The Many Reasons to File Chapter 7 Bankruptcy in Georgia

There many reasons not to file bankruptcy, if you listen to some credit counseling and debt management agencies. There are in fact many more reasons to file. In the first place, credit counseling agencies do nothing you really cannot do yourself, and some charge excessive fees. Few people who consult with credit counseling continue with it. Why? One session can either teach you all you need to know, or lead you away from more useful debt solutions.

The problem with credit counseling agencies is simple: they often warn you of bankruptcy. Well, there are many, many reasons to file bankruptcy in Georgia, a state with unemployment rates higher than the national average as well as 1 in 250 homes going into foreclosure every month. Chapter 7 bankruptcy, specifically, can literally change your life. How so?

Bankruptcy Saves You Money
This may seem quite obvious – of course bankruptcy saves you money! – but many overlook bankruptcy, thinking it’s not an option. You pay $299 to file Chapter 7 bankruptcy. You should hire a lawyer, but even then you are paying a low fee for help which can save you tens of thousands of dollars.

Bankruptcy Gives You New Chances with Money
If you in over your head with debts, you may wonder what to do. Even if you have a good job, if your debts are such that you cannot pay them off in 3 years, consider Chapter 7 bankruptcy. The point here is, it may be easier on your credit to discharge the debt and start fresh. While it may sound odd, if you owe a $20,000 medical bill, a bank lender may have more concerns about loaning you money; if you owe little to nothing, you may have a better chance of getting a loan. Bankruptcy does not help your credit, but neither does it ruin it.

Bankruptcy Allows You to Discharge Impossible Debts
If you owe a $100,000 medical bill, for example, and make $40,000 a year, you have an impossible debt. It’s more than you might make in two years. As noted, if you cannot pay something off in a reasonable amount of time on your own, if it will hamper your life greatly, you may consider Chapter 7 bankruptcy. You can only file every six years, but if you do it right you won’t have to file again.

Chapter 7 Bankruptcy is Cheap
And if you pay a lawyer $1,000 and pay the $299 filing fee $1,299 to discharge that $100,000 medical bill, or whatever it is, it’s more than worth it.

Chapter 7 Bankruptcy Gives You a Fresh Start
Finally, bankruptcy is a second chance at a new life. It will not solve all your problems, you will have to change some things, and you won’t end up rich, but you can get a fresh start with money. Maybe that’s enough.

Filed under: Bankruptcy News — Tags: Atlanta Bankruptcy Lawyer, Chapter 7 Title 11 United States Code, Chapter 7 bankruptcy Atlanta, Georgia bankruptcy, Georgia bankruptcy attorney, georgia bankruptcy court, reasons to file georgia bankruptcy, why file chapter 7 bankruptcy — jmalewitz @ 1:43 pm

Georgia Chapter 7 Bankruptcy or Debt Consolidation?

According to Wikipedia, a useful resource for some terms, “Debt consolidation entails taking out one loan to pay off many others.” The company gives you a large loan and you start paying them instead of creditors. If it sounds flawed already, you’re doing well. While filing Chapter 7 bankruptcy in Georgia is not always your best option – Chapter 13 or negotiating yourself being others – it has some major advantages in comparison to debt consolidation.

Why use debt consolidation?
There are few circumstances where you should consider consolidation. These companies do little you cannot do yourself. If you filed bankruptcy, you would either be completely free of the debt or be able to pay on a fair time table.

Is bankruptcy always the best option?
Sometimes you can negotiate with creditors yourself rather than filing bankruptcy or using debt consolidation. Say you have a $4,000 credit card debt over year head with interest rates climbing and creditors calling. You do not have enough money to pay off this debt, but you do have a job. Instead of using debt consolidation to combine all your monies owed, you might contact the creditor and explain to them how you won’t be able to pay. Creditors want their money, even if it’s over a long period or for less. If you file Chapter 7 bankruptcy, they may get nothing. You can use that. If you have a minor debt, a Chapter 7 bankruptcy may be unnecessary.

When is Chapter 7 bankruptcy best?
For Georgia residents, where unemployment and foreclosure rates are climbing, Chapter 7 bankruptcy has numerous advantages. If you owe a lot of unsecured debts – monies owed on credit cards and to hospitals, most commonly – Chapter 7 is almost always your solution. As long as you don’t make too much money, you can discharge any amount of debt. You owe $50,000 in credit, $40,00 in medical, and cannot keep your $150,000 mortgage going; Chapter 7 bankruptcy is a good option here. It’s not easy, which makes hiring an experienced lawyer a crucial part of the process.

