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: , , , , , , , — jmalewitz @ 3:20 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: , , , , , , , — jmalewitz @ 4:09 pm

Before Your File Georgia Chapter 7 Bankruptcy, Read These Tips

Tens of thousands filed bankruptcy in Georgia in 2009, and thousands more are getting a second chance financially by filing in 2010. Filing bankruptcy in Georgia has many advantages, especially if you’re in over your head financially. The problem many have is a lack of income and benefits. Some have no jobs, others no insurance, still more are in over their heads with credit debt. These tips may sound familiar. If you’re ready to make a move, contact a lawyer. But you need to hire one who can truly help.

Hire the Right Lawyer
We go over the many reasons you need a lawyer quite often on Georgia Debt Law. Unfortunately, many forgo hiring a lawyer because of a lack of income. It’s understandable: maybe you have no job, maybe you just received a huge credit card or medical bill, and paying money to a lawyer is impossible.

However, we all have ways of getting some money. Legally, you can get loans from friends and family, sell certain exempt assets, sometimes even negotiate with the lawyer on a payment plan. A lawyer is so valuable because he or she can help you fill out all forms correctly, handle any creditor problems you may be having, help you keep your assets, and most importantly discharge the majority of your debt. It’s easy to say, “you have to hire a lawyer,” but in reality, you may not have the means. If this is the case discuss your options with some qualified lawyers. Just making the call is a big first step.

If You Have No Job
If you have no job, filing Chapter 7 bankruptcy is a no-brainer. You have no income to be taken. You can prove you cannot afford a Chapter 13 repayment plan. What happened was the Bankruptcy Code of 2005 made it more difficult to file Chapter 7 bankruptcy nationwide. If you make too much money, you may be forced to file Chapter 13 and fund a repayment plan. However, if you have no job, it’s almost a good thing. You can clearly prove you cannot pay off these debts.

If You Have No Other Income
Also, if you have no other income coming in, say from disability or through a retirement plan, you are likely eligible for Chapter 7. Even if you have some money coming in, you are quite often eligible for Chapter 7. In Georgia, it’s based on the median income. If you are above, you have to file Chapter 13. Most with no jobs and minor income are eligible.

The Best Reasons to File
Filing can stop creditor harassment, give you a financial second chance, save assets from being taken, save you tens of thousands of dollars in credit or medical debt, and all for the cost of a $299 court fee and some lawyer expenses.

Foreclosure and Georgia Chapter 7
Filing Chapter 7 in Georgia is not always your best option. If you do have some money coming in, Chapter 13 may be better. In fact, it can save your home from foreclosure. Why? If you file Chapter 13 before the foreclosure papers are filed, an “automatic stay” is put on all your debts and stops any foreclosure. You can then renegotiate.

Credit Card and Medical Debt
Before you file Georgia Chapter 7 bankruptcy, consider all your options. If you have immense credit and medical debt, you can be free of it. These are the best reasons to file. Chapter 7 bankruptcy is a solution for those struggling financially. If you have no insurance, paying off a $100,000 medical bill may be impossible. If you made some financial mistakes and are in debt for tens of thousands on your credit cards, you may be in a hole impossible to dig out of. In these instances, filing Chapter 7 bankruptcy in Georgia can give you a fresh start.

Filed under: Bankruptcy Information — Tags: , , , , , , , — jmalewitz @ 1:52 pm

If You Have No Job and Want to File Chapter 7 Bankruptcy

If you have no job or any other income coming in, and you’re heavily in debt, you may wonder about your options. The good news is that lacking a job is actually a good thing when it comes to Filing Chapter 7 bankruptcy. Why?

If you have a high paying job, you are often not eligible for Chapter 7 bankruptcy. For example, if you make over $40,456 in Georgia as an individual, you are not eligible for Chapter 7 bankruptcy. This number varies from state to state. Let’s go into more detail on how the means test, your job status,and Chapter 7 bankruptcy work.

No Job is Good
As noted, if you have no job, you are likely eligible for bankruptcy. If you have no other income coming in, the majority of the time you are eligible. Even if you do have a job, the lower paying it is the greater the possibility you will be eligible to file. If you make too much, you have to file Chapter 13 bankruptcy.

