 bankruptcy in Georgia can give you a fresh start.

Filed under: Bankruptcy Information — Tags: , , , , , , , — jmalewitz @ 1:52 pm

If You Have No Job and Want to File Chapter 7 Bankruptcy

If you have no job or any other income coming in, and you’re heavily in debt, you may wonder about your options. The good news is that lacking a job is actually a good thing when it comes to Filing Chapter 7 bankruptcy. Why?

If you have a high paying job, you are often not eligible for Chapter 7 bankruptcy. For example, if you make over $40,456 in Georgia as an individual, you are not eligible for Chapter 7 bankruptcy. This number varies from state to state. Let’s go into more detail on how the means test, your job status,and Chapter 7 bankruptcy work.

No Job is Good
As noted, if you have no job, you are likely eligible for bankruptcy. If you have no other income coming in, the majority of the time you are eligible. Even if you do have a job, the lower paying it is the greater the possibility you will be eligible to file. If you make too much, you have to file Chapter 13 bankruptcy.

The Means Test
The means test is how this eligibility is factored in. It’s important to note that if you have a high paying job but lose it, you may not be eligible for several months. The means tests works like this: your past income for the previous six months is compared to the median income for other Georgians, so if you make $60,000 as an individual, you are over. Now, if you lose your job, it’s wise to wait several months before applying for Chapter 7 relief. This is because your prior income will be factored in, even if the job is gone.

What happens if you’re not eligible for Chapter 7? First off, because of the 2005 changes to Bankruptcy Code, Chapter 13 bankruptcy, which is a debt repayment plan, is now more common for those with higher incomes. If you make too much for Chapter 7, you’re likely eligible for Chapter 13.

Georgia Chapter 7
Filing Chapter 7 bankruptcy has many advantages, namely the fact you can discharge a lot of debt. Even with unemployment benefits, having bills come in for credit cards and medical fees can be daunting. Chapter 7 has the ability to discharge these debts at little cost to you; most who file Chapter 7 in Georgia and elsewhere lose nothing.

If You Need Help
If you have no job, how can you afford to file bankruptcy? Well, Chapter 7 bankruptcy only costs $299 to file, which may seem like a lot, until you see you can discharge tens of thousands. Lawyer fees are typically more, and this can be tough if you have no job. However, it’s crucial to get a specialist in bankruptcy law so you can successfully discharge the most debt and keep all your assets. And though lawyers are never free, an experienced one can save you more money than he or she charges.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , — jmalewitz @ 1:10 pm

5 Tips on Declaring Bankruptcy in Atlanta

Atlanta has been hit hard by the economic problems our country has faced. But there is a light. It’s not always in your best interest to declare for bankruptcy. However, for Atlanta residents in debt and home owners statewide, it can lead to some enormous rewards.

Bankruptcy is too often looked at as the last resort. You can be free of your debts, you can save your home, you can survive until your next job—but you need to know both how to declare bankruptcy and when to. This blog guide focuses on helping Atlanta residents successfully declare bankruptcy.

Do you need bankruptcy?
Bankruptcy is not always the best decision. If your phone is ringing off the hook because of collections against you, there are other ways to stop them. However, when compared to debt counseling and debt management, bankruptcy puts more power in your hands. You can save a lot of money, assets, and headaches by filing. One benefit is stopping collections against you, but not just the calls; you can also discharge the debt completely in many cases.

Do you need a lawyer?
If you file Atlanta bankruptcy, hiring is a lawyer is in your best interests. Legal help does not come freely, but trust us, it’s more than worth it.

Since 2005, bankruptcy lawyers have had to raise their rates; this is because of new Bankruptcy Code which makes it harder to file. However, you can still hire one for pennies on what you can discharge or save. A lawyer can help you through the entire process.

Collecting Your Information
Before filing, you want to have all your information in order. This all depends on what form of bankruptcy you’re filing, Chapter 7 or Chapter 13, and if it’s an individual bankruptcy or joint one. In any case, you’ll need most of your financial info, records of secured and unsecured debts, tax returns for the last two years, deeds, car titles, and any loan documents. Your lawyer can help with these steps.

Filing Bankruptcy Forms
A lawyer can help you accurately fill out bankruptcy forms too. These forms can be somewhat difficult to fill out without some experienced help. Once you fill them out, you’ll have to pay a court fee for which forms of bankruptcy you file.

What Happens Next
If you’ve successfully collected your information, filled out all the forms, and received plenty of help with filing from your lawyer, it’s time to reap the rewards. Atlanta Chapter 7 bankruptcy can discharge the majority of your debts in a matter of months; Chapter 13 can take 3-5 years, but you can save a lot of assets. No matter your reason for filing, financially you will be in a better positions.

Filed under: Bankruptcy Information — Tags: , , , , , , — jmalewitz @ 4:12 pm

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


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