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Filing Georgia Bankruptcy – What If You Are Ineligible?

Filing bankruptcy in Georgia can save you a lot of time, grief, and money.

Maybe it’s easy to see how you save grief and time: you spend less time finding ways to pay bills, less time worrying about bills, and less time agonizing about having wages garnished and your home taken. But how can you save money by filing Georgia bankruptcy? It may seem obvious for a Chapter 7 bankruptcy, where you discharge a debt. But you also save money in Chapter 13, mainly in terms of assets and property than actual dollar amounts.

Unfortunately, more and more individuals and families are ineligible for bankruptcy. This problem is addressed in this blog guide. We’ll be going over eligibility laws unique to Georgia, what to do if you are ineligible for one, and how best to use bankruptcy.

Eligibility for Chapter 7 Bankruptcy in Georgia
Chapter 7 bankruptcy eligibility is based on income. The more income you have, the harder it can be to file for help. However, if you are out of work or in a low-paying job, you’re almost always eligible. For individuals in Georgia, you can make up to $40,691. For families of two, $55,258. For families of three, $61,104. For families of four, $68,502. You can only file Chapter 7 every 8 years. Therefore, if you filed 5 years ago and want to file again, you can’t. Also, businesses cannot file Chapter 7, only individuals and families.

Chapter 13 Eligibility
Eligibility for Chapter 13 bankruptcy is pretty much the same nationwide. You can make as much money as you want, but there is a limit on the debts you can have. You cannot have secured debts – debts with collateral such as homes and cars – of $1,010,650 or higher. You cannot have unsecured debts – debts like credit card and medical bills – exceeding $336,900. You must also be an individual or family to file Chapter 13. Also, because in this form of bankruptcy you are paying some if not all of the debts, you must have a reliable source of income such as a job or disability capable of funding the debt repayment plan. Finally, if you filed any sooner than six years ago, you cannot file Chapter 13 anywhere in the country.

Filing a Second Time
The point of bankruptcy is to get a second chance financially. Unfortunately, many make the mistake of overspending and not paying on debts correctly, leading to a second bankruptcy. There may be some problems with how you handle money, and you may want financial help for overspending from financial experts and counselors. We all make mistakes, and though filing a second time can be disheartening, it’s important to move on.

What if you aren’t eligible?
Most commonly what occurs is those interested in Chapter 7 bankruptcy make too much. Because of the means test instituted in the bankruptcy code changes of 2005, if you make too much, as addressed earlier, you may be forced to file Chapter 13. This is not always bad. Chapter 13 has many advantages, including protecting your property and assets from being taken. Georgia has some of the highest foreclosure rates of all states, making stopping foreclosure entirely with a timely Chapter 13 filing a smart decision.

On the other hand, you may not be eligible for a Chapter 13 bankruptcy. If somehow you owe this amount of debt, you need some speak with some financial experts about your situation. This is rare, but there are solutions.

Who can help?
Bankruptcy is about getting help, not being judged. You likely want a person to help you, not a computer. An experienced Georgia bankruptcy lawyer can save you time, money, and assets. They can also guide you through the bankruptcy process.

Filed under: Bankruptcy Information — Tags: Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Georgia bankruptcy, Georgia bankruptcy attorney, georgia bankruptcy eligibility chapter 13, georgia bankruptcy eligibility chapter 7, Georgia bankruptcy law, Georgia bankruptcy lawyer, Georgia bankruptcy trustee — jmalewitz @ 1:20 pm

Preparing for Your Chapter 7 Meeting of Creditors

A meeting of creditors may be the wrong term to use when it comes to Chapter 7 bankruptcy, because creditors rarely show up. The 341 meeting, as it’s also called, is one more step up to successfully filing bankruptcy. There are some tips to know before your 341 meeting.

The Notice
You need to remember several key points after getting your notice for a 341 meeting. When is the meeting, at what time, where will it be held, how do you get there, where do you park, and what should you bring? These are some good questions to have, and the answers can be found on your notice or with a map. You also want to confirm with your lawyer that he or she received the notice. If you have further questions and worries, a good lawyer can help.

Study the Notice
You also will be given further information on your notice, namely the trustee assigned to your case. Your trustee is a key component of filing Chapter 7 bankruptcy. You want to ensure this person has no relationship with those you owe money; though rare, it happens and needs to be immediately addressed. If you ever have to change trustees, you will likely get a new notice with a new date for the 341 meeting.

Arrive Early
Just in case you are unfamiliar with where the 341 meeting will be held, be sure to leave early. Yes, the meeting is a formality, but one which deserves your full attention.

The Paperwork
In the notice you’ll also see if all required documents have been given to the court. In cases where you are unsure of what documentation needs to be filed, this should be addressed by your lawyer. Sometimes the wrong documentation can be filed or not filed at all. Problems like these are to be solved by your lawyer; that’s why you pay him or her.

