Your Right to File Chapter 13 Bankruptcy

Just as with Chapter 7 bankruptcy, when considering whether or not to file Georgia Chapter 13 bankruptcy, you need to be aware of your rights. Most all Georgia residents have the right to file Chapter 13, unlike Chapter 7. When can’t you? How do these rights help you? What if you can’t afford Chapter 13? This blog guide can help.

Your Rights
Unless you owe too much money, there are no limits on whether or not you can file Chapter 13 bankruptcy. The only point to be aware of is when your actual debts are in the hundreds of thousands or more. Your rights include the ability to file, to stop creditor harassment, to halt collection efforts, to avoid foreclosure, to stop repossession of other assets, and avoid lawsuits based on money you owe.

Eligibility
If you have $336,900 or more in unsecured debt, or if you have $1,010,650 or more in secured debt, then you are not eligible to file for Chapter 13 bankruptcy. In these cases, you need to speak with a lawyer. These numbers are the same under federal law for all Georgia residents and U.S. citizens.

How does Chapter 13 help?
Georgia has been hit hard by foreclosures and repossessions. Common problems include loss of jobs, high medical debt, and credit card debt. In many cases, Chapter 7 can help you more. If you have a low income job or no job at all, and your debts are in the tens of thousands, you likely should file Chapter 7.  This is because you probably cannot afford a Chapter 13 repayment plan.

On the other hand, if you make too much money you may not be eligible for Georgia Chapter 7. And there are many times when a Chapter 13 bankruptcy is best. This includes times when you do make enough money, you’re in danger of losing your home to foreclosure or car to repossession, or if you have debts you can’t discharge. You can’t discharge all debts with Chapter 7; if you have tax, alimony, and child support debt, you can’t discharge these. Because you can pay on any debts with Chapter 13, and because it can effectively stop a foreclosure before it begins, many Georgia residents consider this their best option.

How does it work?
You should first hire an experienced bankruptcy attorney. Unless you’re an experienced lawyer yourself, there are rarely times when you can handle the complexity of a Chapter 13 bankruptcy. Once you hire a lawyer, you’ll be filing with a local Georgia bankruptcy court. This is where you begin. Along with the petition, you’ll be showing proof of income, assets you have, and debts you owe. You will then pay the court fee of $274, the same everywhere for filing Chapter 13, and the process will begin. A judge can put an “automatic stay” on your case, which will at the least delay foreclosure if not stop it entirely, as well as stop collections against you, including any repossessions. This buys you time to save your home, car, and other assets.

By filing Chapter 13, you are agreeing to pay some if not all your debts over a manageable period, typically 3-5 years. Unlike other debt repayment plans, these will be overseen by the court.

While this process does take longer than a Chapter 7 bankruptcy, it can help you manage more debts and save your home. It’s your right to file Chapter 13 bankruptcy. If you are ready to begin, or have more questions, contact an experienced Georgia bankruptcy lawyer.

Filed under: Bankruptcy Information — Tags: , , , , , , — jmalewitz @ 2:37 pm

When is Chapter 13 Bankruptcy The Best Option?

Chapter 7 bankruptcy is used about 75% for filers nationwide, with the other 25% being used on Chapter 13 bankruptcy. Why? Chapter 7 can be more effective in discharging large unsecured debts. In many cases, Chapter 7 is the better option. However, there are times when filing Chapter 13 is in your best interest. This blog guide shows you why.

Eligibility
As this guide is designed for Georgia bankruptcy filers, it’s important to note eligibility for Chapter 7 bankruptcy differs from state to state. However, Chapter 13 bankruptcy is governed by federal law and eligibility is the same nationwide. The most common reason that Georgia filers choose Chapter 13 is when they are not eligible for Chapter 7. If you make more than the Georgia median income, Chapter 13 is your only recourse.

Save Your Home
There are other times when filing Chapter 13 is much more in your best interest. The most common reason is the difference between secured and unsecured debt. Secured debt, such as your home and car, can be taken back if you fail to pay by taking the asset. Unsecured debt, on the other hand, includes medical and credit card debt. For secured debt, if you fear losing assets such as your home, Chapter 13 is very smart. For unsecured debts, debts you simply cannot afford, Chapter 7 can discharge these debts in a matter of months.

The focus here is on when Chapter 13 is better. Say you fell behind on your Georgia home mortgage payments. In this case, Chapter 7 does not help you; you can discharge the mortgage but you will only buy a few weeks to stay in the home. With Chapter 13, you can stop the foreclosure proceeding before it begins, effectively saving the home which you likely put time, money, and love into. That’s overlooked by many filers: if your home is on the line, Chapter 13 is very effective.

