I have $20,000 in Credit Card Debt, can I File for Chapter 7?

Credit card debt can be tough to rebound from, especially when the debt is a large portion of your annual income.

Question: I owe $20,000 in credit card debt. Can I file for Chapter 7 bankruptcy?

Answer: The ability to repay your credit card debt will involve several factors:

  1. Your income (weekly / monthly take home)
  2. Your total debt
  3. Your credit card minimum payment
  4. Your credit card interest rate
  5. Your other monthly expenses

Variable 1 – Your Income:
Your income is one of the biggest variables. It is alot easier for a person with a $75,000 income to repay $20,000 of credit card debt than a person with a $35,000 income.

Variable 2 – Your total debt:
In this case a $20,000 credit card debt may or may not be the big factor in determining if Chapter 7 is the best option. Other debt, including owning a home, a car and other goods. Under Georgia Chapter 7 bankruptcy you are allowed to keep just over $11,000 worth of goods, such as clothes, furniture, wedding bands and some electronics. In summary, you don’t want to have substantial valuable assets when considering if Chapter 7 is right for you. If you have assets that you are looking to protect, a Chapter 13 bankruptcy might be a better option. An Atlanta Chapter 7 bankruptcy lawyer will be able to tell you if Chapter 7 or Chapter 13 is best for you given your asset level

Variable 3 – Your credit card minimum payment:
Just keeping up with the credit card’s minimum payment can be a challenge. If the minimum payment is too high of a percentage of your monthly income, you may be in too deep. Also, if you can repay the $20,000 credit card debt over the course of 3-5 years, Chapter 7 bankruptcy might not be for you.

Variable 4 – Your credit card interest rate:
Your credit card interest rate can mean thousands of dollars over the course of repayment. You’ll want to both know what the interest rate is and how it is calculated. You might be able to negotiate a lower interest rate, thus avoiding a potential bankruptcy or transfer part or all of the debt to another credit card under more favorable terms. Credit cards are typically the highest interest rate a person has.

Variable 5 – Your other monthly expenses:
If your other monthly expenses are high, paying back the $20,000 credit card debt may not be possible. Your bankruptcy lawyer will discuss these other expenses with you and help frame how you can benefit from seeking bankruptcy protection.

With 20 years of experience and over 25,000 cases assisted, Berry & Associates is one of the most experienced group of Atlanta bankruptcy lawyers. Call us, or search the site to find a bankruptcy lawyer.

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

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

How to File Atlanta Chapter 7 Personal Bankruptcy

Why file Chapter 7 bankruptcy? It’s a question not asked enough, in times where Atlanta residents have some of the highest rates of unemployment and foreclosure in the nation. If you are unsure how to file Atlanta Chapter 7 bankruptcy, this blog how-to can help.

What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a liquidation proceeding where debts are eliminated. You are eliminating debt, not paying on it, and can eliminate most any debt. If you owe medical, credit card, or other unsecured debts, Chapter 7 bankruptcy is a good option. You may owe too much money on your home, a secured debt, and recently lost your job. If you have no means of paying it, you have means beyond bankruptcy, but you can file to eliminate the debt. Chapter 13 bankruptcy, on the other hand, is a debt repayment plan, which, as it sounds, involves you paying on debts over a long period. So you stand to save more money with a Chapter 7 bankruptcy, but you may get more time and save more assets with a  Chapter 13 filing.

What Should You Do Before You File?
Before you file, you should first hire an experienced Atlanta bankruptcy lawyer. You should then make sure you have the most possible debt. That may sound odd, but you want to file at a time where it will have the most affect on your debts, so you may wait a few weeks for that next medical or credit card bill to come in. You should not run up your credit cards knowing they will be discharged, as this is illegal. Also before you file you might consider Chapter 13 bankruptcy. If you have some income, a Chapter 13 filing can help you protect your home from foreclosure, along with keeping other assets.