Why not debt consolidation?
You get one bill every month and you lower interest rates; that is how it’s supposed to work. Debt consolidation gives you little legal protection, but bankruptcy does. If you have secured debt – monies on your home and car for example – debt consolidation can do little, as it’s designed for unsecured debts. But you pay less, right? Wrong, you typically pay more on the debts over time because of interest.

Who can help?
Debt consolidation is an option, but for Georgia home owners, it does nothing. If you’re unemployed and owe tens of thousands, you may have no way of paying the monthly fees. If you’re still unsure, contact an experienced Georgia bankruptcy attorney. In most situations, a Chapter 7 or Chapter 13 bankruptcy can save the most money and protect most of your property.

Filed under: Bankruptcy Information — Tags: Atlanta Chapter 13 bankruptcy attorney, Atlanta foreclosure, Chapter 7 Title 11 United States Code, Foreclosure, Georgia bankruptcy, Georgia bankruptcy attorney, georgia bankruptcy court, Georgia bankruptcy law, Georgia bankruptcy lawyer, Georgia bankruptcy trustee, Qualify For Chapter 7 Bankruptcy — jmalewitz @ 1:21 pm

Can You Discharge Your Georgia Mortgage Debt?

If your financial situation is strenuous, and you own a home, it’s understandable to be worried. The title spells it out: can you discharge a mortgage debt on your home with a bankruptcy? That sounds difficult, but as you’ll see it’s very possible and in many ways smart.

When is it bad to discharge a mortgage debt?
If you want to keep your home, to put it simply. You may be able to protect it with a Chapter 13 bankruptcy.

When is it good to discharge a mortgage debt?
If you can’t afford it, and/or if you owe more than it’s worth. Say you and your spouse own a Georgia home worth $200,000, but you’re getting later and later on mortgage payments. Then one of you loses a job. Then a new bill arrives. You know you won’t be able to make the mortgage payment next month nor the months after. In this case, you may file Chapter 7 bankruptcy to just discharge the debt. You can also use what’s called a short sale to pay back what you owe on the home and be free and clear.

Are you eligible to discharge the debt?
On the other hand, if you own a $200,000 home, you may make too much money. If your family income is quite high, but one of you loses a job, you might be eligible for Chapter 7 to discharge the debt. This can get technical, but the more you make the less chance you have of being eligible for Chapter 7. Once your income level lowers, you can file.

Chapter 7 or Chapter 13?
Chapter 13 bankruptcy is best if you want to protect your home from foreclosure. There are rules, such as the fact a bankruptcy cannot stop an ongoing foreclosure, only delay it. But if you know you won’t be able to make full payments on all your debts and mortgage without some help, you can buy time and make manageable payments by filing Chapter 13.

If you are eligible for Chapter 7 bankruptcy, that can completely free you of your mortgage, as well as credit and medical debt. Chapter 7 means you “liquidate” your assets in order to pay back creditors. If you are about to lose the home, you should consider both finding a new residence and also filing for help.

How long will it take?
A Chapter 13 bankruptcy discharge takes much longer than Chapter 7 – Chapter 13 being about 3-5 years and Chapter 7 a few months. If you file Chapter 7, you will have a few months time before being forced to leave the home, even without making payments.

Who should you consult with?
If you’re considering discharging a mortgage debt, it’s time to consult with an experienced Georgia bankruptcy lawyer. He or she will be invaluable in making the decisions between Chapter 7 and Chapter 13, ensuring you follow all laws, that your rights are protected, and that you can discharge the most debt.

Filed under: Bankruptcy Information — Tags: Georgia bankruptcy, Georgia bankruptcy attorney, georgia bankruptcy court, Georgia bankruptcy law, Georgia bankruptcy lawyer, Georgia bankruptcy trustee, georgia chapter 13 bankruptcy, georgia debt discharge, georgia foreclosure options, georgia mortgage debts — jmalewitz @ 2:13 pm

Being Unemployed and Filing Personal Georgia Bankruptcy

If you’re considering filing bankruptcy and are unemployed, what are your options? Because you lack an income, you should rule out Chapter 13 personal bankruptcy, where you pay into a debt repayment plan. You can rarely successfully file Chapter 13 without a job. However, it may be possible if you other income coming in.

