I’m $30,000 in Credit Card Debt, is Chapter 7 Right for Me?

Is there a right time to file for personal bankruptcy? Each person filing for bankruptcy has a unique story, a unique set of circumstances and a unique financial goal. A chapter 7 bankruptcy, also known as a straight bankruptcy, can be a useful tool for a person with high unsecured debt and low assets.

Example: A person owns $30,000 in credit card debt, rents an apartment
In this example the credit card debt is unsecured and since the person rents, instead of owning a home, he may find a Chapter 7 bankruptcy to be an appropriate route. This example also assumes that he does not have substantial valuable assets.

Exception: The person bought a home with 3.5% down in an FHA loan in 2009.
In this example the person has property, which could be at risk to be liquidated. While specific examples can vary, the person in this example likely does have a lot of equity in his property because of 1) he put 3.5% down and 2) the market have been flat, if not decreasing in most of Georgia since 2009. He may be a Chapter 7 candidate. Some areas have gained in value since 2009. Should his property value be higher, not underwater, and he has other valuable protectable assets, he may want to look at other bankruptcy options such as filing for Chapter 13.

What can I keep?
For those that file for a Georgia Chapter 7 there are some items that they can keep. Currently a person can keep just over $11,000 worth of goods, including household goods, clothes, furniture, wedding bands and some consumer electronics such as a personal computer.

Who isn’t a good candidate?
If you own a home with high equity, are a landowner, or have substantial assets and could cover a 3-5 year structured debt repayment plan, Chapter 7 may not be for you. For those in this situation, a Chapter 13 bankruptcy might lead to a better overall financial outcome. Check with you bankruptcy attorney if you have questions.

What’s Next?
Bankruptcy is a tough decision. Fortunately options exist to provide people with a new financial start. Since each situation is different, you may want to contact a bankruptcy lawyer before proceeding with a filing. A law firm such as Berry & Associates has the experience with a personal bankruptcy cases, including Georgia Chapter 7 claims. Contact us online or give us a call to see how we can help.

Filed under: Bankruptcy Information — Tags: , , — admin @ 7:09 am

What to Expect When You File for Chapter 7 Bankruptcy in GA

There are some potential issues and criteria that you should be aware of before you submit your filing for Chapter 7 . First, you must be a resident of the state which you intend to file your bankruptcy for at least 90 days prior to filing. To file Georgia Chapter 7 bankruptcy, you’ll need establish legal residence in the state. In order to be considered a Georgia resident,  you’ll need to have home or apartment in your name, obtain a Georgia’s driver licenses, secure employment, register your car, change bank account addresses to Georgia, or even register to vote.

New Credit & Bankruptcy Filing Concerns: Be careful in what your new credit consist of up to 90 days before you file for bankruptcy. If you incurred new credit of $500 or more for “luxury goods or services” within the 90-day wind before your bankruptcy, or if you obtain a cash advance in the amount of $750 within 70-day period before your bankruptcy, the debt will not be able to be dischargeable.

Once you’re case has been official, in most cases the court will enter an Automatic Stay order which prohibits your creditors from taking or continuing any collection or legal action against you. To our clients, this is what they look forward to the most.

15 Day Mark: About 15 days after we’ve filed your case, the court will mail the Notice of Commencement of Case to you, Berry & Associates, and to all of the creditors listed in your petition. This notice will let us know the the date that the court has set for the meeting of your creditors, and the deadlines for your creditors to object to your case and file their claims against you.

30 Day Mark: Next, the 30 days after we file your case, or before the meeting of your creditors if that occurs first, you are required to file a Statement of Intention. Simply, this document will advise the court if there are items which you still have debt on that you intend to keep. The property which you decide to keep will serve as collateral for your other debts. Most of the clients that we work with at any of our Metro Atlanta Offices, decide to keep a car or even their house if our client is still able to keep up the payments. The court will also hold a Meeting of Your Creditors about six weeks after your bankruptcy case is filed. At least seven days before this meeting, you are required to provide a copy of your most recently filed tax return.

60 Day Mark: Around the 60 day mark after you’ve met with your creditors, you will receive your Chapter 7 discharge. Even if you receive your discharge, the trustee may, however, move to set it aside if you do not turn over nonexempt property or if you commit other bankruptcy violations.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 implements one last item from you before you’re eligible for your discharge, which is the financial education requirement. This requires you to complete an instructional course concerning personal financial management. We work with a number of providers which can refer you to an approved financial management class.

Berry & Associates has over 11 metro locations that can help with a local Atlanta Chapter 7 Bankruptcy case.

Filed under: Bankruptcy Information — Tags: , , — admin @ 7:04 am

Georgia Chapter 7 Bankruptcy vs Chapter 13 Differences?