How Do You File?
For Atlanta Chapter 7 bankruptcy, you start by filing a petition with the Georgia Bankruptcy Court. You then show proof of eligibility, what debts you owe, what assets you have, what income you have, what expenses you have, your previous tax return, and some other documents.

Who Can Help?
Hire an experienced Atlanta bankruptcy lawyer if you’re going to file for Chapter 7 bankruptcy. It’s a smart choice. There are so many mistakes you can make without the guidance of an experienced lawyer. You may not list all your assets. You may not list all your debts. You may hide things without knowing it. You may delay your filing because of these mistakes. Yes, an Atlanta lawyer will cost some money, but it’s money well spent. To find a good lawyer, you can look online, such as at the Georgia State Bar, found at Gabar.org.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , , — jmalewitz @ 9:13 pm

4 Rights You Have In Georgia Bankruptcy

Thousands in Georgia file bankruptcy every year. Why? Because it has many advantages. You might be able to save your home. You may be able to save tens of thousands of dollars. You may be able to avoid a wage garnishment. In other words, you stand to save a lot of time, money, and assets. You may not know all your rights when it comes to Chapter 7 and Chapter 13 bankruptcies. This blog guide will go over them.

Your Right to Chapter 7
If you make less than the median income of Georgia residents, you have the right to file Chapter 7 bankruptcy. If you make more, you cannot file. The median income for Georgia residents is as follows:
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 7 bankruptcy essentially liquidates your assets with the intent of discharging debts. You may owe $50,000 in medical debt and have no options to pay it, or owe $30,000 on a credit card and fear your wages will be garnished. While the term “liquidation” is used, most lose nothing when filing Chapter 7 bankruptcy, and can stand to save tens of thousands of dollars. You also have the option of affirming the debt.

Your Right to Chapter 13
According to the U.S. courts, “A chapter 13 bankruptcy is also called a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.” In other words, you are repaying back your debt, not eliminating it as with Chapter 7 bankruptcy. You almost always have the right to this option. If you’re unsecured debts are less than $360,475 and secured debts are less than $1,081,400, you have the right to file Chapter 13 bankruptcy. Often you may not be eligible for Chapter 7, but are eligible for Chapter 13.

Your Right to a Lawyer
If you are going to file bankruptcy, you should definitely consider hiring an experienced lawyer. For Georgia residents, this is a wise move. Yes, you do have to pay a fee, but you stand to save tens of thousands of dollars. If you filed Chapter 7 bankruptcy, you can save a lot of money. Or if you file Chapter 13, you can buy yourself time to pay on debts and perhaps protect your home from foreclosure.

Your Rights in Foreclosure
One of the best options you have to avoid a foreclosure is to file Chapter 13 bankruptcy. It’s likely you are eligible, and if you are, you can use the filing to put an automatic stay on your home. This stops all collections against you, including any pending foreclosure. With a lawyer’s guidance, you have a chance to save your home. You simply have to understand the rules here – such as not filing too late – to do so.

Filed under: Bankruptcy Information — Tags: , , , , , , , , — jmalewitz @ 5:55 pm

Taking Advantage of Georgia Chapter 7 Bankruptcy

If you are going to file Chapter 7 bankruptcy in Georgia, you might as well do it right, and you might as well take advantage of all the benefits. This blog guide shows you how.

First, Chapter 7 bankruptcy is a liquidation, where you discharge debts at some cost – you might lose some assets. Few lose much in the way of assets, and most debts can be discharged, such as medical, credit card, and mortgage debts. You may have some debts you want to continue paying on if you can afford to, such as on your mortgage, or you stand to lose assets. Chapter 7 bankruptcy is an option, but not your only option. You might consider Chapter 13 bankruptcy, where you repay debt over time and buy yourself some leeway with creditors and on your mortgage.

Second, Chapter 7 bankruptcy should only be used in certain situations. You might have a $50,000 medical debt from when you had no insurance and had to go to the hospital. You might owe $75,000 to credit card companies from a time when you had spending problems. You may be out of work and out of money, and the bills keep coming. On the other hand, if you have a smaller debt, understand that Chapter 7 bankruptcy is a big decision. You will hurt your credit, you may lose some possessions.

