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

Choosing Chapter 13 Bankruptcy Protection

Chapter 13 bankruptcy can not only protect your home but also buy you time on other debts. While the process has some disadvantages in comparison to Chapter 7 bankruptcy, choosing Chapter 13 is a very good move. This guide focuses on the best times to file for help, and how to benefit from your bankruptcy.

Your Right to Chapter 13 Bankruptcy
According to the legal resource NOLO, eligibility for Chapter 13 is based upon how much secured and unsecured debts you have. “Your secured debts cannot exceed $1,010,650, and your unsecured debts cannot be more than $336,90,” the site explains. Secured debts are debts for possessions, such as your home and car, where Chapter 13 bankruptcy is most effective. Unsecured debts are monies owed for items with no collateral, such as a credit card or medical bill. If your major problem is secured debts, and you want to keep your possession, Chapter 13 is best.

Your Chapter 7 Option
If on the other hand your problem is unsecured debts – for example, you owe $25,000 in credit card debt – then Chapter 7 may be your best option. You have a right to file Chapter 7 too, but this is based upon how much you make. It’s very possible to make too much money; if you make more than the Georgia median income as an individual or family, you will not be eligible.

Protecting Your Home
Chapter 13 bankruptcy protects your Georgia home when you are behind on payments and simply cannot keep up. If you have no way of getting current on your payments, Chapter 13 is smart. You can pay the back payments over the course of a debt repayment plan. In other words, if you’re falling behind, fear foreclosure, and want to keep your home, Chapter 13 can help by protecting your home.

Protecting Other Assets
Chapter 13 can also protect other major assets and help you catch up on other debts. Say you are a family of three, you and your spouse make $100,000 a year, but you cannot keep up with mortgage and car payments due to an unexpected medical or credit card bill. You cannot file Chapter 7 because you make too much money. In this case, Chapter 13 can buy your family time to pay on all your bills. Since you do have an income, you likely can reap the rewards of bankruptcy.

Finding Experienced Georgia Chapter 13 Bankruptcy Help
There are many decisions to be made when it comes to Chapter 13 bankruptcy. First and foremost is hiring an experienced Georgia attorney. It’s his or her job to educate you on the laws, to protect your home and other assets, and to ensure you can properly fund the repayment plan. You can find many good bankruptcy attorneys in Georgia by looking online. Or you can get a free consultation from us.

Filed under: Bankruptcy Information — Tags: bankruptcy protection, Chapter 13 Title 11 United States Code, Chapter 13 bankruptcy Atlanta, Georgia bankruptcy, Georgia bankruptcy attorney, Georgia bankruptcy law, Georgia bankruptcy lawyer, georgia chapter 13 bankruptcy, stop foreclosure in Atlanta — jmalewitz @ 1:32 pm

How Bankruptcy Helps Georgia Families

Bankruptcy can help Georgia families in many ways. It’s quite often the smartest financial decision you can make as a family when bills are coming in, interest rates are killing you, and relief is needed. This blog post will highlight your bankruptcy options, find out if you’re eligible, go over the best reasons to file for bankruptcy, and also give tips on finding legal help.

Your Georgia Bankruptcy Options
You can file either Chapter 7 bankruptcy or Chapter 13 bankruptcy. Both have unique advantages, though sometimes you’ll not be able to file one, if not being eligible to file at both (which is rare, but happens). Chapter 7 helps families with immense debts impossible to pay. Typically credit card and medical debt puts families in a bad spot, and bankruptcy can discharge these debts. Chapter 13 is a debt repayment plan buying you and your family time to catch up on bills; it also protects your home from foreclosure.

If you are making a reasonable amount of money, you have a home and car, and your debts are just out of control, Chapter 13 can help you manage these debts while also ensuring you keep your home and car. If paying your debts is impossible, Chapter 7 can discharge these debts. It does depend on eligibility.

Family Eligibility for Bankruptcy
Chapter 7 bankruptcy eligibility in the state of Georgia is, like other states, based upon your income and the median income. For one person, the annual income limit is $40,546; for a family two it’s $55,061; for a family of three its $60,887; for a family of four it’s $68,258; and after that you add another $7,500 per additional family member.

For Chapter 13 bankruptcy, you can make as much money as you want. Your eligibility is based on your secured and unsecured debts. If your unsecured debts exceed $336,900, or if your secured debts exceed $1,010,650, you are not eligible for Chapter 13. Unsecured debts are debts like credit and medical bills, with no asset or property involved. A secured debt is debts like your home and car, which can be taken if you fail to pay. All State laws are the same for Chapter 13 eligibility.

Why File Bankruptcy?
Filing Chapter 7 bankruptcy can literally save you from losing everything. If you have a minimal income, if you or your spouse recently lost a job, if you just got an unexpected huge medical bill, often your best option is to be free of this debt instead of spending years paying on it. Yes, bankruptcy will hurt your credit and ability to get loans, but in reality you can rebuild by following some simple steps.

Chapter 13 bankruptcy on the other hand can protect your home from foreclosure. If you make too much money for Chapter 7, you may think Chapter 13 is less effective. In some ways, this is true, but Chapter 13 can better protect you if you own a lot of properties and assets. If you’ve spent thousands on your home and car, losing them is a scary option.

Who can help?
For Georgia families, bankruptcy is a step in the right direction. If you are unsure if your financial position merits filing for bankruptcy, if you want to know whether you’re eligible, if you want to protect your assets, or if you have an impossible bill, consulting with an experienced Georgia bankruptcy lawyer can help.

Filed under: Bankruptcy Information — Tags: Georgia bankruptcy, Georgia bankruptcy attorney, Georgia bankruptcy law, georgia chapter 13 bankruptcy, georgia chapter 7 bankruptcy, Liquidation, Qualify For Chapter 7 Bankruptcy, stop foreclosure in Atlanta — jmalewitz @ 3:20 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

« Newer Posts