Other Advantages of Chapter 13 Bankruptcy
There are other times when you cannot discharge a debt. For example, you can’t discharge tax and student loan debt in Chapter 7. Instead, you can file Chapter 13 and pay these debts in more affordable installments. Also, if you have nonexempt property which will be lost in Chapter 7, you can again keep the property and pay installments.

Clearly there are reasons to consider both. However, remember that you have both options when it comes to filing. If you’re still unsure, contact a Georgia bankruptcy lawyer. An experienced lawyer will quickly be able to see the best choice for you to make.

Filed under: Bankruptcy Information — Tags: , , , , , , , — jmalewitz @ 3:27 pm

Creditors and Filing Georgia Bankruptcy

By nature, creditors are nice when paid, but once you start missing payments, the relationship can go downhill. Of course, it makes sense that creditors want their money, just like you want your money from an employer. However, many creditors and debt collection agencies treat you inappropriately. It’s something you deserve to be angry about if they’re calling you night and day, being rude, and generally ruining your day.

Is this really that big of a problem? Yes, creditor harassment is a very big problem. In fact, 2009 saw creditor harassment not only continuing, but on the rise. Even in 2010 creditor harassment is still a major problem. Studies pointed out that debt collection agencies and creditors in general caused more complaints in 2009 than in 2008. This is common during tough economies, you might think, but it doesn’t make it any better. For one, creditor harassment to most extents can be illegal. There are tens of thousands of complaints to the Federal Trade Commission every year. For example, in just the first half of 2009, the Federal Trade Commission Reported 45,000 complaints about debt collection agency practices, a significant increase over the first half of 2008.

What are creditors doing to cause complaints? It may seem obvious – calling people like you night and day. Contacting your work. Contacting outside family members. Calling you into the night or very early in the morning. Some are even contacting consumers asking for payments on things they never bought. Still more are saying people owe more money than they really do.  In the worst of cases, creditors are acting like some form of government or law enforcement agency, threatening seizure of assets like homes and cars if no payment is made.

So there are a lot of reasons for complaint. What can you do? If you’ve truly fallen behind in debts, you may think paying them gets creditors off your back. In fact, you may be paying on the wrong debts or nonexistent debts. You will never be arrested for debts, unless a court orders it (which is quite rare). If they threaten to take your wages, it’s usually beyond their ability to do so unless they win in court against you. If they threaten to take your home, there is some truth in this statement. Technically, creditors can take you to court and obtain a lien on your property; that’s if they win in court; chances of that are slim.

You can stop creditor harassment in a variety of ways. If you really have a lot of debt, filing Georgia bankruptcy is one move to make. But don’t do it just because you have creditors harassing you. If that’s the case, you can write the creditor a letter asking them to stop contacting you; by law they must agree to this. Bankruptcy has many advantages, and stopping creditor harassment is one. Creditors will have no reason to call you anymore once the courts are involved; if they continue to call you, refer them to your lawyer.

Creditor harassment works because they strike fear in you. Take back control of your life. If you’re unsure of your rights, contact a lawyer.

Filed under: Bankruptcy Information, Bankruptcy News — Tags: , , , , , , , , , , — jmalewitz @ 1:57 pm

How to Work with a Georgia Chapter 13 Bankruptcy Attorney for Success

How do you successfully file for Chapter 13 bankruptcy in Georgia? With an attorney’s help is the best way.

Why? Filing any form of bankruptcy requires a lot of work. Not only do you need someone to submit all the documentation, but you also need someone to handle the in court case, help you decide your options, and educate you on the process.

Chapter 13 bankruptcy, unlike Chapter 7, is a lengthy process. Chapter 13 typically takes 3-5 years before it’s over. Filing under Chapter 7 takes a matter of months.

What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy is more common than ever because of new bankruptcy laws, as if you have a median income too high–over about $40,691 in Georgia for a single filer–you are not eligible for Chapter 7 bankruptcy. Many, however, want Chapter 13 bankruptcy.

Chapter 13 bankruptcy is a debt repayment plan which buys you time to pay back major bills. For example, if you are behind on your mortgage payments, falling into credit card debt, and your options of paying them in the short term are dismal, Chapter 13 can help. This is where the length of the process is advantageous. The reason Chapter 13 takes 3-5 years is that’s the time allotted to you to pay back outstanding debts.

Advantages of Chapter 13 Bankruptcy
Since residents of Georgia sometimes make too much money to file Chapter 7, it’s clearly important to know why Chapter 13 bankruptcy is still a good option. Say you are behind on your bills, you make over $41,00 a year as a single resident of Georgia, creditors are harassing you, and you fear home foreclosure. Your best option may be to file for Chapter 13, mainly because you can buy time to pay back outstanding bills, save your home, stop any wage garnishments, and effectively stop creditor harassment of all kinds.