Chapter 7 bankruptcy is a fast process. You can be discharged of your debt in a matter of months. That huge medical bill can be gone and you can start rebuilding your credit. Chapter 13 bankruptcy takes much longer to put into effect. And you have to pay on the monies owed. If you file Chapter 13, you typically pay on the debts for 3-5 years.

If you are going to file Chapter 7 bankruptcy, file for effect. Take advantage of all that the filing will do. If you have a large medical bill coming in the mail, you should wait until you get it so you can discharge it with your filing. If you have a credit card bill coming in, perhaps a past due one, wait until you get it to file. In other words, wait until you can discharge the most debt. This is not to say you should spend money and then file, which is illegal. But you should take full advantage of the filing to save money.

Once you have completed Chapter 7 bankruptcy, it’s time to rebuild your credit. Yes, a bankruptcy will hurt your credit, and will show up on your credit report for 10 years. Therefore, you should only use it when you have to. However, it does not ruin your credit either; once you set up some accounts and start paying on your credit cards, you can slowly improve your credit score. Once you get  a better credit score, you can get a larger loan. It’s a very simple process, provided you pay your bills on time.

If you truly want to take advantage of Chapter 7 bankruptcy, it’s time to consider hiring an experienced Georgia bankruptcy lawyer. He or she can help you decide if Chapter 7 is right for you, how to file, and how you can take full advantage of it.

Filed under: Bankruptcy News — Tags: , , , , , , , , , — jmalewitz @ 3:19 pm

Common Georgia Post-Bankruptcy Problems

Whether you file Chapter 7 or Chapter 13 bankruptcy in Georgia, you may be worried about what happens after you file. You won’t be able to get a credit card. You will still owe money. You won’t be able to get a loan. You might have trouble making ends meet. Well, some of these problems have a basis in fact, but some are myths. You can always rebuild credit. You should owe little to nothing. You might have to rebuild your credit before getting a loan. And you may have to be thrifty for some time in order to get new credit cards and loans. But you can get a fresh start.

There are many pitfalls you can avoid when you file for bankruptcy help. After you file, some big decisions need to be made. If you make the right choices – and follow the advice of this guide – you can avoid many post-bankruptcy problems.

Bad Financial Planning
Just because you file bankruptcy does not mean all your problems will go away. Nor will you be able to spend money freely or ignore how you created these problems. Poor financial planning is a leading cause of second and third bankruptcies. You discharge a debt, then go and create a new one. If you can change how you spend money – and budget what you have – you stand to save a lot.

Rebuilding Credit
Another problem people have is in rebuilding credit. Some are taken advantage of by credit repair agencies. These agencies are almost always a dead end. They tend to bend the rules or flat out lie to you about how they can help. In other words, they take advantage of you. Your credit needs time to be repaired. There are no secrets. You might get a secured credit card and slowly improve your credit score. You might start spending money on cards and paying them off immediately. If you follow common sense, you can rebuild your credit.

The Wrong Credit Cards
In order to rebuild your credit, you are going to have to get some credit cards. One common problem people have is getting cards with high interest rates and then spending too much on them. Or you sign up for a plan after hearing some pitches, only to find out about monthly fees you simply should not pay or some other way to take your money. Creditors want money too. They can take advantage of you, so be careful in what credit cards you sign up for.

Using Chapter 7 Correctly
If you are going to file Chapter 7 bankruptcy, do so the right way. You stand to save tens of thousands of dollars, but this is not a get out of jail free card. Sometimes the debts are not your fault, but what you do after a bankruptcy filing can change your life. If you can save money, rebuild your credit, and budget what you have, you can get a fresh start.

Filed under: Bankruptcy News — Tags: , , , , , , , , , , , — jmalewitz @ 5:57 pm

Your Georgia Bankruptcy and Foreclosure Options

If you are facing immense debt or a foreclosure of your home, you may wonder what your options are. You have far more than you might think. You should always consult with an experienced Georgia bankruptcy attorney prior to making any big decisions. This blog guide explains some of the options you have and decisions you’ll need to make.

