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.

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.

What is individual bankruptcy?
Individual bankruptcy, still important to consider even if you and your spouse want joint bankruptcy, is the most common form. It’s the basic form of bankruptcy you feel as a single person, either with Chapter 7 or Chapter 13 bankruptcy. In most cases, debt and/or foreclosure are the key reasons for filing. For Atlanta residents with higher than average incomes, filing under Chapter 13 is becoming more common as Chapter 7 has new rules for eligibility based on income.

What is joint bankruptcy?
Joint bankruptcy is simply you and your spouse filing together. You can file either Chapter 7 or Chapter 13. In some cases you are not eligible for bankruptcy, or at least joint filing. If you or your spouse filed for individual bankruptcy a few years ago, that person will not be eligible to file again. You need to wait 7 years between bankruptcies, and you or your spouse will have to file individually. Also, the median income for Georgia residents determines Chapter 7 eligibility. If you make too much money for a family your size, even if it’s just the two of you, you won’t be eligible. If on the other hand you have hundreds of thousands in secured and unsecured debt, you may not be eligible for Chapter 13.

What differences are there?
With joint bankruptcy, the process can be much easier than filing separately. You hire one lawyer, pay one fee to him or her, pay one fee to the court instead of two, and you don’t have to worry about you or your spouse being stuck with debts if only one  files. Individual bankruptcy is not necessarily bad; it just saves time and some money if you file together. In some cases, filing together is not an option.

Why file Atlanta joint bankruptcy?
Filing together has some major pluses, as just pointed out. What we didn’t mention was the documentation. Every bankruptcy, no matter if it’s Chapter 7 or Chapter 13, takes time to file for. If you can combine your documents, putting both your bankruptcies together, you can save time. That may seem minor. You can also save $299 for filing Chapter 7 and $274 for filing Chapter 13; small, but it’s money. You will appear in Georgia bankruptcy court together. And you do not have to worry about your spouse who didn’t file being harassed to pay your debts (or the other way around).

If you’re still unsure if filing jointly is smart, contact an Atlanta bankruptcy attorney today.

Who do you call?
You need an experienced bankruptcy attorney. If you’re considering bankruptcy, and you feel you’re ready, it’s wise to get professional counsel from someone. A good attorney saves you time, money, and headaches. He or she can walk you through filing and prepare you for a fresh start. For Chapter 13 personal bankruptcy, you simply have to use the skills of professional counsel.

Discharging Debts with Chapter 7
Chapter 7 bankruptcy will discharge the majority of your debts, technically paying them off by liquidating your assets. However, most lose nothing by filing this, and it’s far more common in Georgia than Chapter 13 bankruptcy. Why? You can’t discharge debt with Chapter 13; you have to pay back the debt.

How Chapter 13 Discharge is Different
You still get a discharge with Chapter 13 bankruptcy, but you will be reorganizing the debts based on a debt repayment plan. You don’t lose any debt — you just make it so you can pay over the usual course of 3-5 years. Usually you’ll be paying your judge appointed trustee. A trustee is the person who will oversee your case and pay your debts .Unlike Chapter 7, the trustee will not liquidate your assets. Once you’ve completed the repayment plan, you are discharged from debts.

Benefits of Chapter 13
So you have to pay all these bills off? What’s the point? Quite true — you do have to pay them off — but there are many key benefits. If you face foreclosure and you really want to keep the home you’ve put time and money into, you can keep it as long as you stay current on the mortgage. Chapter 13 buys you time, and most use it to save homes and other property. If you have an income, it’s wise. If you have little or no income, like most others, you may prefer Chapter 7.

After Bankruptcy
Georgia residents are almost all eligible, most will lose nothing, and get to keep their home. However, this is a much longer process than Chapter 7. For one, a discharge from Chapter 7 can occur in months, while Chapter 13 is years. So it will take some time. But once you’re done, you’ll have saved all your assets, avoided being thrown out of your home, and can get a different kind of fresh start.

There are cases where you might desire filing in Georgia Bankruptcy Court with Chapter 13 bankruptcy. This too can give you a fresh start if you want to rework your debts, buy time to keep your possessions, and save your home from foreclosure.