When starting off looking into a potential personal bankruptcy, people have alot of questions. A common question is around deciding what type of bankruptcy is right for them. A question that people often ask their attorney: 

“What the difference is between a Georgia Chapter 7 and a Chapter 13 bankruptcy?”

Both Chapter 7 and Chapter 13 are types of personal bankruptcies. On the surface it seems like they would be very similiar and they are in some ways. The key difference is that a Georgia Chapter 7 bankrupcty, otherwise known as a “straight bankruptcy,” is more like a “fresh start” where a Chapter 13 agreement is more of a payment plan. A Chapter 7 is also different in that it seeks to immediately discharge you from your debts. Under a Chapter 7 your assets are liquidated and distributed among your creditors. This is an ideal option for those that have few assets and accounts for over half of all personal bankruptcies.

Related: Major Benefits of Atlanta Chapter 7 Bankruptcy

Chapter 13 is different than a Chapter 7. In a Chatper 13 you are not immediately discharged from your debts, but instead are placed on a payment plan that is approved by the courts. In a Chapter 13, you work with your attorney to present a plan in Georgia bankruptcy court that will require you pay as much as you can on your debts. To qualify you will need to have a current income and if approved you have a maximum of 5 years to repay your debt. Upon completing the payments you will receive discharge documentation.

Have a question about your options? Need to assemble a plan? To learn more or to ask a question, contact Berry & Associates, a leader among Atlanta bankruptcy law firms at 404-235-3328.

Filed under: Bankruptcy Information — Tags: , , , — admin @ 8:24 pm

Finding Berry and Associates Bankruptcy Offices

Berry & Associates has over 10 offices available in metro Atlanta that can help you with a potential bankruptcy case. Our attorneys specialize in personal bankruptcy, including chapter 7 and chapter 13 bankruptcy. We have helped over 25,000 thousand Georgians get back on their feet.

To learn more about an office near you, visit the Berry & Associates location page.

Below is a list of our bankruptcy offices.

Berry & Associates Atlanta | Google Places Map
2751 Buford Highway
Suite 400
Atlanta, GA 30324
Tel: (404) 235-3328

Berry & Associates Cartersville | Google Places Map
807 N. Tennessee St.
Suite 103
Cartersville, GA 30120
Tel: (404) 425-5178

Berry & Associates Conyers
2385 Wall St.
Suite 105
Conyers, GA 30013
Tel: (404) 425-5179

Berry & Associates Dalton | Google Places Map
415 E. Walnut St.
Suite 110
Dalton, GA 30721
Tel: (706) 523-3281

Berry & Associates Douglasville
3400 Chapel Hill Rd.
Suite 327
Douglasville, GA 30135
Tel: (404) 425-5180

Berry & Associates Duluth | Google Places Map
3235 Satellite Blvd.
Building 400, Suite 300
Duluth, GA 30096
Tel: (404) 425-5181

Berry & Associates Gainesville | Google Places Map
105 Bradford St.
Suite C
Gainesville, GA 30501
Tel: (404) 425-5182

Berry & Associates Jonesboro (Morrow) | Google Places Map
7183 Jonesboro Rd.
Suite 100
Morrow, GA 30260
Tel: (404) 425-5183

Berry & Associates Kennesaw
125 Townpark Dr.
Suite 500
Kennesaw, GA 30144
Tel: (404) 425-5184

Berry & Associates Newnan | Google Places Map
276 W. Bullsboro Dr.
Newnan, GA 30263
Tel: (404) 425-5185

Berry & Associates Rome | Google Places Map
519 Broad St.
Suite 104
Rome, GA 30161
Tel: (404) 425-5186

Filed under: Bankruptcy Information — Tags: , , , , , — admin @ 8:31 pm

When to File Chapter 7 Bankruptcy in Atlanta

Filing Chapter 7 bankruptcy has both advantages and downsides. The main advantage is in saving money. The main downside is that you may lose some property or assets. Georgia bankruptcy law can be complex, but for Atlanta residents, in a city and state where unemployment is higher than the national average, Chapter 7 is an option on the table. This blog guide will explain when you should start considering filing Atlanta Chapter 7 bankruptcy.

Chapter 7 to Cancel Credit Card Debt
While credit card debt is not the #1 cause of bankruptcy, it is a big one. Some of us are forced to use credit cards after losing our jobs. Others have poor spending habits. Some are trying to avoid losing everything. Credit card debt can be discharged in a matter of months with Chapter 7 bankruptcy. If you owe more than you can pay off in 3-5 years time, you may consider it. If you owe more than you make in an entire year, and you should be able to protect your property, you may should also consider it.

