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.

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.

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.

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Who Looks?
It used to be that banking, retail, government, security, and some sales companies screened you for prior bankruptcies. For some this is quite logical: you need to be able to handle money properly. For others, it doesn’t seem like common sense at all. After all, how does filing bankruptcy hurt you ability to sell a product?

However, more companies are screening workers with credit checks, just as more are looking for clean criminal records and no drug related activities. You may be the most experienced applicant, but are denied because you had a prior bankruptcy.

Getting the Job
So what can you do? It’s legal to to screen employees, but remember not all companies will do this. Sometimes it has no effect on your job interview. However, what you can do is be completely honest from the start. If you have a prior bankruptcy, perhaps one within the last 3 years, just be completely honest about this with your employer. Tell them you filed bankruptcy, why you filed, why it occurred, and how you are preparing for life after bankruptcy.

How long does it stay?
By law, employers can look over your credit reports. And remember that bankruptcy stays on your credit report for 10 years. So even if you have one from many years ago, it can still appear. This may seem like less of a blemish, but some companies will look down on it.

Can they still hire you?
Most companies will still hire you. The major hurdle is to not have a criminal record; a prior bankruptcy does not look as bad. After all, just in 2009 over 1 million people filed for bankruptcy.

Is it against the law?
According to the law, your employer can’t decide against you because of solely your credit report. However, the initial screening process for applicants can lead to problems. Prior to meeting with you, an employer can by law look at your credit history; the regulations on screening are less tight.

Final Notes
In some cases, you may not be able to run your own business prior to your bankruptcy discharge. So if you just filed Chapter 7 bankruptcy, you may not be able to start a business. Another problem is that you can sometimes lose promotion opportunities.

These may make bankruptcy look like more of a downfall. There are few cases where a bankruptcy is the sole reason for not getting a job, but it does happen. If you have some questions on the laws, on what employers can do, and what you can do, an experienced lawyer 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.