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 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.

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.

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

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

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

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

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

One of the best ways to eliminate unsecured debt is Chapter 7 bankruptcy. For Atlanta residents, Chapter 7 has many advantages. You can halt all collection efforts. You can eliminate debts you simply cannot afford. If you fear assets may be taken or other legal action will ensue, you can be protected under law. There are some disadvantages too. This will be a mark on your record for 10 years. You won’t be able to file again for 8 years (or 6 years if you filed Chapter 13 first). Some assets by law can be liquidated in order to pay back some of these debts; assets like a home and car are rarely included, but it happens.

Atlanta Chapter 7 bankruptcy isn’t always your best option. Sometimes filing Chapter 13 bankruptcy has more advantages. As long as your unsecured and unsecured debts are not too high, you are eligible to file, where you may not be eligible for Chapter 7 if you make too much money. If you have a lot of assets, if you’re home is in danger of foreclosure, you can keep these assets and pay debts in manageable installments.

How does Chapter 7 liquidate assets?
You will be charged with a Georgia bankruptcy trustee who will oversee your case. This trustee has the power to sell assets. However, few will lose anything: the great majority of Chapter 7 filers lose no assets. So don’t be afraid of losing your home and car. By following the laws and hiring an Atlanta bankruptcy attorney, you can save assets and discharge debt.

Will all unsecured debt be discharged?
No, the big three debts most people have are credit card, medical, and mortgage. These debts can technically be discharged, though you may lose the home if you do not pay on it. Say you have $20,000 in credit card debt; in this case, filing Chapter 7 bankruptcy can discharge these debts in a matter of months. Or say you have $50,000 in  medical bills; once again, filing Chapter 7 can eliminate these debts.

Debts you can’t discharge include alimony, child support, and back taxes. These are unsecured debts, but by law you have to pay them.

How much does it cost?
Chapter 7 bankruptcy is very reasonable for Atlanta residents looking to eliminate debts. You pay only $299 to file with the court. You should also hire a lawyer. A lawyer will cost more, from $1,000 to $2,500 depending on the time involved for your case.

Why a Lawyer?
There are hundreds of Atlanta bankruptcy lawyers who can help you, but not all are equally experienced and have fair prices. You need a professional, experienced lawyer who will walk you through this process. A lawyer actually saves you time and money, allowing you to discharge the most debt in a timely manner.

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

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

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

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

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