The advantage with Chapter 7 bankruptcy is that you can save thousands of dollars, be free of debt, and lose little to no assets. Your home and car can be protected, but the more you own the more need you have for a professional lawyer.

If you have a large amount of property and assets, you stand to lose some of these in bankruptcy. While not common, if your home is going into foreclosure, bankruptcy may not solve your problems. On the other hand, being free of thousands to tens of thousands in debt may allow you to make payments on your home and car with income such as unemployment, disability, and pension.

Some say having no job is almost better with Chapter 7 personal bankruptcy. Why? Changes to Bankruptcy Code in 2005 made it more difficult to make the means test. The means test is the process where your income is calculated. If you are without work, you likely have no income, or perhaps a smaller income. The point here is that your income is based on the previous six months, so if you made a lot of money in the past six months you may have to delay your filing until your average gets below the limit.

For Georgia Chapter 7 personal bankruptcy filers, the median income is what eligibility is based on.

What is the annual median income for Georgia?
1 Individual – 40,546
2 Filers– 55,061
Family of 3 – 60,887
Family of 4 – 68,258
If you have a larger family, add $7,500 for each additional person.

This gives you some breathing room, though many make more than this while employed. But if you’re recently unemployed, you can more than likely file even if on unemployment benefits or disability, as these are very rarely higher than the median incomes stated above.

What if you have no money at all?
If you have no money whatsoever, remember you need to pay a filing fee for bankruptcy, and unless you are experienced in bankruptcy law, you need to hire a lawyer. Few of us are incapable of coming up with these fees given time, and while the court rate is not negotiable, some lawyers are willing to work with you.

Who can help?
What if you’re employed but have too much debt coming in? What if you lost benefits and then had an injury, leading to a huge medical bill? Who can help if you have questions? You need an experienced Georgia bankruptcy lawyer.

First, a lawyer can help you make the decision on whether filing bankruptcy is smart. Second, he or she can advise you on how to best discharge the most debt. Third, if you are making money, a lawyer can explain what Chapter 13 personal bankruptcy can do. Finally, a lawyer is your voice in and out of court: if you run into legal trouble, if creditors are harassing you constantly, and if you fear foreclosure, a lawyer can help.

Filed under: Bankruptcy Information — Tags: advantages of chapter 7 bankruptcy in georgia, Chapter 7 Title 11 United States Code, costs of bankruptcy, Georgia bankruptcy, Georgia bankruptcy attorney, georgia bankruptcy court, Georgia bankruptcy law, Georgia bankruptcy lawyer, georgia chapter 13 bankruptcy, Liquidation, unemployment and bankruptcy — jmalewitz @ 2:15 pm

Common Fears on Chapter 7 Bankruptcy for Georgia Residents

We on Georgia Debt Law hear many stories of Georgia residents and families getting much needed help from filing Chapter 7 bankruptcy. We also listen, and by listening we hear some very common fears related to specifically filing Chapter 7 bankruptcy. You might have heard some too. “The government will take all my stuff … I won’t be able to get a credit card for 10 years … I won’t be able to buy a home ever again …” and so on. This guide is an answer. It goes over some very common fears specifically related to filing Georgia Chapter 7 bankruptcy.

Your Credit Will Be Ruined
Your credit will not be ruined. Bankruptcy is a very common financial action. For Chapter 7 bankruptcy, yes, you are voiding many of your debts. Understandably this will affect your credit. A Chapter 7 filing shows up on your credit for 10 years. However, this does not ruin your credit. Georgia Debt Law goes over many ways you can rebuild your credit by taking some simple steps.

Everyone Will Know
You may be in some ways ashamed at having to file for bankruptcy, maybe even for Chapter 7. And then you may fear that everyone else will know. First, bankruptcy is filed by over 1 million individuals every year. That’s a lot of people. Second, you can only find out about a bankruptcy by going through court records. So yes, some credit companies, if they look, will know you filed bankruptcy. But not everyone will know you filed.

You’ll Lose Your Home
There is some basis for fact in this fear. The general point of filing Chapter 7 bankruptcy is to discharge debt; you have less protection for assets than you might have in a Chapter 13. Still, few lose anything when they file bankruptcy, especially their homes. If you plan it correctly, you can keep your home. If you are in danger of losing it, you have legal rights. You can’t just be thrown out of your home a day after filing bankruptcy. If you cannot pay on it, the automatic stay will protect you for several months from foreclosure and utility shutoff. If you can pay on it in some way, you can keep it.

