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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: Atlanta Chapter 13 bankruptcy attorney, Chapter 13 Title 11 United States Code, Chapter 13 bankruptcy in Georgia, Georgia bankruptcy attorney, Georgia bankruptcy lawyer — jmalewitz @ 9:31 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: Atlanta Bankruptcy Attorney, Atlanta Bankruptcy Lawyer, Atlanta Chapter 13 bankruptcy attorney, Atlanta foreclosure, Chapter 13 bankruptcy Atlanta, Chapter 7 bankruptcy Atlanta — jmalewitz @ 3:02 pm

Major Benefits of Atlanta Chapter 7 Bankruptcy

Filing bankruptcy in Georgia is unfortunately a bitter reality. Georgia has been in the top 5 for bankruptcies since the mortgage crisis began. What happened was sub prime mortgages, where people could no longer afford to pay on homes they likely should not have ever bought, forced many to start filing for help. Because of this, the economy was hurt, and there have been millions of bankruptcies since 2006.

There are some basic statistics on who’s filing for bankruptcy. The average filer is about 38, about half who file are couples, women file alone more than men, filers are actually better educated than most others, the majority have lost a job, and almost half have had major health problems. The numbers point out this isn’t only happening to one group, but to many. Both single men and women are filing, but a small percentage more are single women. Though job loss is a prime reason in many cases, the key result of many Chapter 7 bankruptcies in Atlanta and Georgia is a serious health problem which leads to medical bills.

That may all be a lot to swallow. Unfortunately, we are not quite through all of it, but in Georgia and other states jobs are starting to be created. More jobs mean more income which in turn means a better economy. Still, filing for bankruptcy is far from giving up. In fact, it’s about stepping up, deciding you want to rebuild, and taking the advantages.

What are the main advantages of Chapter 7 bankruptcy?

Medical Bills
If you got sick or someone you love got hurt, and you had no insurance, it’s very common to have tens of thousands in medical bills. Many have no medical coverage, and going to the emergency room or staying in a hospital for weeks can empty your checking account quickly. Chapter 7 bankruptcy can eliminate this debt in a matter of months.

Credit Card Bills
Just like medical bills, credit card debt can be discharged with a Chapter 7 bankruptcy. Many Atlanta residents had no problem with credit card payments until they lost jobs or were hurt. If you owe more money than you can ever pay, Chapter 7 bankruptcy is very smart.

Mortgage Debt
The bad news is you may lose your home in a Chapter 7 bankruptcy. The good news is that you can either negotiate to keep it or file for bankruptcy and discharge any debt you have. If you discharge the debt, you will likely lose the home and have to find a new residence. You do get some time before that happens. If you decide you want to file bankruptcy and keep your house, you can negotiate with the creditor and make payments on it.

No Job
If you have no job, Chapter 7 bankruptcy is very smart. You have little to no income coming in, so you rarely can pay on debts. Chapter 7 can discharge them and give you a fresh start. When you start working again, your paychecks can be used for something other than credit, medical, and mortgage debt.

It’s Cheap
Finally, it costs you a fraction of the amount for an Atlanta Chapter 7 bankruptcy than your debts actually are. You hire an experienced lawyer, and that does cost you money. You need an experienced bankruptcy lawyer who can make your case for Chapter 7 case successful. They cost about $1,000 to $2,000. Then you pay a court fee of $299. That’s it. You can have $50,000 in debt and be free of it for a fraction.

Filed under: Bankruptcy News, Economic News — Tags: Atlanta Bankruptcy, Atlanta Bankruptcy Attorney, Atlanta Bankruptcy Lawyer, Atlanta Chapter 13 bankruptcy attorney, Atlanta foreclosure, Chapter 7 bankruptcy Atlanta, Georgia bankruptcy — jmalewitz @ 2:48 pm

Tips on Atlanta Joint Bankruptcy

Joint bankruptcy is an important subject because of the major differences with individual bankruptcy, and that so many couples in Georgia have questions on whether joint bankruptcy is right for them and their families. If that sounds like you – if you’re on the fence about joint bankruptcy – this post can help.

What is individual bankruptcy?
Individual bankruptcy, still important to consider even if you and your spouse want joint bankruptcy, is the most common form. It’s the basic form of bankruptcy you feel as a single person, either with Chapter 7 or Chapter 13 bankruptcy. In most cases, debt and/or foreclosure are the key reasons for filing. For Atlanta residents with higher than average incomes, filing under Chapter 13 is becoming more common as Chapter 7 has new rules for eligibility based on income.