Chapter 7 to Discharge Medical Debt
Medical debt is the leading cause of bankruptcy nationwide. As noted, Georgia has some of the highest unemployment in the country, at over 10% by last count. Atlanta itself, as we all know, has thousands out of work and thousands more without medical coverage. If you have no medical coverage, get hurt, and have to go to the hospital, in a matter of days you can get a bill worth more than you make in a year. You might get a $50,000 bill for a bad infection, or a $100,000 bill for an injury to your child. Whatever the case, this is a time to consider Chapter 7 bankruptcy. It can discharge the debt in a matter of months.

Why not Chapter 13?
Chapter 7 bankruptcy is a liquidation: you discharge debt at some cost, because some of your assets can be taken to pay off the debt. Chapter 13 bankruptcy is debt repayment plan: you are paying off your debts, not eliminating them, and likely protecting your property. The problem here is if you have an impossible debt it’s pointless to file Chapter 13 bankruptcy. If you have no income, there is no point. On the other hand, if you own a home and have a job, but have fallen behind in bills, you may consider it.

When Not to File
If you are facing foreclosure, Chapter 7 bankruptcy may not be your best option. Atlanta foreclosure rates are quite high. In comparison to other states, Georgia has some of the highest foreclosure rates in the country. If you have an income, you may want to protect your home. Or if you owe a small amount, something you can pay off in a year or less, Chapter 7 may not be your best option.

Get Legal Help
No matter what, file Chapter 7 bankruptcy with the help of an Atlanta lawyer. There are thousands of capable Georgia bankruptcy lawyers. You can find them at the GaBar.org, the State Bar of Georgia, and on sites and blogs like this one.

Filed under: Bankruptcy Information — Tags: , , , , , , , — jmalewitz @ 2:56 pm

Georgia Bankruptcy Tips: Save Money and Your Home

Bankruptcy is one of the biggest financial decisions you will make in your life. Therefore, spend time studying it, make sure you follow all laws, and hire an effective bankruptcy lawyer for help. This guide gives some essential tips on saving money throughout the process, while also giving help to home owners facing foreclosure.

How much will it cost?
If you want to save money, filing bankruptcy may seem like a no-brainer. Well, it’s not always your best option. You may be able to pay off debts on your own. You may be able to negotiate with creditors without a bankruptcy. And if you’re not eligible, you may have to find other solutions.

On the other hand, Chapter 7 bankruptcy can discharge tens of thousands in debt. It costs only $299 to file. Chapter 13 bankruptcy can save you the money invested in your home, while also buying you time to pay on other debts. You pay online $274 to file Chapter 13. That is a low price to pay for a second chance financially. You should also consider hiring a lawyer. A good lawyer will cost from $1,000 to $2,000.

Will you lose your home in bankruptcy?
Not necessarily; you can save your home with bankruptcy. Georgia bankruptcy allows for you to protect your home; the key is to have the right strategy. You might file Chapter 13 bankruptcy to stop a foreclosure before it begins. You might file Chapter 7 bankruptcy and pay on your home outside the bankruptcy. If you simply cannot afford your home, you might be able to use a short sale to lose the debt. If you want to discharge the debt instead, you can do so with Chapter 7.

What are your options?
You have Chapter 7 bankruptcy, perhaps the best way to save money, and Chapter 13, likely your best option for avoiding a foreclosure. If you make too much money, you may not be eligible for Chapter 7 (it’s based on the average Georgia income). If you owe too much – though this is rare – you may be ineligible for Chapter 13. You usually have the option of Chapter 7 or Chapter 13.

Why hire a lawyer?
Should you always hire a bankruptcy lawyer in order to file? About 99% of the time you should consider hiring a lawyer. A lawyer saves you money: it’s his or her job to ensure you discharge the most debt, and also avoid wage garnishments. A lawyer protects your possessions: it’s his or her job to help you avoid foreclosure and to keep other assets like your car too. Perhaps the most value a lawyer gives is in giving you a second chance.

Bankruptcy is not always your best option, but it’s often much better than the alternatives. Instead of paying on debts you simply cannot afford, file for help. Instead of using debt consolidation, protect your assets and your income by filing. Instead of selling your home, protect your dream with a Chapter 13 bankruptcy.

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

The First Steps After Georgia Bankruptcy

You successfully filed a Chapter 7 bankruptcy and you’re ready to save, save, save, avoiding the mistakes which led up to the bankruptcy. Some are ready to spend, spend, spend, learning nothing from bankruptcy. It’s better to be the saver, of course, and good to learn from the experience.

We often get asked, “What do I do after a successful bankruptcy?” Thousands in Georgia are discharged of millions in debt every single year. If you’re one of them, it’s time to start taking steps to avoid filing ever again. This blog guide can help.

Pay Bills Early, Always Pay On-Time
Paying bills early may seem obvious. But many go right back into the old mode of paying bills by credit card the day it’s due, if not forgetting about the bills entirely until problems result. This is quite common, nothing to be ashamed of, but certainly something you want to avoid. Bankruptcy experts always say you should pay bills early after filing. Pay them early as much as possible. If you are running behind one month, it’s okay to pay on-time. However, don’t get in the habit of just paying on-time; pay early to save yourself the headache and start rebuilding your credit.