New Bankruptcy Code Makes it Impossible to File
Yes, the changes to bankruptcy code in 2005 make it harder for some to file, mainly Chapter 7. The new code does not make it impossible for individuals or families to file. If you make more than the Georgia median income, which is 40,456 for one individual and goes up after that for couples and families, you are not eligible. Most are then eligible for Chapter 13.

Lawyers Will Take All Your Money
The idea that lawyers are inherently greedy is a common myth. Of course, not everyone believes it, but it has some reasons. Lawyers are not cheap. In bankruptcy, you are not being defended for a criminal act. You have debt. It’s important, but not a life and death situation. Therefore, lawyers charge some of the lowest legal rates in bankruptcy cases, even some very good ones. You are not filing because you have tens of thousands of dollars. A lawyer can charge you from $1,000 to $2,000 for a successful Chapter 7 bankruptcy discharge.

If you have some questions, contact an experienced Georgia lawyer today. He or she can relieve some of your concerns too.

Filed under: Bankruptcy Information — Tags: bankruptcy fears, bankruptcy myths, foreclosure process, Georgia bankruptcy, Georgia bankruptcy attorney, georgia bankruptcy court, Georgia bankruptcy law, Georgia bankruptcy lawyer, hiring a georgia bankruptcy attorney, improving credit score — jmalewitz @ 1:19 pm

Reasons for Choosing Chapter 7 Bankruptcy in Dalton Georgia

Bankruptcy changes lives. It’s easy to say that, but it’s true because there are many benefits of filing bankruptcy. In Georgia, bankruptcy is often not considered at all financially. In the city of Dalton, many residents facing foreclosure, unemployment, rising credit card debt, and bills they simply cannot pay do not consider filing for bankruptcy. Some are taking full advantage of it, and you should too.

Why not file Chapter 7 bankruptcy?
In personal bankruptcy, Dalton residents have two options: Chapter 7 or Chapter 13. Chapter 7 is the most common because it can be very effective in discharging debts. In Chapter 13, you are paying some if not all the debts you owe, so that $20,000 credit card debt may have to be paid in full. However, your Dalton home may be on the verge of foreclosure; in this instance, Chapter 13 may be better. It can protect your home and other assets from being taken.

You Can’t Repay Major Debts
There are some other reasons for choosing Dalton Georgia Chapter 7 bankruptcy. First, the biggest cause of bankruptcy is medical debt, not credit card debt. It’s a nightmare scenario: a loved one has to go to the hospital, stays for weeks, and you have no medical coverage. Faced with a huge bill, you fear losing everything. The answer is Chapter 7 bankruptcy, not credit counseling and certainly not debt management help. You can discharge tens of thousands of dollars. Along with medical debt, many use it to get out of high interest payments on credit cards; you may only be able to afford minimum payments on a credit card debt, but with bankruptcy you can discharge it completely.

You’re About to be Sued
If creditors are taking legal action against you, Chapter 7 bankruptcy can be a life saver. You may have a variety of bills, from credit to medical to car to even household furniture. These debts can almost always be discharged by a Dalton Chapter 7 bankruptcy.

Protect Your Property and Income
While saving your property is a good goal to have, in some cases it’s not worth keeping it. In others, you have invested far too much money into your assets just to give them up. Georgia bankruptcy exemptions can protect your home, car, and other assets up to a certain level. It’s a mistake to think because Chapter 7 is called a liquidation you lose everything; most in fact lose nothing. If you hire an experienced Dalton bankruptcy lawyer, he or she can explain what property can be protected and is exempt.

Who can help?
There are many bankruptcy lawyers, but when you narrow it down to city and state, the options do shrink. You should hire a local lawyer who you can actually meet face to face. You should ask if they have experience in Chapter 7 and Chapter 13 bankruptcy. You should make sure you can afford their rate. And finally, you want them to be able to help you personally, answering questions and relieving concerns.