What is joint bankruptcy?
Joint bankruptcy is simply you and your spouse filing together. You can file either Chapter 7 or Chapter 13. In some cases you are not eligible for bankruptcy, or at least joint filing. If you or your spouse filed for individual bankruptcy a few years ago, that person will not be eligible to file again. You need to wait 7 years between bankruptcies, and you or your spouse will have to file individually. Also, the median income for Georgia residents determines Chapter 7 eligibility. If you make too much money for a family your size, even if it’s just the two of you, you won’t be eligible. If on the other hand you have hundreds of thousands in secured and unsecured debt, you may not be eligible for Chapter 13.

What differences are there?
With joint bankruptcy, the process can be much easier than filing separately. You hire one lawyer, pay one fee to him or her, pay one fee to the court instead of two, and you don’t have to worry about you or your spouse being stuck with debts if only one files. Individual bankruptcy is not necessarily bad; it just saves time and some money if you file together. In some cases, filing together is not an option.

Why file Atlanta joint bankruptcy?
Filing together has some major pluses, as just pointed out. What we didn’t mention was the documentation. Every bankruptcy, no matter if it’s Chapter 7 or Chapter 13, takes time to file for. If you can combine your documents, putting both your bankruptcies together, you can save time. That may seem minor. You can also save $299 for filing Chapter 7 and $274 for filing Chapter 13; small, but it’s money. You will appear in Georgia bankruptcy court together. And you do not have to worry about your spouse who didn’t file being harassed to pay your debts (or the other way around).

If you’re still unsure if filing jointly is smart, contact an Atlanta bankruptcy attorney today.

Filed under: Bankruptcy Information — Tags: Atlanta Bankruptcy Attorney, Atlanta Bankruptcy Lawyer, Atlanta Chapter 13 bankruptcy attorney, Atlanta foreclosure, atlanta joint bankruptcy, filing joint bankruptcy, Foreclosure, Georgia bankruptcy, Georgia bankruptcy lawyer, georgia bankruptcy tips, Liquidation, tips on joint bankruptcy — jmalewitz @ 2:49 pm

Options to File Bankruptcy In Atlanta Georgia

You have many options when it comes to bankruptcy – which form of personal bankruptcy, how to handle creditors, how to handle debt not discharged or paid, and perhaps often ignored but still important, what bankruptcy lawyer to hire. This blog guide gives you the key options for filing bankruptcy in Atlanta, Georgia.

What Form?
Well, we go over the forms of bankruptcy often on this blog, but if you’re new to Georgia Debt Law, you may wonder exactly what your options are. You have Chapter 7 or Chapter 13 bankruptcy. Each form has different positives and negatives, which an experienced Atlanta bankruptcy attorney can help you with.

Chapter 7 is used over 75% of the time by Atlanta residents; it discharges major debts such as credit and medical debt. Chapter 13 is your only other option, but it’s benefits can be supreme – save your home from foreclosure and keep your other assets.

No matter what you choose, you may wonder how creditors should be handled.

Creditors Do What?
Technically, after you file bankruptcy creditors have no more reason to contact you. In some cases, they might appeal your bankruptcy, still hoping to get their money. Most of the time these attempts fail, but be mindful if the appeal is made. You can, even before bankruptcy, write letters to your creditors asking them to stop contacting you. By law they have to. If you file, and they continue to call, refer them to your Atlanta bankruptcy lawyer.

What Debts are Discharged?
In Chapter 7 bankruptcy, the biggest debts discharged are credit card, medical, and mortgage debt. Some debts cannot be discharged, including alimony, child support, and back taxes.

Chapter 13 bankruptcy is different, as you’re only discharged from the debts after your debt repayment plan is finished.

What Lawyer Should You Hire?
You want to file Atlanta bankruptcy, but when it comes to lawyers experienced in Georgia law, you’re just out of options. Hiring a lawyer is neither a race to find the first one nor the search for the cheapest. There are many experienced Atlanta bankruptcy lawyers who show value, because, after all, by doing this you’re saving far more money and assets than you lose.

Yes, hiring an experienced lawyer can be hard. You have many options in Atlanta. You do likely have a budget – most bankruptcy lawyers charge flat rates for helping you file successfully. Query 5-10, compare rates and experience, and give one a try.

Advantages of Hiring an Atlanta Chapter 13 Bankruptcy Attorney

If you file with the Georgia Northern District Bankruptcy court, you’ll see how complex the process can be. Who can help?

No matter your personal bankruptcy choice — Chapter 7 or Chapter 13 — you might wonder how a lawyer actually helps. With Chapter 7, it’s clear that the 341 meeting, where you’re asked questions and creditors can optionally participate, is about gathering information. If you fear you’ll lose assets, you may consider filing Chapter 13 Atlanta bankruptcy.