Going to The Wrong Money Lenders
There are some horror stories of people getting into debt after losing a job. They had been getting advances from loan companies just to pay the bills on time. Then they got fired, couldn’t pay the advance financially company, and got stuck in a debt with a horrible interest rate. Avoid money lending companies for check cashing and advances. They are the worst way to get money.

Avoid Co-Signers
You may think you can easily get a loan or new account by having a co-signer. A mother helping her son, a father for his daughter, a sister for her brother. However, it’s best to protect your friends and family. You do not want to have them owing thousands because you can’t make a payment. It may sound odd, but you want to be the only one affected. Therefore, co-signers after a bankruptcy is a bad idea.

Getting Credit and Loans
After filing bankruptcy, it may be difficult to find a good lender. You will be told no on many applications and in meetings. However, these men and women are just doing their jobs. You can always get new credit lines and loans. How? Simple, ask the lender who might take you on. Don’t just take the refusal and go to the next company on the list. One financial expert points out you should ask open ended questions. You ask the lender, “what would you do?” Or, “who might finance me?” They often enough have some ideas. There are always options.

Rebuilding Your Credit
A checking and saving account are the first steps in rebuilding your credit. You should also consider getting a secured credit card. You pay upfront on these, and the more you pay the more your limit is. You might pay $1,000 and get a balance of $1,000, though you pay that balance outside the initial payment. You do not lose this money; you can get it back easily. You should also consider opening up some store credit cards, though remember to only buy needs, not wants.

There are many other ways to rebuild your credit, get loans, and protect your finances after a bankruptcy. Keep reading Georgia Debt Law for tips before, during, and after bankruptcy.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , — jmalewitz @ 2:36 pm

6 Points Beyond Price in Hiring Your Georgia Bankruptcy Lawyer

All too often we look for the rock bottom price when the better value is in fact going with a good product. In terms of bankruptcy law, especially in the state of Georgia, price is relative in terms of what  an experienced lawyer can do for you. Would you want to cut your fee for having an operation in half by choosing the cheaper doctor? It’s not nearly as drastic, but it makes the point that you pay for many things beyond filling out paperwork when it comes to bankruptcy. And what are you really paying for? Let’s find out.

Education
Your lawyer should have the education needed to not only handle your case but to successfully navigate the laws. Just as privates in the army know less than generals, some lawyers know more than others. You cannot always tell this by education; experience is important too. But education is where lawyers prove themselves in the beginning.

Experience
You pay for value when you hire a lawyer, and the best value you can get is with experience. Experience in and out of court saves you a lot of legal hassle, time, and money. If you are choosing between a Georgia bankruptcy lawyer with 1 year court experience and one with 10 years experience, is there really that big of a divide? Yes. Bankruptcy is a very complex process. You never stop learning as a lawyer. The more in court experience your lawyer has, the more cases where debts were successfully discharged and assets protected, the better. Since bankruptcy code changes constantly, especially in terms of eligibility, you need someone who can adapt, not someone learning on the job.

Availability
You can get a lawyer for low fees, then you’ll see why he or she charges so little: they spend a fraction of the time on your actual case, they take on a huge load so they can bring in the same pay. Time is very important. You want a lawyer capable of handling the time involved in filing paperwork, handling creditors, and helping you get a fresh start.

Communication
Good communicators in the legal world are invaluable. They can save you a lot of time and headaches. Let’s face it: some lawyers only care about the paycheck, not helping you. You likely will have many questions when it comes to Georgia bankruptcy. Will you be eligible for Chapter 7 or Chapter 13 bankruptcy? What debts can be discharged? How much will it cost? How long will it take? No two bankruptcies are exactly alike, making communication skills and friendliness important when hiring your lawyer.

Legal Guidance
Few who are not bankruptcy lawyers can file by themselves. You can technically file by yourself, but the legal guidance can be invaluable. You may not know of things like home exemptions or ways to stop wage garnishments. It’s your lawyer’s job to walk you through steps like these.

Saving Money
There are many more points beyond money when hiring a Georgia bankruptcy lawyer, but, oddly enough, how much they save you may be the biggest. You don’t file bankruptcy because you have a lot of money coming in; you file to save money. And if you can discharge $50,000 in a Chapter 7 bankruptcy or buy much needed time with a Chapter 13 bankruptcy, it’s more than worth it. A lawyer saves you money? Yes, the best ones do.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , — jmalewitz @ 3:05 pm

How Much is Your Atlanta Bankruptcy Attorney Worth?

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.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , — jmalewitz @ 1:56 pm

Before You Hire A Georgia Bankruptcy Attorney, Read This

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.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , — jmalewitz @ 11:23 am


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