Filed under: Bankruptcy Information — Tags: Chapter 7 Title 11 United States Code, dalton bankruptcy help, dalton bankruptcy lawyer, dalton chapter 7 bankruptcy, Georgia bankruptcy attorney, georgia bankruptcy court — jmalewitz @ 1:21 pm

6 Points Beyond Price in Hiring Your Georgia Bankruptcy Lawyer

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

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

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

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

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

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

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

Filed under: Bankruptcy Information — Tags: Chapter 13 bankruptcy in Georgia, Chapter 7 Title 11 United States Code, Chapter 7 bankruptcy, choosing bankruptcy lawyers, costs of georgia bankruptcy, Georgia bankruptcy, Georgia bankruptcy attorney, georgia bankruptcy court, Georgia bankruptcy law, how to hire a georgia bankruptcy lawyer — jmalewitz @ 3:05 pm

What Can You Keep in Georgia Chapter 7 Personal Bankruptcy?

Perhaps the biggest concern for those contemplating bankruptcy is exactly what they can keep. In Georgia, though bankruptcy laws are based on federal laws, certain state codes and laws are different. If you are unsure if you’ll be able to keep your home, car, high value assets, any disability benefits, even personal injury compensation, this blog guide can help.

Georgia Foreclosure and Debt
In Chapter 7 bankruptcy, technically your home can be used to pay off your debts, via a liquidation. However, quite often what happens is there is no equity in the home. Equity is the current value of your home minus the price you paid minus the payoff balances on all liens and mortgages. A bankruptcy will not discharge the lien a lender has on the property. The good news is lenders are not out to take your home; if they foreclose, they lose money. If you can somehow afford to make payments on the mortgage, you can keep the home. If you have less than $5,000 in equity on the home, you qualify for the homestead exemption, allowing you to keep the home and pay on it.

In some cases, Chapter 13 bankruptcy can be better in protecting your home and being able to afford the mortgage. This is a debt repayment plan with a goal for you to lose little if any assets.

Keeping Your Car
If you have no equity in your car, much like your home you can likely keep it. You get the equity for your car by subtracting car loans and the car’s current value. In this example, the trustee will not take your car. Even if you have equity in your car, you can still likely keep it. The number you need to know is $3,500 under current state law; if you have more than $3,500 in equity, you can pay based on how much you owe minus the $3,500 number. So if you had $5,000 in equity, you would pay $1,500 to your trustee to keep the car. You still have more options, so consulting with an experienced Georgia bankruptcy lawyer can help.

Other Assets
You likely have more assets beyond your home and car. This is where the laws become difficult to master, as there is a long list of items you can keep and guidelines for how you keep them. Technically, if you have other properties, these can be taken and sold to pay off your debts (making Chapter 13 a better option). You can keep certain amounts of personal property value, up to $10,000 for you as an individual or $20,000 for you and your spouse if you file jointly. You can also keep most of the assets you have in your home, up to $300 per item for a total value of $5,000 or less.

Benefits
Social security, unemployment compensation, local public assistance, veteran’s benefits, disability, illness, or unemployment benefits are all exempt from being taken. This makes sense, really, because sometimes this is your entire income, whether retired, disabled, or recently unemployed.

Getting Legal Help
If you are unsure of the many complexities above, that’s understandable. These change from year to year, and almost always require a lawyer’s assistance to help you with. For local Georgia bankruptcy help, go with an experienced lawyer you can communicate well with, who has the time to spend helping your case and answering your questions, and who offers his or her expertise for a fair price.

Filed under: Bankruptcy Information — Tags: chapter 7 bankruptcy exemptions, Foreclosure, Georgia bankruptcy, Georgia bankruptcy attorney, georgia bankruptcy court, georgia bankruptcy exemptions, Georgia bankruptcy law, Liquidation — jmalewitz @ 4:09 pm

Georgia Bankruptcy Exemptions

Georgia bankruptcy is quite common, with thousands filing every year. All too often filers go into bankruptcy not knowing all the laws. Will you lose all your assets if you file Georgia bankruptcy? This is not an obvious question. Until the past few years Georgia bankruptcy code was very strict, one of the worst in the country for filers hoping to keep property, cars, and other assets. It has gotten better. This guide will define the exemptions for you, note other rules, and help you search for legal help.

Will you lose everything?
No, rarely will you lose much in a Chapter 7 or Chapter 13 bankruptcy; usually you lose nothing. That does not mean if you have a lot of assets you will avoid losing specific valuable properties and assets. Also, it does not mean you are necessarily eligible for certain forms of bankruptcy. But Georgia bankruptcy law, which is enforced in federal courts but is in fact unique to Georgia, allows for you to keep some if not all of your assets. As no two bankruptcies are alike, you should consult with experienced legal counsel.