Why file Atlanta Chapter 13?
Since Atlanta as a city has very high foreclosure rates in the past years, Chapter 13 is being recommended by expert lawyers to help residents save their homes. Simply put, Chapter 13 bankruptcy is the best way to save your home. For Atlanta residents, there are details.

You must be eligible. You must create a repayment plan. And you will have to appear in court to explain your situation.

According to the U.S. government, “Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $360,475 and secured debts are less than $1,081,40.” Secured debt would be debt backed up with collateral,such as your home. Unsecured debt is the opposite: you are backing it up with nothing.

The debt management plan includes details on what creditors you owe money to, how you intend to pay, among other things. This will be how you intend to stay solvent on paper.

What does an Atlanta Chapter 13 lawyer do?
Say you want to know more about the process of Atlanta Chapter 13 bankruptcy. Who do you call? You can find information online, but you really need an experienced attorney to help with your case. For example, you may not be eligible for Chapter 13, but Chapter 7 is wise (or the other way around). Also, in Chapter 13, usually in about 30 days you have a 341 meeting with the U.S. trustee. An experienced attorney can help you in in the meeting and make sure your proposal for debt management is sound.

The attorney can do far more than answer questions. A good one will help you with the proposals, documentation, requirements, and save you time and money doing so.

How will creditors act?
Creditors are technically still going to get their money in most cases. If you have difficult creditors, an experienced Atlanta Chapter 13 attorney can handle them for you. They do have the option to appear with the trustee at the 341 meeting, but most don’t. You will rarely have any more dialogue with creditors you owe money to after any form of personal bankruptcy, usually during it too.

How do you get started?
To get started, you should hire an experienced attorney, prepare all necessary documentation, pay the fee for filing, and create a proposal for your debt management plan.

Is an Atlanta Chapter 13 bankruptcy lawyer really important?
Finally, the question may come up: can you do all this alone? Yes, you can. Even if you have legal experience, the paperwork, 341 meeting, creditors, and dangers of making mistakes, however, are far too great to ignore. Atlanta Chapter 13 bankruptcy will change your life, and is important for your financial future. Hiring an experienced attorney makes the process much easier.

Filed under: Bankruptcy Information — Tags: Atlanta Bankruptcy, Atlanta Bankruptcy Attorney, Atlanta Bankruptcy Lawyer, Atlanta Chapter 13 bankruptcy attorney, Atlanta foreclosure, Chapter 13 Title 11 United States Code, Chapter 13 bankruptcy Atlanta, Chapter 7 Title 11 United States Code, Foreclosure — jmalewitz @ 12:29 pm

Process for Chapter 7 Bankruptcy – What Does the Trustee Do?

What bankruptcy trustees do, how they effect your bankruptcy, and how you can handle one can be complex. That makes it important to get the right attorney to help you through this process. You can hire an attorney: online, in the phone book, and through referrals. For Georgia residents, you can go to the State Bar of Georgia, or search “Georgia bankruptcy lawyers” online.

Now, let’s answer some key questions.

What is a trustee?
The trustee is a court-appointed individual who will pay your creditors on what you owe them. The trustee, and potentially the staff, will be charged with the Georgia court to examine your papers, and liquidate nonexempt property.

What is nonexempt property?
Exempt property you get to keep. Nonexempt property can be sold by the trustee. In some cases, your home may be exempt, depending on its value. Other times, valuable assets like your home and car can be considered nonexempt and sold to pay off creditors.

What will you lose?
Studies on bankruptcy clearly point out how trustees often sell nothing you own. Most or all the property is very often considered exempt and will not be sold. If you own a lot of assets, especially expensive ones, you may consider filing under Chapter 13 bankruptcy to keep your property.

What do creditors do?
The creditors will stop calling you after you file bankruptcy. There is no point. In some cases, they can appeal the case, especially if an automatic stay is issued. What is an automatic stay? That’s where the seizing of assets such as homes can be delayed by law.

Typically, creditors have few powers once you file Chapter 7 bankruptcy. On the other hand, in Chapter 13 bankruptcy,they stand to be paid back for your debts.

What’s Chapter 13 bankruptcy?
Since we’ve mentioned Chapter 13 several times, let’s highlight it. Chapter 13 bankruptcy is different than Chapter 7 in that you pay back debts. Also, a Chapter 7 bankruptcy takes months, while Chapter 13 takes 3-5 years. The advantage with Chapter 13 is if you fear losing expensive assets or your home going into foreclosure, it can effectively save stop it.

What’s better?
Chapter 7 and Chapter 13 each have their own advantages, and more often than not the choice is based on need. If you file Chapter 7, you can eliminate large amounts of debts. If you file Chapter 13, you can save all your assets.

The Final Step
Handling a trustee and choosing between Chapter 7 and Chapter 13 bankruptcy is cause to hire a professional. This means a Georgia personal bankruptcy attorney — who is the most valuable asset you have in bankruptcy.

