The article is titled, Can Beazer Homes Avoid Bankruptcy? At first this seems like it has nothing to do with personal bankruptcy and has everything to do with a contributor’s investment opinion. Look deeper though. The ideas that Huneycutt showcases have stark similarities to identifying if you are able to avoid a bankruptcy due to your personal financial situation.

When comparing Beazer to its fellow competition you will notice three core differences that puts them at both a disadvantage and a higher risk for seeking bankruptcy protection:

1. 2-8x Debt to Equity Ratio
2. 50% higher weighted average interest rate
3. 2x higher “Interest Payments as a Percentage of Revenues”

The third is a big risk and the parallel to draw onto personal bankruptcy and evaluating if a Chapter 7 or Chapter 13 bankruptcy is right for you. Consider this, if twice your money is going towards paying interest or monthly minimum payments as a portion of your income, it is both very tough to get out of debt and very tough to maintain a good standard of living. When you acquire a certain level of debt and the interest alone takes up a high percentage of your monthly income, then you know you may be in trouble.

Will Beazer Home files for bankruptcy. Who knows. Huneycutt seems to think there is about a 30% chance that Beazer will file for bankruptcy within the next 3 years. Regardless of the Beazer outcome, consider how the financials of how he is analyzing the company can impact you. For example, if you have too much overall debt, a weighted average interest rate that is too high, or the percentage of income that is going to monthly interest rate and minimum payments, then you may have some of the personal finance signs that bankruptcy is a good option. If you think these describe you, consider contacting Berry & Associates. Our Georgia bankruptcy attorneys have helped over 20,000 consumers through the bankruptcy process.

“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.

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

Do you make more than the median income?
The first tip is one we go over quite often on Georgia Debt Law. If you make less than the median income for our state, which changes every year, then you are eligible for Chapter 7 bankruptcy. If you make more, you cannot file, unless you lack the income to pay on your debts in other ways.

Do you have disposable income?
If you have enough disposable income – income after basic expenses – to pay on some of your debts, you cannot file Chapter 7 if you already make too much money. On the other hand, if you lack the income to pay on debts but still make too much, you may still have a chance to file. Consult with an experienced Georgia bankruptcy lawyer in this situation.

What if you can’t file Chapter 7?
You still have options if you can’t file Georgia Chapter 7 bankruptcy. You can file Chapter 13 bankruptcy, where the only thing stopping you from filing is if you owe too much money (in the hundreds of thousands).

Advantages of Chapter 7
Chapter 7 bankruptcy is a liquidation where assets are sold to pay back your debts. However, few lose much when filing, especially major items like their homes. If you do it right, you can lose very few items as long as you follow the rules and list all your debts. Chapter 7 means you can discharge quite a lot of money. You might have a $100,000 medical bill eliminated by filing. You might save $50,000 on credit card bills. You might discharge enough debt to be able to pay off immediate bills or to simply buy you time to find a new residence. The situation is never good when filing, but you can come out ahead and move on.

Advantages of Chapter 13
Chapter 13 bankruptcy is a debt repayment plan, where you pay on debts over a 3-5 year period. You tend to save less money, but buy yourself some more time. If you make too much to file Chapter 7, you might find some advantages in Chapter 13. With Chapter 13, you can better protect your Georgia home from foreclosure; instead of discharging the debt you can buy time to pay on it.

Get Help with Bankruptcy
If you’re unsure of where to get started with bankruptcy, it’s time to consult with an experienced Georgia bankruptcy lawyer. Eligibility laws can be complex, and do change, so it’s important to get legal help. The first step is to find out if you’re eligible for Georgia Chapter 7 bankruptcy, and a lawyer can help you there.

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.

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.

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.

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.

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.

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.