What to bring?
Bring your ID or some other valid form of identification. You should also have proof of your Social Security number, if not then your W-2 tax form or other proof. You also may want to bring a notebook to the meeting in order to take important notes, especially helpful if you have some problems.

Review More
For what may be the final time, you should review all your bankruptcy information. It may be smart to do this with your lawyer. You can go over your current proof of income, debts you have, what debts will not be discharged, and more. If you see some problems, it’s okay: you’re lawyer can help, and the trustee can help you with any changes.

Be Confident
Once you’re ready for the 341 meeting, go in confidently. This is quite often a formality if all your documentation is in order. So take a deep breath and look at this as one of the final steps to financial freedom.

Filed under: Bankruptcy Information — Tags: 341 meeting, bankruptcy form help, Chapter 7 Title 11 United States Code, Chapter 7 Bankruptcy in Atlanta, Georgia bankruptcy law, Georgia bankruptcy lawyer, Georgia bankruptcy trustee, meeting of creditors — jmalewitz @ 12:43 pm

The Changes from the New Bankruptcy Law for Georgia Chapter 7 Filers

In 2005, a new bankruptcy law came into effect with some key changes you need to be aware of in order to successfully file. This blog guide focuses on the changes for Georgia Chapter 7 filers. If you have questions about filing Georgia bankruptcy you need to speak with an experienced lawyer.

Main Points
In short, the new bankruptcy law has made it more difficult to file Chapter 7 bankruptcy, with the option of filing with a Chapter 13 plan instead. This is based on how much you make. Prior to the new law, you had the option between Chapter 7 and Chapter 13. The most common form to use was Chapter 7, because you could literally discharge thousands of debt and lose nothing. Chapter 7 is still very common, but less so. There were also some changes made to how Chapter 13 filers, mainly based on giving you less disposable income to live on.

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.

Filed under: Bankruptcy Information — Tags: Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Creditor, Georgia bankruptcy attorney, Georgia bankruptcy law, Georgia bankruptcy lawyer, Georgia bankruptcy trustee — jmalewitz @ 9:29 pm

Downfalls of Bankruptcy Alternatives

Bankruptcy is clearly not for everyone, but sometimes the alternatives to filing have too many downsides. Instead of dong nothing, working with debt counseling agencies, or stopping creditor harassment yourself, you should be aware of the benefits of filing Chapter 7 or Chapter 13 bankruptcy.

Advantages of Chapter 7
Chapter 7 bankruptcy is also not for everyone, but it’s your best option in certain cases. If your problem is high debts you simply cannot pay back, you can discharge most common debts. This includes the big 3: medical debt, credit card debt, and mortgage debt. Also, you can stop creditor harassment, negotiate with your trustee to keep certain assets, and get a fresh start.

Advantages of Chapter 13
Chapter 13 bankruptcy is used about 25% of the time, while Chapter 7 gets the majority at 75%. Why? This is because you don’t discharge debts with Chapter 13; you pay back all debts. However, you also get to keep all your possessions. Technically, you may lose your home via Chapter 7, while Chapter 13 can effectively stop a foreclosure. If you discharge mortgage debt with Chapter 7, you can lose the home, but with Chapter 13 you are allowed to make payments you can afford.

Now let’s go over the downfalls of the alternatives to filing bankruptcy.

Stop Creditor Harassment
There are laws in place where you can stop creditor harassment without filing bankruptcy. If you only want to stop the harassment, writing a letter to your creditors asking them to stop contacting you can stop the harassment. However, you are still liable for all these debts. The point is you stop the harassment, but you still have all these debts and may run into foreclosure, repossession, and credit problems.

Negotiate With Creditors
You can also work with creditors yourself. Some may be willing to renegotiate your payments. You may be able to sell some assets to pay them. If you have no income coming in, however, this just won’t work. If you cannot afford these debts, negotiating with creditors may be next to impossible. Chapter 7 is a better alternative.

Debt Repayment Plan
There are many agencies out there who can help you negotiate with creditors if you’re uncomfortable with negotiating. The problem again is you may not be able to negotiate at all; some creditors simply won’t respond. Other times, you won’t be able to afford the payments, even lowered.

Debt Counseling
This alternative to bankruptcy, specifically Chapter 13, has the most downfalls. Many go into debt counseling thinking it will solve their problems. It works much like Chapter 13 bankruptcy, in that you create a plan where you can pay off debts. The difference is, if you fail to make just one payment, your creditor can stop the plan. With Chapter 13, you are protected by law from such an event.