The Means Test
The means test is how this eligibility is factored in. It’s important to note that if you have a high paying job but lose it, you may not be eligible for several months. The means tests works like this: your past income for the previous six months is compared to the median income for other Georgians, so if you make $60,000 as an individual, you are over. Now, if you lose your job, it’s wise to wait several months before applying for Chapter 7 relief. This is because your prior income will be factored in, even if the job is gone.

What happens if you’re not eligible for Chapter 7? First off, because of the 2005 changes to Bankruptcy Code, Chapter 13 bankruptcy, which is a debt repayment plan, is now more common for those with higher incomes. If you make too much for Chapter 7, you’re likely eligible for Chapter 13.

Georgia Chapter 7
Filing Chapter 7 bankruptcy has many advantages, namely the fact you can discharge a lot of debt. Even with unemployment benefits, having bills come in for credit cards and medical fees can be daunting. Chapter 7 has the ability to discharge these debts at little cost to you; most who file Chapter 7 in Georgia and elsewhere lose nothing.

If You Need Help
If you have no job, how can you afford to file bankruptcy? Well, Chapter 7 bankruptcy only costs $299 to file, which may seem like a lot, until you see you can discharge tens of thousands. Lawyer fees are typically more, and this can be tough if you have no job. However, it’s crucial to get a specialist in bankruptcy law so you can successfully discharge the most debt and keep all your assets. And though lawyers are never free, an experienced one can save you more money than he or she charges.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , — jmalewitz @ 1:10 pm

Unsecured Debt and Filing Atlanta Chapter 7 Bankruptcy

Secured debt is money you owe with assets such as your home and car. A mortgage would be a secured debt, because the home would be like collateral to be taken if you fall behind in payments. Unsecured debt, on the other hand, is actually debt with no collateral. Though creditors can still take collections against you, sometimes get rights to your property, the debt is different. Unsecured debt can be credit card debt, medical bills, and deficiencies after a foreclosure.

One of the best ways to eliminate unsecured debt is Chapter 7 bankruptcy. For Atlanta residents, Chapter 7 has many advantages. You can halt all collection efforts. You can eliminate debts you simply cannot afford. If you fear assets may be taken or other legal action will ensue, you can be protected under law. There are some disadvantages too. This will be a mark on your record for 10 years. You won’t be able to file again for 8 years (or 6 years if you filed Chapter 13 first). Some assets by law can be liquidated in order to pay back some of these debts; assets like a home and car are rarely included, but it happens.

Atlanta Chapter 7 bankruptcy isn’t always your best option. Sometimes filing Chapter 13 bankruptcy has more advantages. As long as your unsecured and unsecured debts are not too high, you are eligible to file, where you may not be eligible for Chapter 7 if you make too much money. If you have a lot of assets, if you’re home is in danger of foreclosure, you can keep these assets and pay debts in manageable installments.

How does Chapter 7 liquidate assets?
You will be charged with a Georgia bankruptcy trustee who will oversee your case. This trustee has the power to sell assets. However, few will lose anything: the great majority of Chapter 7 filers lose no assets. So don’t be afraid of losing your home and car. By following the laws and hiring an Atlanta bankruptcy attorney, you can save assets and discharge debt.

Will all unsecured debt be discharged?
No, the big three debts most people have are credit card, medical, and mortgage. These debts can technically be discharged, though you may lose the home if you do not pay on it. Say you have $20,000 in credit card debt; in this case, filing Chapter 7 bankruptcy can discharge these debts in a matter of months. Or say you have $50,000 in  medical bills; once again, filing Chapter 7 can eliminate these debts.

Debts you can’t discharge include alimony, child support, and back taxes. These are unsecured debts, but by law you have to pay them.

How much does it cost?
Chapter 7 bankruptcy is very reasonable for Atlanta residents looking to eliminate debts. You pay only $299 to file with the court. You should also hire a lawyer. A lawyer will cost more, from $1,000 to $2,500 depending on the time involved for your case.