Hiring a Georgia Bankruptcy Attorney
Since these laws change and can get complex, it’s clearly just as important in Georgia Chapter 13 to hire an attorney as Georgia Chapter 7. A professional attorney can see what you’re eligible for, tell you your best options, help you save your home from foreclosure, stop all creditor harassment, and give you the peace of mind of being able to pay bills.

If you’ve never been in court, you might fear standing in front of a judge and pleading your case. While Chapter 13 you must be present, with a bankruptcy attorney working with you, what you’re needed to do is minor.

Clearly, filing bankruptcy is a big step. And just as you would not handle a major lawsuit against you alone, you also should hire a professional Georgia bankruptcy attorney for help. This could impact your finances for the rest of your life.

Filed under: Bankruptcy Information — Tags: , , , , , , , , — jmalewitz @ 12:42 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: , , , , , , , , , , — jmalewitz @ 1:42 pm

Advantages of Filing Chapter 7 and Chapter 13 Bankruptcy Before Georgia Foreclosure

Filing for Chapter 7 or Chapter 13 bankruptcy is too complicated for many individuals to do by themselves, but the benefits of bankruptcy can be had by all. While it can be a complex and difficult process, in most cases Chapter 7 and Chapter 13 bankruptcy do more than give you a fresh start–they give you a second chance.

As noted in this blog post on Georgia Debt Law, if you’re facing foreclosure then  bankruptcy is often your best option. At a minimum, you have extra time to find a second residence. At best, it buys you time to save your home.

Just what bankruptcy should you file and how does it work?  First, let’s go over exactly what a foreclosure is.

Georgia Foreclosure
You fall behind on your mortgage payments, and the lender isn’t working with you on a payment plan. Maybe you have too many other bills, such as medical fees or car payments, or maybe you lost your job or someone close to you passed away. No matter the reason, the lender can take steps to bring foreclosure on your home, selling it at an auction and paying back your debt through the sale.

There are many alternatives to filing bankruptcy, but in terms of foreclosure, if you’re behind on payments sometimes there is little else you can do. If the lender is unwilling to negotiate, if you have bad credit, or if you have no other place to go if you lose this home, bankruptcy is almost a must.

Georgia Bankruptcy
Filing bankruptcy in Georgia usually calls for Chapter 7 or Chapter 13 bankruptcy. The good news with Chapter 7 bankruptcy is that it buys you extra time to find another residence (if you have few other places to go). This can be several months if not longer, as by law the courts can protect you.

How? If you file Georgia bankruptcy, there is the “automatic stay” which usually gives you 3-4 extra months extra time. You will likely lose your home if you file Chapter 7 bankruptcy in Georgia, but 3 months is a lot of time to figure something out.

On the other hand, you may want to fight this to the end. The best option if you want to keep your home–if you want to fight for it–is to file Chapter 13 bankruptcy in Georgia.

Advantages of Chapter 13 Bankruptcy in Georgia
Chapter 13 bankruptcy can save your home. You will need enough income to meet your current mortgage payment, so do what you can to get that. After, you will set up a repayment plan over a few years time–usually 3-5 years. This means you’ll pay back the debt over a longer period. It  does call for bringing in more money, but Chapter 13 bankruptcy is the foreclosure solution.

Hiring a Georgia Bankruptcy Lawyer
Your best choice is to discuss this with a Georgia bankruptcy lawyer. Did you know, for example, you may be able to cancel your 2nd and 3rd mortgages? It’s not a dream, with the right assistance you can. And people successfully file for bankruptcy in Georgia to stop or delay foreclosures. All you  need now is to choose a lawyer who can help.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , — jmalewitz @ 8:08 pm

Changes to US Bankruptcy Law for Georgia Residents

Chapter 7 and Chapter 13 bankruptcy law changed in 2005, and this guide gives you a solid overview of what advantages and disadvantages for you. If you’re considering filing bankruptcy, but have never filed before, you may not be aware of the recent changes. If you’ve filed bankruptcy before, there are changes if you filed before the 2005 changes.

This guide helps clear up misconceptions on Chapter 7 and Chapter 13 bankruptcy, what they mean to you if you need to file, and how you can handle yourself both in court and with a professional bankruptcy attorney.

Chapter 7 Bankruptcy for Georgia Residents
The changes to the laws make it harder for Georgia residents and residents of all states to file for Chapter 7 bankruptcy. Now, some will not be allowed to file Chapter 7 bankruptcy, and be forced to use a  repayment schedule with Chapter 13 bankruptcy. Also, you must now work with a credit counseling agency before you can file any form of bankruptcy, as well as counseling on budgeting and debt managements before your debts can be cleared.