Your Chapter 7 Option
All bankruptcy discharges debt, just in different ways. Chapter 7 sells off some of your assets in order to pay back debts. You typically lose little, but save a lot of money. If you have a $50,000 medical debt, or a $100,000 credit card debt, or a mortgage you cannot afford after being laid off, you do have options. You can file Chapter 7 bankruptcy to discharge these debts. You may be wondering what you’ll lose. Few bankruptcy filers who follow all the rules lose many assets when it comes to Chapter 7 bankruptcy. Technically your home, car, and other valuables can be taken, but this is a rare and there are ways to protect them. You might discharge other debts and continue paying on your mortgage, for example.

Your Chapter 13 Option
Chapter 13 bankruptcy also discharges debt, but it’s debt you are paying back. You are not eliminating this debt like you are in Chapter 7 bankruptcy nor selling off assets; you are paying it off and not selling anything. If you have an income, Chapter 13 bankruptcy can be a smart option. You stand to protect your home from foreclosure, your car from repossession, your wages from garnishment, and having other valuables taken from you. In Georgia, where foreclosures are a major problem, Chapter 13 bankruptcy can buy you time to pay off your debts and keep your home.

Your Foreclosure Options
Where in some states homes are being foreclosed on at 1 in 800 per month, in Georgia the number is closer to 1 in 250. So every month 1 in 250 homes are being foreclosed on. How can you avoid this? We went over one of your options: to file Chapter 13 bankruptcy. If you file before the foreclosure process is started, the judge will put an automatic stay on all your debts – and this stops collections against you and a foreclosure. If you wait too long, you may still lose the home. You have another option involving Chapter 7 bankruptcy. You might discharge certain debts but continue paying – called affirming the debt – on your mortgage. This way you can both save money and keep your home.

Your Lawyer Options
You have far more options than this, but let’s close with your options in hiring an experienced Georgia bankruptcy lawyer. You can look online, such  as at the Georgia State Bar, found at GABar.com, where you can find many experienced bankruptcy lawyers. You want someone local. You want someone you can afford. And you want someone you can communicate well with. Bankruptcy can take some time. If you hire a lawyer you do not like working with, you can also fire him or her and hire another.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , , , — jmalewitz @ 3:25 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

Important Georgia Foreclosure and Bankruptcy Laws

If you’re trying to avoid foreclosure or considering bankruptcy, you have many options and some decisions to make. First off, how can you avoid foreclosure? Technically you can use bankruptcy to avoid a foreclosure. You can also sell your home or use a short sale to avoid foreclosure. Foreclosure laws vary from state to state, so if you’re unsure about the process, it’s time to consult with an experienced Georgia bankruptcy attorney or real estate expert. To get you started, let’s go over the basics of Georgia foreclosure and bankruptcy laws.

The Power of Sale
In Georgia foreclosure, you can lose a home by either judicial or non-judicial means. The power of sale is important here too. The “power of sale” is the term used when the owner of the property signs a document explaining that by defaulting on the mortgage the home can be sold to pay off the balance. In a non-judicial foreclosure, there is a power of sale in effect. In a judicial foreclosure, no power of sale has been signed, so the foreclosure will go through different means. If there is no power of sale – with a judicial foreclosure – a lawsuit will be filed to gain the power to foreclose on a property.

Chapter 7 Bankruptcy
Technically you may be able to use a Chapter 7 bankruptcy filing in Georgia to avoid a foreclosure. While Chapter 13 is usually far more effective, Chapter 7 can be used to discharge other debts, while you affirm certain debts such as on your home and car. To be eligible for Chapter 7, you must not make too much money, the average median income for Georgia. If you are unsure about this, contact an experienced Georgia bankruptcy lawyer.