Filed under: Bankruptcy Information — Tags: Atlanta Bankruptcy Attorney, Atlanta Bankruptcy Lawyer, Atlanta Chapter 13 bankruptcy attorney, chapter 7 liquidation, Georgia bankruptcy trustee — jmalewitz @ 12:58 pm

How Georgia Chapter 7 and Chapter 13 Bankruptcy Work – Fees

One of the biggest questions on bankruptcy is how much it costs–all the fees for court documents and lawyers. The actual filing fee with the court is really quite small, but attorneys vary on how much they charge you. Sometimes you get what you pay for … sometimes you pay high and get a lacking service… and other times you get lucky and find the right fit for you.

Chapter 7 bankruptcy costs $299 to file with the court. For all the debt you can expect to be discharged at a minimal loss of assets, that’s a bargain. And if you can’t pay that, the court may be able to work with you in other ways.

Chapter 13 bankruptcy costs $274 to file with the court. The Chapter 7 and Chapter 13 bankruptcy fees with the court are the same across every state, including for Georgia bankruptcy filers.

So $299 for Chapter 7 bankruptcy and $274 for Chapter 13 bankruptcy–but the lawyer fees cost a fortune, right? Not always! You can expect fees to vary in terms of the experience of the bankruptcy lawyer. The worst thing you can do is choose to file with the first lawyer you find; shop around.

How Georgia Chapter 7 Bankruptcy Works
As with all other states, you file a petition with the bankruptcy court in your area in Georgia. You must also file with the court several other key documents, including schedules of assets, income and expenditures, financial affairs, and a schedule of executory contracts and unexpired leases. For individual debtors, you have more documentation to file, including proof you went to a credit counseling agency and developed a repayment plan.

These things can get complicated, and you have to see the advantage of hiring an expert in all this process. Before we talk about that more, let’s go over how Georgia Chapter 13 bankruptcy works.

How Georgia Chapter 13 Bankruptcy Works
A Georgia Chapter 13 bankruptcy begins by filing a petition with the bankruptcy court in your area. You should, even before you do this, make sure you are eligible to file; if you have too much debt you might not be.

You take similar steps in Chapter 13 as Chapter 7 bankruptcy. This includes schedules of assets and liabilities, current income and expenditures, financial affairs statement, and more. Again, you must also get a certificate from a credit counseling agency and prove you created a repayment plan.

Filing Documents and Other Things a Georgia Bankruptcy Lawyer Can Help With
There are dozens if not hundreds of other things you really need to know. The best option is to work with a professional so you can do this right the first time. In many cases, you save money by hiring the right Georgia bankruptcy lawyer. The rates of bankruptcy lawyers vary from $1,000-2,000 for filing, but look for quality and personal contact in the process, make some phone calls and do research, then make an informed decision.

Filed under: Bankruptcy Information — Tags: Atlanta Bankruptcy Attorney, Atlanta Bankruptcy Lawyer, Atlanta Chapter 13 bankruptcy attorney, Chapter 13 Title 11 United States Code, Chapter 13 bankruptcy in Georgia, Chapter 7 Title 11 United States Code, Chapter 7 Bankruptcy in Atlanta, Foreclosure, Georgia bankruptcy law, Georgia bankruptcy lawyer, Liquidation — jmalewitz @ 1:42 pm

Job Losses Continue To Rise, Expect More Bankruptcies

Georgia’s Labor Department reported Thursday that jobless claims in the state surged 81 percent in January over numbers for January 2007. The department’s numbers indicated that 120,139 people in the state filed for unemployement benefits.

Experts expect that the rise in jobless rates will result additional bankruptcy filings.

“Consumers are under great financial stress, with no immediate end in sight,” said Samuel J. Gerdano, American Bankruptcy Institute (ABI) executive director, in an article in the Dallas Morning News. “We expect the upward spike in personal bankruptcies to continue in 2009.”

According to the ABI, consumer bankrupcy filings rose 33 percent in 2008 over numbers from the previous year. A poll conducted by the ABI predicted that bankruptcy filings would jump at least 35 percent over the 1 million consumer bankruptcies filed in 2008.

If job losses continue to mount, the spike will likely be in Chapter 7 bankruptcy that will clear most unsecured debt. Without income to make payments on a Chapter 13 repayment plan, there is little chance that consumers in the Atlanta metro area would qualify.

Filed under: Bankruptcy News — Tags: Atlanta Bankruptcy Lawyer, Atlanta Chapter 13 bankruptcy attorney, Chapter 13 bankruptcy Atlanta, Chapter 7 bankruptcy, Chapter 7 bankruptcy Atlanta — Rob @ 12:15 pm

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