Why a Lawyer?
There are hundreds of Atlanta bankruptcy lawyers who can help you, but not all are equally experienced and have fair prices. You need a professional, experienced lawyer who will walk you through this process. A lawyer actually saves you time and money, allowing you to discharge the most debt in a timely manner.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , — jmalewitz @ 1:09 pm

Tips on Atlanta Joint Bankruptcy

Joint bankruptcy is an important subject because of the major differences with individual bankruptcy, and that so many couples in Georgia have questions on whether joint bankruptcy is right for them and their families. If that sounds like you – if you’re on the fence about joint bankruptcy – this post can help.

What is individual bankruptcy?
Individual bankruptcy, still important to consider even if you and your spouse want joint bankruptcy, is the most common form. It’s the basic form of bankruptcy you feel as a single person, either with Chapter 7 or Chapter 13 bankruptcy. In most cases, debt and/or foreclosure are the key reasons for filing. For Atlanta residents with higher than average incomes, filing under Chapter 13 is becoming more common as Chapter 7 has new rules for eligibility based on income.

What is joint bankruptcy?
Joint bankruptcy is simply you and your spouse filing together. You can file either Chapter 7 or Chapter 13. In some cases you are not eligible for bankruptcy, or at least joint filing. If you or your spouse filed for individual bankruptcy a few years ago, that person will not be eligible to file again. You need to wait 7 years between bankruptcies, and you or your spouse will have to file individually. Also, the median income for Georgia residents determines Chapter 7 eligibility. If you make too much money for a family your size, even if it’s just the two of you, you won’t be eligible. If on the other hand you have hundreds of thousands in secured and unsecured debt, you may not be eligible for Chapter 13.

What differences are there?
With joint bankruptcy, the process can be much easier than filing separately. You hire one lawyer, pay one fee to him or her, pay one fee to the court instead of two, and you don’t have to worry about you or your spouse being stuck with debts if only one  files. Individual bankruptcy is not necessarily bad; it just saves time and some money if you file together. In some cases, filing together is not an option.

Why file Atlanta joint bankruptcy?
Filing together has some major pluses, as just pointed out. What we didn’t mention was the documentation. Every bankruptcy, no matter if it’s Chapter 7 or Chapter 13, takes time to file for. If you can combine your documents, putting both your bankruptcies together, you can save time. That may seem minor. You can also save $299 for filing Chapter 7 and $274 for filing Chapter 13; small, but it’s money. You will appear in Georgia bankruptcy court together. And you do not have to worry about your spouse who didn’t file being harassed to pay your debts (or the other way around).

If you’re still unsure if filing jointly is smart, contact an Atlanta bankruptcy attorney today.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , , — jmalewitz @ 2:49 pm

Before You File Georgia Chapter 13, Read This

Why not file for Chapter 7 bankruptcy instead of Chapter 13? Before you start making decisions, there are some key points you need to know. First, let’s talk eligibility for Georgia filers.

Bankruptcy Eligibility
For Chapter 7 filers, you have to be below the median income for Georgia. For Chapter 13 filers, it’s uniform: your secured debts cannot exceed $1,010,650 and your unsecured debts must be lower than $336,900. Secured debts are items such as your home and car, where the creditor can take if no payment has been made. Unsecured debts are different in that the creditor has no leverage on you via assets, such as with a credit card or medical bills.

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.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , , — jmalewitz @ 8:59 pm

Georgia Foreclosure Process Differences between Chapter 7 and Chapter 13

Georgia bankruptcy can be a complex process, which is quite often why some appeal for the experienced help of an attorney. There are some things you simply have to decide your own – namely, if bankruptcy is right for you. For home owners, there is this big burden on your shoulders called a mortgage, and a fear of that old enemy foreclosure. This blog post won’t say whether to choose Chapter 7 or Chapter 13 bankruptcy, but what it will do is guide you through the key differences when it comes to foreclosure. If you want to save your home, or get out while you can, this guide is for you.