Bankruptcy sometimes sounds like a total life change. Yet in most cases you lose nothing. Yes, it stays on your credit report, sometimes you can handle creditors without it, but by law Chapter 7 and Chapter 13 bankruptcy protect you far more.

Filed under: Bankruptcy Information — Tags: Atlanta Bankruptcy Attorney, Atlanta Bankruptcy Lawyer, Bankruptcy, Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Foreclosure, Georgia bankruptcy, Georgia bankruptcy law, Georgia bankruptcy trustee, improving credit score, Liquidation — jmalewitz @ 12:34 pm

Process for Chapter 7 Bankruptcy – What Does the Trustee Do?

What bankruptcy trustees do, how they effect your bankruptcy, and how you can handle one can be complex. That makes it important to get the right attorney to help you through this process. You can hire an attorney: online, in the phone book, and through referrals. For Georgia residents, you can go to the State Bar of Georgia, or search “Georgia bankruptcy lawyers” online.

Now, let’s answer some key questions.

What is a trustee?
The trustee is a court-appointed individual who will pay your creditors on what you owe them. The trustee, and potentially the staff, will be charged with the Georgia court to examine your papers, and liquidate nonexempt property.

What is nonexempt property?
Exempt property you get to keep. Nonexempt property can be sold by the trustee. In some cases, your home may be exempt, depending on its value. Other times, valuable assets like your home and car can be considered nonexempt and sold to pay off creditors.

What will you lose?
Studies on bankruptcy clearly point out how trustees often sell nothing you own. Most or all the property is very often considered exempt and will not be sold. If you own a lot of assets, especially expensive ones, you may consider filing under Chapter 13 bankruptcy to keep your property.

What do creditors do?
The creditors will stop calling you after you file bankruptcy. There is no point. In some cases, they can appeal the case, especially if an automatic stay is issued. What is an automatic stay? That’s where the seizing of assets such as homes can be delayed by law.

Typically, creditors have few powers once you file Chapter 7 bankruptcy. On the other hand, in Chapter 13 bankruptcy,they stand to be paid back for your debts.

What’s Chapter 13 bankruptcy?
Since we’ve mentioned Chapter 13 several times, let’s highlight it. Chapter 13 bankruptcy is different than Chapter 7 in that you pay back debts. Also, a Chapter 7 bankruptcy takes months, while Chapter 13 takes 3-5 years. The advantage with Chapter 13 is if you fear losing expensive assets or your home going into foreclosure, it can effectively save stop it.

What’s better?
Chapter 7 and Chapter 13 each have their own advantages, and more often than not the choice is based on need. If you file Chapter 7, you can eliminate large amounts of debts. If you file Chapter 13, you can save all your assets.

The Final Step
Handling a trustee and choosing between Chapter 7 and Chapter 13 bankruptcy is cause to hire a professional. This means a Georgia personal bankruptcy attorney — who is the most valuable asset you have in bankruptcy.

Filed under: Bankruptcy Information — Tags: Atlanta Bankruptcy Attorney, Atlanta Bankruptcy Lawyer, Atlanta Chapter 13 bankruptcy attorney, chapter 7 liquidation, Georgia bankruptcy trustee — jmalewitz @ 12:58 pm

You Can Keep Your Stuff In Chapter 7 Bankruptcy

Often you can file a Chapter 7 bankruptcy in Atlanta, Georgia and still retain your home, car and other significant assets. This will be accomplished by utilizing the rules regarding exempt assets vs. non-exempt assets.

All non-exempt assets must be turned over to the bankruptcy trustee managing your bankruptcy case, while exempt assets are excluded from the bankruptcy filing and are therefore retained by the debtor.

Exempt assets may include furniture, appliances, clothing, and any tools that are used in the debtor’s employment.

The assets that can be considered exempt vary significantly from state to state. In order to ensure that you fully exercise these property exemptions, it is recommended that you consult a Georgia chapter 7 bankruptcy lawyer.

Other secured assets may be excluded from the bankruptcy if the debtor pays the creditor an amount equal to the value of the property, even if the amount of the debt is more than the value of the item.

Your creditors may object to your Chapter 7 filing. When this happens, you will often need to negotiate a payment plan with that particular creditor or convert your filing to a Chapter 13 bankruptcy. For this reason, it is highly recommended that you consult a qualified Georgia Chapter 7 bankruptcy attorney.

In a Chapter 7 case, you will be required to attend one brief court hearing. This is an opportunity for your creditors to file any objections or additional claims related to your case. If there are no objections, a discharge order will be issued for your debts.

Filed under: Bankruptcy Information — Tags: bankruptcy case, bankruptcy trustee, Chapter 7 Bankruptcy in Atlanta, Chapter 7 bankruptcy in Georgia, Georgia bankruptcy lawyer, Georgia bankruptcy trustee — admin @ 8:26 am

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