There is now restricted eligibility for Chapter 7 bankruptcy. Before, you could choose what form of bankruptcy you preferred–if you wanted Chapter 7 or Chapter 13 bankruptcy. If you have a high income and want to file Chapter 7 bankruptcy, you might make too much to be able to file.  This can be complex, but in a nutshell if you have a current monthly income much higher than the median income for households of your size in Georgia, you can’t file. If you are less than or equal to the average figure, you can file Chapter 7 bankruptcy/

If you have enough disposable income to pay a repayment plan for your debt, you will not have the option to file Chapter 7 bankruptcy in most cases. This is where hiring a professional bankruptcy attorney in Georgia can help.

Counseling For Bankruptcy Help
Another new law which took effect in 2005 is the counseling requirements for any individual who wants to file for Chapter 7 or Chapter 13 bankruptcy. For Georgia residents, this means you must complete counseling with an agency approved by the U.S. Trustee’s office. You can find these online at usdoj.gov/ust and look for the credit counseling link.

The good news is that the counseling is recommended. You do not have to follow the counseling agencies repayment plan. You do have to submit this to the court. You will also have to attend another counseling agency session at the end of your bankruptcy, to learn personal finance management.

The Importance of an Expert Georgia Bankruptcy Attorney
Attorneys are now more important than ever if you want to successfully file Chapter 7 or Chapter 13 bankruptcy in Georgia. With the new laws you have to navigate, it’s easy to make mistakes in documents, filing, court hearings, and knowing all your rights when it comes to creditors. A professional bankruptcy attorney in Georgia can help you not only successfully file but get a fresh start financially.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , , , — jmalewitz @ 12:00 pm

Filing Chapter 13 Bankruptcy In Atlanta

If you are looking for a way out from under the crushing weight of your debts, filing a Chapter 13 bankruptcy may be the best option for you.  Chapter 13 bankruptcy provides a fresh start for a debtor by assisting them in developing a plan for the payment of their debts. 

In Atlanta, a Chapter 13 bankruptcy filing requires that the debtor construct and file a plan for the payment of their current debts based on their current income.  The payment plan must last at least 3 years and may last for up to 5 years. 

This plan is filed with the bankruptcy court, which is a federal district court.  In Georgia there are three different bankruptcy district courts:  the Georgia Middle District Court, the Georgia Southern District Court, and the Georgia Northern District Court.  Cases in Atlanta are handled by the Georgia Northern District.

In order to ensure that your payment plan is approved by the Georgia bankruptcy district courts, you should seek out the assistance of a qualified Atlanta Chapter 13 attorney.  This professional has assisted hundreds of individuals in developing payment plans for Atlanta Chapter 13 bankruptcy and knows what the bankruptcy court is looking for in an approved plan. 

As a result of changes made several years ago to the Chapter 13 plan outline, the debtor is required to provide detailed listings of the amounts that creditors will be paid, the interest rates that will apply to these debts, the names of the creditors to be paid, and other very specific information. 

It is difficult for a debtor to design a plan that will be approved without the assistance of a qualified Atlanta bankruptcy lawyer.

Filed under: Bankruptcy Information — Tags: , , — admin @ 9:40 am

Payment Plan In Chapter 13 Bankruptcy

Chapter 13 bankruptcy in Atlanta Georgia will require that you complete a detailed payment plan for your qualified debts.  This plan will then be filed with the federal bankruptcy court that represents your area.  The plan is administered by an officer of the court, known as a bankruptcy trustee.

After you and your legal representative have filed your payment plan, either the court trustee or any of your creditors may file an objection to your plan.  These objections will be heard at the 341 Meeting of Creditors.  This meeting will also be an opportunity for the trustee to ask any questions they may have about your plan.

In some bankruptcy court districts, the trustees have developed a checklist of questions that the debtor will be required to sign as part of the court record.  The debtor should bring two forms of ID to the 341 meeting – one photo ID and one identification card including Social Security number.

Once the payment plan is approved by the court, creditors are prohibited from collecting their debts independently while the plan is effective.

The plan will specify that payments be withdrawn from the paycheck of the debtor.  These payments will then be turned over to the trustee, who will administer the payments as specified in the plan.

Chapter 13 bankruptcy in Atlanta, Georgia is a viable option for individuals who are facing mortgage foreclosure or car repossession.  This type of bankruptcy enables someone who may have simply fallen behind on payments the opportunity to catch up and begin to rebuild their financial future.

Filed under: Bankruptcy Information — Tags: , , — admin @ 9:30 am


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