The Discharge
Chapter 7 bankruptcy discharges debt. That’s the most simple way to describe it. And remember that major debts included are your mortgage. What any personal bankruptcy will do is put into place an immediate “automatic stay” on your home. It will be the same with your money, and your other assets. You can’t do much, your debtors really can’t do much either. If your home is in the foreclosure process, the automatic stay delays it. A creditor can appeal to the court to let the foreclosure continue. In this case, you have a 1-2 months to stay at your home until the foreclosure makes you leave. It may seem odd that you have some benefit here – free rent for a few weeks – but really it buys you just enough time to get in somewhere else.

On the other hand, if your home isn’t in foreclosure, you have more options. You can technically keep the home in many cases. Rarely do Chapter 7 filers lose assets. It’s up to the trustee, court appointed to liquidate your assets, and the law on what can be sold. In many cases, you can negotiate directly with your trustee to keep certain assets, such as your home or car.

The Hard Work Option
Chapter 13 bankruptcy for Georgia residents is quite different, and somewhat more effective to stop a foreclosure, but less common. Here again the judge will put an automatic stay on your home. As long as your lender has not put a foreclosure in the works, you can keep your home in most all cases. What happens is the court halts any further foreclosure, you are able to create a debt repayment plan, and with this plan you can pay an affordable rate on the home and your other debts. While you still have to pay, you have 3-5 years and you keep all assets. Chapter 7 is sometimes called the “wipe out,” Chapter 13 the “work-out”, for obvious reasons.

Bankruptcy is not for every situation. Just because you fear losing assets does not mean you should file. However, it’s a very good option to file Chapter 7 if you cannot afford to pay back debt, and Chapter 13 is smart if you want to stop a foreclosure before it begins. While not for everyone, each have immense benefits when it comes to saving money and assets.

Filed under: Bankruptcy Information — Tags: , , , , , , , — jmalewitz @ 12:21 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: , , , , , , , , , , — jmalewitz @ 12:34 pm

How the Chapter 13 Bankruptcy Discharge Works

In Chapter 7 bankruptcy, you’re discharging debt. With Chapter 13, you’re reorganizing it. Some  get confused in how a Chapter 13 discharge works, so this post can help.

Are you ready for bankruptcy?
First you must be sure bankruptcy is right for you. In order for Georgia residents to be eligible for Chapter 7, you must be under the median income for Georgia. That’s the average rate Georgia residents earn. Look to this POST for more details.

Who do you call?
You need an experienced bankruptcy attorney. If you’re considering bankruptcy, and you feel you’re ready, it’s wise to get professional counsel from someone. A good attorney saves you time, money, and headaches. He or she can walk you through filing and prepare you for a fresh start. For Chapter 13 personal bankruptcy, you simply have to use the skills of professional counsel.

Discharging Debts with Chapter 7
Chapter 7 bankruptcy will discharge the majority of your debts, technically paying them off by liquidating your assets. However, most lose nothing by filing this, and it’s far more common in Georgia than Chapter 13 bankruptcy. Why? You can’t discharge debt with Chapter 13; you have to pay back the debt.

How Chapter 13 Discharge is Different
You still get a discharge with Chapter 13 bankruptcy, but you will be reorganizing the debts based on a debt repayment plan. You don’t lose any debt — you just make it so you can pay over the usual course of 3-5 years. Usually you’ll be paying your judge appointed trustee. A trustee is the person who will oversee your case and pay your debts .Unlike Chapter 7, the trustee will not liquidate your assets. Once you’ve completed the repayment plan, you are discharged from debts.

Benefits of Chapter 13
So you have to pay all these bills off? What’s the point? Quite true — you do have to pay them off — but there are many key benefits. If you face foreclosure and you really want to keep the home you’ve put time and money into, you can keep it as long as you stay current on the mortgage. Chapter 13 buys you time, and most use it to save homes and other property. If you have an income, it’s wise. If you have little or no income, like most others, you may prefer Chapter 7.

After Bankruptcy
Georgia residents are almost all eligible, most will lose nothing, and get to keep their home. However, this is a much longer process than Chapter 7. For one, a discharge from Chapter 7 can occur in months, while Chapter 13 is years. So it will take some time. But once you’re done, you’ll have saved all your assets, avoided being thrown out of your home, and can get a different kind of fresh start.

Filed under: Bankruptcy Information — Tags: , , , , , , , — jmalewitz @ 8:54 pm


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