Chapter 13 Bankruptcy
If you own a Georgia home, Chapter 13 bankruptcy is the most useful strategy to save it from foreclosure. You might have fallen behind on payments, but want to keep it. You may owe too much debt and have recently lost some of your income. You may have no other place to live if you lose your home. If you can afford to make some payments, and if you file before the foreclosure is started, you can keep your home.  It’s important to file before the foreclosure process has started. If you wait until weeks before they are to take your home, it’s too late. If you take action early, file some form of bankruptcy and speak to a lawyer, you may save some money.

Your Right to a Georgia Lawyer
Finally, if you want to avoid foreclosure, it’s time to consult with some legal help, and that means working with an experienced bankruptcy lawyer. A lawyer can best explain your options. Bankruptcy may be best. You may save more with a short sale. You may want to simply leave the home. If you want to keep your home, a lawyer can be invaluable.

Filed under: Bankruptcy News — Tags: , , , , , , , , — jmalewitz @ 12:53 pm

How to Make Important Bankruptcy Decisions in Georgia

If you’re considering bankruptcy, you may be scared about some of the decisions to make. How can you save money? How can you save property? How can you save time? This guide can provide legal help.

Get Legal Help
Your first decision is in getting legal help. For Georgia bankruptcy filers, this is a critical decision. If you lack the funds to hire a lawyer, you should still try to get one. While not all lawyers are equal, you need legal guidance from a good lawyer. A lawyer can explain the advantages of both Chapter 7 and Chapter 13 bankruptcy. A lawyer can help you protect property. A lawyer can answer all your questions. And a lawyer can help you make important decisions.

Where will you find an experienced Georgia lawyer? You can find them at the Georgia State Bar. You can find them online. You can ask for referrals from your family lawyer. Don’t discount the importance of hiring legal help; it’s crucial in making these decisions.

Find Resources
You should look anywhere you can for legal resources, especially online. There are many state, federal, and lawyer run legal resources online. You can read articles on how Chapter 7 bankruptcy works. You can find out how to protect property with a Chapter 13 bankruptcy. You can also find help on getting a lawyer. Take advantage of your legal right to file bankruptcy by understanding how it works. A redlined and hyperlinked version of the U.S. Bankruptcy Code and other bankruptcy related statutes and rules can be found at Weberlaw.com. This resource details all changes made to federal bankruptcy law by the 2005 bankruptcy reform legislation.

Ask Questions
There is always good reason to ask questions. Well, it’s not elementary school, but it is important to ask these questions. Ask your lawyer. Ask online. Ask experts. Asking questions is how you learn, especially when it comes to filing Georgia bankruptcy. You likely don’t know much about how bankruptcy works, but you can find out more by getting legal help, going over resources, and using these to find answers.

What kind of questions might you ask? You might ask your lawyer how best to discharge debts with Chapter 7 bankruptcy. You may ask your lawyer about foreclosure laws in Georgia and how bankruptcy can help. You can even ask questions of those who filed bankruptcy before on how the court process works.

Focus On The Long Term
Finally, some decisions you make we can help with right now. Should you avoid bankruptcy by tapping into your savings, retirement fund or 401K? Rarely if ever should you avoid bankruptcy and limit your future options. If it’s only going to buy you a few months or a year, it’s not worth it. If a year down the road you have the same problem, it won’t make much of a difference, and you have less money. Therefore, focus on your long term goals instead of trying to avoid bankruptcy.

Filed under: Bankruptcy News — Tags: , , , , , , , , , , — jmalewitz @ 4:57 pm


Ready to Get Help?

Complete the Contact Us Form below and we will call you right away to answer your questions about Bankruptcy. Don't Wait -- Find out if Filing Bankruptcy is your best option today!

Free Bankruptcy Case Review

Name:
Email:
Phone:
City:
State:
How did you find our site?
How Can We Help?
Older Posts »


Talk with an experienced bankruptcy attorney today to evaluate your financial situation for free.

Call us toll free at 1-800-414-3328 or from Atlanta Metro area at 404-235-3328