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.

Stop Creditors
Creditor harassment is another big benefit. You can technically stop it without filing bankruptcy, but if you want to be free of both the debt and the phone ringing all the time, filing bankruptcy can help. They have no reason to contact you after you file. If they continue, refer them to your lawyer. This may seem minor until you start getting many, many calls on a daily basis.

It Gives You a Second Chance
Financially, a Chapter 7 bankruptcy can definitely give you a second chance. You were hurt, and received a $50,000 hospital bill because you have no insurance. Or you lost your job and had $20,000 in credit debt which keeps on getting bigger. The reasons for why are many, but you can get a second chance by filing. It’s about improving your financial future. Consider that, if you just pay the interest on a $25,000 debt for a few months, for that price you can file with the courts and hire a bankruptcy lawyer – and be free of the debt. This is how bankruptcy helps.

Not Easy, But Timely
In Chapter 13 bankruptcy, you can also get a needed second chance, and a timely one at that. Georgia itself has some scary numbers when it comes to foreclosures, especially in the Atlanta area. The good news is the economy is rebuilding, but if you want to keep your car, home, as well as other properties and assets, Chapter 13 bankruptcy can literally buy you the time needed to pay off debts. Also, other debts you have are not always paid in full, so you save time and money.

An Atlanta Bankruptcy Lawyer Can Help
How do you get the ball rolling if you want to file Atlanta bankruptcy? You need a lawyer. Contact 5-10 and ask for a free consultation. The prices will vary, but focus on availability and experience more than price. You want one capable of helping, but of course not out of your price range.

Bankruptcy is worth it. It may not be in the cards for you, but you won’t know until you start crunching the numbers with an experienced lawyer. Bankruptcy may be the best possible decision you can make.

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.

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.

We hear many questions on Georgia Chapter 13 bankruptcy, especially what happens if you miss a payment. Here are some answers.

If You Miss a Payment
If you miss a Chapter 13 payment, you still have options. If you take no action, the court will dismiss your case. But, you can modify the payment plan so you can better afford it, or apply to have payments suspended for several months. A Georgia bankruptcy lawyer can be invaluable in this part of the process. If you don’t have an experienced lawyer, hire one immediately. This can save your repayment plan from being dismissed.

Can you cancel a Chapter 13 plan?
Chapter 13 is voluntary – you can quit any time you want. You just won’t have all your unpaid debts discharged. If you feel it’s not working for you, it’s relatively simple to cancel the case.

You Lose Nothing
In most cases where you miss a payment, you are not in definite danger of your plan being dismissed and losing all assets. As long as you modify the payment plan or suspend it, you are safe. Courts are designed to help you with creditors, not take all your money and offer no real guidance.

Can you file again?
If your plan is dismissed, you can file again (and not wait years). This occurs if your debts have not been legally discharged. The bankruptcy laws won’t stop you from filing again. If you’re discharged, the regular bankruptcy laws are in effect and you have to wait some time to file again.

Advantages of Georgia Chapter 13 Bankruptcy
If you miss one payment, you won’t be alone in this process. Hopefully you’ve hired an experienced Georgia bankruptcy lawyer who can help you in and out of court. This process takes some time: Chapter 7 takes months, Chapter 13 years. That means you definitely need a professional lawyer to guide you through this process. You can reap the rewards of Chapter 13, saving your home, car, and other assets from creditors, while paying in installments you can afford.

One fear car owners have is seeing a tow-truck pull up in their drive way – the feared repo-man. They take your car because you missed payments. What’s next? Before this happens, you can file either Chapter 7 or Chapter 13 bankruptcy. Chapter 13 is much better for keeping your car; you sometimes lose it in a Chapter 7 discharge.

For Georgia home owners, Chapter 7 may also be dangerous. You can lose both your home and car if you can’t make any payments. Though you do get time with the “automatic stay,” you may risk losing them.

With Chapter 13, Georgia home and car owners also get an automatic stay, which halts all collections. You do in fact continue to make payments in some forms, namely for your home and car, but with the debt repayment plan you can make it more manageable.

How can you keep your car?
The automatic stay does give you protection, but for your car you will still be making payments. In some cases, this is not possible, so it might be better to be completely free of the debt with Chapter 7. If you can come up with the money to make payments, you can keep the car. The payments will be much more affordable.

What if you lost it before bankruptcy?
Technically you can get your car back if it was recently repossessed. Say for example 3 weeks before you filed bankruptcy, your car was repossessed. As long as it was recent, and you can come up with enough money to make payments, you can keep the car. This is where an experienced Georgia bankruptcy lawyer can help.

What if you miss a Chapter 13 payment?
You can modify your payment plan or suspend it if you miss some payments or are incapable of continuing. Some believe that once you miss a payment, the deal is over. Not so, because you can work with your lawyer and Georgia bankruptcy court to get back on track.

How much does it cost?
A Chapter 13 bankruptcy will cost $274 to file with the Georgia courts. Hiring a good lawyer will cost you more, usually a flat rate or hourly rate. It’s definitely worth it once you see the advantages – saving your home, car, and other assets.

Who can help?
If you fear losing your car or perhaps more importantly your home because of missing payments, you need to act quickly. This is not to say rush into the process, but the earlier you get the Chapter 13 bankruptcy process started, the better. You need a good lawyer in all bankruptcy cases.

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.

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.

Changes in the Bankruptcy Code several years ago instituted new eligibility requirements, which tend to change based on income and debts. The numbers for Chapter 13 will change again in a few years, as that’s how it works. The changes have made it more difficult to file Chapter 7, making Chapter 13 more common than before.

Why File Chapter 7?
For Georgia residents with little to no income and minor assets, Chapter 7 is much better. It can discharge credit and medical debts of high amounts. If your problem is you don’t have enough money and that may not change – perhaps because of a job loss – you are likely eligible for Chapter 7. The good news here is you often lose nothing, though your credit will be hurt for several years and if you intend to buy a new home or car soon you may have some trouble.

Why Chapter 13?
Georgia residents who have an income, perhaps a home and car, can utilize Chapter 13 bankruptcy in a different way. For one, you pay back some if not all the debts, but you also gain some benefits. It’s been talked about quite often on the Georgia Debt Law blog, and it should be repeated: Chapter 13 is your best option to avoid foreclosure, keep all your assets, and sometimes to avoid wage garnishments. If you file Chapter 7, your assets can technically be liquidated, though that’s not common. But if you have an expensive home you’ve been paying on for 10 years, you may want to avoid losing it. In this and similar cases, Chapter 13 is very smart.

Making the Decision
Bankruptcy isn’t always your best option, but at the least you can sit down and talk with professional counsel about all your options. You may be able to pay these debts yourself. However, if you fear medical or credit card bills will ruin you, hiring a lawyer for Chapter 7 bankruptcy is smart. If you fear home foreclosure, hiring a bankruptcy lawyer to help with Chapter 13 can save it.

Before you file bankruptcy, the best choice you can make is hire a professional Georgia bankruptcy lawyer.