Which is better, Chapter 7 or Chapter 13? In the past years, both have been used by millions across the country. And in Georgia, unfortunately the rates for both are have been high in recent years. Why are so many filing? Because quite often the advantages outweigh the disadvantages.

Chapter 7 bankruptcy does more than eliminate debt. It can also buy you time to stay in your home with what’s called an “automatic stay,” it can immediately stop creditor harassment, and you can get that fresh start.

Chapter 7 bankruptcy can save both individuals and families.

Families can file joint bankruptcy to consolidate debt. It’s far better than working with a debt consolidation company. If a wife loses her job, and the husband cannot support the family and pay debts on his own, Chapter 7 bankruptcy can discharge thousands if not tens of thousands in debt. Even better news, rarely will Georgia bankruptcy filers lose any assets.

What happens is you hire a bankruptcy attorney, file for Chapter 7 in the Georgia Bankruptcy court in your area, and meet with a trustee. This trustee will hold what’s a called a 341 meeting, where you appear and answer questions regarding your filing. In this short session, with the help of a Georgia attorney you will confirm your right to filing Chapter 7.

Once you get it over with, your debts can be discharged in a matter of months. In Chapter 13, it typically takes 3-5 years for the debt management plan, and you have to pay back debtors.

One negative often addressed is that you may lose valuable assets such as your home and car. True, the trustee can sometimes sell these in order to pay back your debts — that’s his or her job. However, rarely does this occur, and you can often negotiate with the trustee yourself to pay the debt for our car or home and keep it.

As you can see, Chapter 7 bankruptcy should not be  scary. It’s a decision thousands of Georgia residents make every year.  You can get the fresh start and lose practically nothing.

No matter your personal bankruptcy choice — Chapter 7 or Chapter 13 — you might wonder how a lawyer actually helps. With Chapter 7, it’s clear that the 341 meeting, where you’re asked questions and creditors can optionally participate, is about gathering information. If you fear you’ll lose assets, you may consider filing Chapter 13 Atlanta bankruptcy.

Why file Atlanta Chapter 13?
Since Atlanta as a city has very high foreclosure rates in the past years, Chapter 13 is being recommended by expert lawyers to help residents save their homes. Simply put, Chapter 13 bankruptcy  is the best way to save your home. For Atlanta residents, there are details.

You must be eligible. You must create a repayment plan. And you will have to appear in court to explain your situation.

According to the U.S. government, “Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $360,475 and secured debts are less than $1,081,40.” Secured debt  would be debt backed up with collateral,such as your home. Unsecured debt is the opposite: you are backing it up with nothing.

The debt management plan includes details on what creditors you owe money to, how you intend to pay, among other things. This will be how you intend to stay solvent on paper.

What does an Atlanta Chapter 13 lawyer do?
Say you want to know more about the process of Atlanta Chapter 13 bankruptcy. Who do you call? You can find information online, but you really need an experienced attorney to help with your case. For example, you may not be eligible for Chapter 13, but Chapter 7 is wise (or the other way around). Also, in Chapter 13, usually in about 30 days you have a 341 meeting with the U.S. trustee. An experienced attorney can help you in in the meeting and make sure your proposal for debt management is sound.

The attorney can do far more than answer questions. A good one will help you with the proposals, documentation, requirements, and save you time and money doing so.

How will creditors act?
Creditors are technically still going to get their money in most cases. If you have difficult creditors, an experienced Atlanta Chapter 13 attorney can handle them for you. They do have the option to appear with the trustee at the 341 meeting, but most don’t. You will rarely have any more dialogue with creditors you owe money to after any form of personal bankruptcy, usually during it too.

How do you get started?
To get started, you should hire an experienced attorney, prepare all necessary documentation, pay the fee for filing, and create a proposal for your debt management plan.

Is an Atlanta Chapter 13 bankruptcy lawyer really important?
Finally, the question may come up: can you do all this alone? Yes, you can. Even if you have legal experience, the paperwork, 341 meeting, creditors, and dangers of making mistakes, however, are far too great to ignore. Atlanta Chapter 13 bankruptcy will change your  life, and is important for your financial future. Hiring an experienced attorney makes the process much easier.