Will you lose your home?
This depends on the equity in your home. Equity is the value of the home minus what you’ve paid. The more you owe, the less equity you have. Under Georgia bankruptcy code, $10,000 of your equity is exempt for your home, while if you are married and filing jointly, it can be $20,000 of exempt equity. If you have a lot of equity in the home, filing Chapter 13 bankruptcy may be better, or you can negotiate with your trustee to keep the home.

Will you lose your car?
Georgia bankruptcy code allows for $3,500 in vehicle equity. So, as noted before, you can keep a car you owe a lot of money on. If you’ve paid $5,000 toward the car, and owe $20,000, $3,500 of that $5,000 is exempt and the rest can be negotiated. You can always negotiate with your Chapter 7 trustee to keep assets like homes and cars.

What other assets might you lose?
You have many other assets and money which can be exempt. This depends on the nature of the case. For example, your 401K plan may be exempt, even if the value is over $50,000. You also get $5,000 in exempt home assets, such as your TV or furniture. The law says no single item can be valued over $300, so if you recently bought a $1,200 TV, you may have to negotiate to keep it.

Who can help?
You have a lot of negotiation options in Chapter 7 bankruptcy, and all your assets are protected under a Chapter 13 repayment plan. For example, sometimes you can use extra home equity on other assets. Or, in the case of Chapter 13, you pay on all these debts over a manageable period. These laws change from year to year and can be difficult to understand. If you are unsure of where to start, consulting with a professional Georgia bankruptcy attorney can help you make the decision on filing bankruptcy, help you protect your assets, and also discharge as much debt as possible.

Filed under: Bankruptcy Information — Tags: Bankruptcy Exemptions, Foreclosure, Georgia bankruptcy, Georgia bankruptcy attorney, georgia bankruptcy court, Georgia bankruptcy law, Georgia bankruptcy lawyer, home exemptions — jmalewitz @ 1:28 pm

Obligations for Georgia Chapter 13 Bankruptcy Plan

In Chapter 13 bankruptcy, you are not always paying all the debts you owe. You quite often pay only a fraction of your unsecured debts. There are other debts you can and likely should pay 100% of, and this guide points them out.

This blog guide notes your obligations under the law, gives some essential tips for successfully filing Georgia Chapter 13 bankruptcy, helps save time and assets, and explains how to get help from professionals.

Forms to File
In Chapter 7 bankruptcy, you first prove you are eligible to file, then list your current income, property, expenses, and your debts. It’s very similar in Chapter 13 bankruptcy. You will be proving that you’ve filed taxes, that you have the income necessary for a repayment plan, what expenses you expect, and most importantly what debts you will be paying on. You will also be creating a payment plan which can work for you over the course of 3-5 years; this is how you pay on your debts. If this sounds complex, remember you are not alone in this; a Georgia bankruptcy lawyer can help.

How much do you have to pay?
Some of your debts must be paid in full, along with the filing fees. Chapter 13 costs $274 to file with the courts, the same for all Georgia residents and U.S. citizens. You also must pay your trustee a portion of your monthly payment. Georgia bankruptcy lawyer fees are more than worth it, but you need to hire the right one. These can cost from $1,000 to $2,000.

There are other payments you have to make in full, such as alimony, child support, taxes, and wages if you run a business.

What debts should you pay?
Some debts are optional, but really should be paid in full. If you want to keep your home, pay 100% on the mortgage. You will likely be saving money on some debts, so it may be possible to pay in full. It’s the same with your car and other valuable assets you need.

Unsecured Debts
You can pay anywhere from nothing to 100% of your unsecured debts – debts you owe such on credit cards and medical bills. This will depend on your current income. If you have disposable income, it must go into your repayment plan, as designated at the beginning.

What You Need to Know About Disposable Income
After your main expenses such as home and car payments, money left over is considered disposable income, and must go to paying debts.

Getting Help
Georgia Chapter 13 bankruptcy has the advantage of being able to pay on your most needed assets, while saving money on unsecured debt. In order to reap the rewards of a successful filing, you need an experienced Georgia bankruptcy lawyer.

Filed under: Bankruptcy Information — Tags: Chapter 13 Title 11 United States Code, filing chapter 13 bankruptcy, Georgia bankruptcy, Georgia bankruptcy attorney, georgia bankruptcy court, Georgia bankruptcy law, georgia chapter 13 bankruptcy, georgia foreclosure options — jmalewitz @ 1:51 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

Older Posts »

Ready to Get Help?

Free Bankruptcy Case Review

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