Georgia Debt Law ::. Bankruptcy Blog » Chapter 7 bankruptcy

How Much is Your Atlanta Bankruptcy Attorney Worth?

jmalewitz — Wed, 09 Jun 2010 20:56:09 +0000

Your Atlanta bankruptcy attorney can be worth far more than you pay them, especially if you hire the right one. Why are time better than others? Why not save money on one and hire the cheaper attorney? What should you look for in terms of experience?

Before you even hire a bankruptcy attorney, you should have a plan. You need to be direct in asking things like cost, experience, and availability. You should not hire the first one you find, or solely based on a reference. An attorney can be far more valuable if they have experience.

The Costs
How much will it really cost to hire a bankruptcy attorney? Typically, your paying a flat fee and sometimes an additional hourly fee for extra work. The flat fee is very typical, and called a retainer. This should be negotiated so you can afford it and based on the attorney’s experience. Most fair and experienced Atlanta bankruptcy attorneys will charge from $1,000 to $2,500 for a Chapter 7 or Chapter 13 case. They are far more valuable than this. When you think about it, you can discharge tens of thousands in debt. If you have a mortgage you want to get out of, some extremely high medical bills,a and high credit card debt, you could save tens of thousands of dollars for Chapter 7 bankruptcy. Atlanta Chapter 13 is preferable if you want to keep your home; attorneys are valuable here as one can help save your home from foreclosure.

The Time
While your attorney won’t spend hundreds of hours on your case, his or her experience will shine by making that time more than worth it. They can make sure your eligible, the most debt is discharged, and that the entire court process is smooth. Typically, your attorney will handle all in court work, while you only have to appear briefly.

Creditors
If you’re facing creditor harassment, how much value would you put on ending it? Likely, very much. Technically creditor harassment should end after bankruptcy, but during bankruptcy you can refer them to your attorney. He or she can handle them from now on.

The Knowledge
Attorneys are blessed with skills honed in higher education, but the best knowledge comes from hard work and experience. No single article can teach you all you need to know about bankruptcy, but an experienced attorney can. Their knowledge makes them worth far more than you’re paying them.

Mistakes
Scared you won’t file correctly? If you are unsure if all the documents are correct, if you’re really eligible, or on how the process works, an experienced Atlanta attorney can help.

Success
The best part is that you can either successfully discharge thousands if not tens of thousands of debt with Chapter 7 bankruptcy, or save your home, car, and other assets from being taken with Chapter 13 bankruptcy. The right Atlanta attorney is most valuable when they can save you money.

Before You Hire A Georgia Bankruptcy Attorney, Read This

jmalewitz — Wed, 05 May 2010 18:23:02 +0000

Filing personal bankruptcy can be advantageous, but also very scary. You’re placing your financial future on the line so you can avoid losing everything you own.

Just what form of personal bankruptcy should you file? What forms are you eligible for? How much will it cost? And what should you look for in a Georgia lawyer?

This post helps.

Forms of Personal Bankruptcy
Since foreclosure is less common in Georgia than some other states, but since unemployment is still relatively high, there are many choices to make in filing bankruptcy. An experienced Georgia bankruptcy attorney can help you, but first you need a quick education on the subject.

Chapter 7 bankruptcy is the most common, but in Georgia eligibility can be a problem. Chapter 13 bankruptcy is very good for home owners, but if you’re unemployed, you may have trouble filing.

Chapter 7 bankruptcy can in fact eliminate all your credit card debt, and many lose practically nothing in assets sold. Chapter 13 can in fact save your home from foreclosure, and you can get more time to pay other bills as well.

Eligibility for Bankruptcy
If you make too much you may not be eligible for Chapter 7. The general rate is the median income for Georgia residents. Here is a breakdown.

1 Georgia Resident: Yearly Income $40,691
2 Georgia Residents: Yearly Income $55,258
3 Georgia Residents: Annual Income $61, 104
4 Georgia Residents: Annual income $68,502

If you make more than these numbers, you have to file Chapter 13. Most people are eligible for this.

If you have more than $360,475 in unsecured debts and over $1,081,400 in secured debts you cannot file Chapter 13.

Lawyer Fees for Bankruptcy
Since filing personal bankruptcy itself is very cheap–$299 for Chapter 7 and $274 for Chapter 13–it’s also good to get a barometer on lawyer fees. These do vary depending on experience. You should, as a rule of thumb, contact several and ask for general rates and if they charge for initial consultations. The general rates for most personal bankruptcy is higher than filing fees, usually between $1,000 and $2,000.

You Can’t Afford a Lawyer?
Filing bankruptcy is a tough task to do alone. You should really consider how you can put the money together. Factor in how much money you’d lose if this bankruptcy failed. For instance, what if you have $20,000 in credit card debt? What if you were about to lose a $100,000 home?

In some cases, you can’t afford a bankruptcy attorney. But in most instances, they’ll be able to work with you, especially if you are working or have an income.

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

jmalewitz — Tue, 06 Apr 2010 03:08:21 +0000

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.

Changes to US Bankruptcy Law for Georgia Residents

jmalewitz — Sat, 27 Mar 2010 19:00:12 +0000

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.

Economists Declare “Recession Is Over!” Where is the recovery?

Rob — Mon, 17 Aug 2009 13:16:50 +0000

I keep reading news reports like one in the Journal Constitution today that says even two Georgia economists say the recession is over. They claim though that the recovery will be slow and painful.

Not much good news in that for Atlanta residents facing foreclosure and layoffs. If you are facing financial difficulty, you should talk to an experienced bankruptcy attorney about your options to eliminate your debts.

An Atlanta bankruptcy lawyer can help you determine if you are a candidate for Chapter 7 bankrutpcy, or if you will have to file a Chapter 13 case to stop foreclosure on your home.

A bankruptcy attorney can also explain how debt elimination programs work, and help you if you choose to take that course of action.

Job Losses Continue To Rise, Expect More Bankruptcies

Rob — Fri, 13 Feb 2009 19:15:56 +0000

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.

Qualifying For Chapter 7 Bankruptcy

Rob — Wed, 04 Feb 2009 21:08:08 +0000

If you are considering filing bankruptcy in Atlanta, you need to know that you have to qualify in order to file a Chapter 7 case under the rules set by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 .

Understanding the rules of the bankruptcy process can be complicated and confusing. It is best to speak to an Atlanta bankruptcy attorney if you are considering bankruptcy.

Your household income is used to determine if you qualify for Chapter 7 bankrupcty or if you would have more disposable income available to payoff a portion of your debt.

First compare your income to the median income for your area. Below is the median income for Georgia as determined by the U.S. Census Bureau as of October 2008.

One person – $39,253
Two persons – $52,055
Three persons – $59,668
Four Persons - $68,908

If your household income is less than the median income, you will automatically qualify for Chapter 7 bankruptcy in Atlanta. If it is higher, there are quantifiers that could still qualify you for Chapter 7 protections. Speak to an Atlanta bankrutpcy lawyer to find out if you qualify for Chapter 7 bankruptcy.