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.

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.

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.

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.

There are cases where you might desire filing in Georgia Bankruptcy Court with Chapter 13 bankruptcy. This too can give you a fresh start if you want to rework your debts, buy time to keep your possessions, and save your home from foreclosure.

Which is better, Chapter 7 or Chapter 13? In the past years, both have been used by millions across the country. And in Georgia, unfortunately the rates for both are have been high in recent years. Why are so many filing? Because quite often the advantages outweigh the disadvantages.

Chapter 7 bankruptcy does more than eliminate debt. It can also buy you time to stay in your home with what’s called an “automatic stay,” it can immediately stop creditor harassment, and you can get that fresh start.

Chapter 7 bankruptcy can save both individuals and families.

Families can file joint bankruptcy to consolidate debt. It’s far better than working with a debt consolidation company. If a wife loses her job, and the husband cannot support the family and pay debts on his own, Chapter 7 bankruptcy can discharge thousands if not tens of thousands in debt. Even better news, rarely will Georgia bankruptcy filers lose any assets.

What happens is you hire a bankruptcy attorney, file for Chapter 7 in the Georgia Bankruptcy court in your area, and meet with a trustee. This trustee will hold what’s a called a 341 meeting, where you appear and answer questions regarding your filing. In this short session, with the help of a Georgia attorney you will confirm your right to filing Chapter 7.

Once you get it over with, your debts can be discharged in a matter of months. In Chapter 13, it typically takes 3-5 years for the debt management plan, and you have to pay back debtors.

One negative often addressed is that you may lose valuable assets such as your home and car. True, the trustee can sometimes sell these in order to pay back your debts — that’s his or her job. However, rarely does this occur, and you can often negotiate with the trustee yourself to pay the debt for our car or home and keep it.

As you can see, Chapter 7 bankruptcy should not be  scary. It’s a decision thousands of Georgia residents make every year.  You can get the fresh start and lose practically nothing.

There are many details to filing bankruptcy, and much that can happen outside of your control. You may or not be eligible for a specific bankruptcy, you may lose nothing or you may lose a lot, you may lose your home or you may save it–these are all decisions made in court based on your situation. It’s understandable to have some fears, but the more you know the  less you have to fear.

The good news is most bankruptcy filers, especially Chapter 7 bankruptcy filers, lose practically nothing. And successful Chapter 13 filings can often give you the extra time to put your finances in order. So who decides what of yours is sold? It’s not really based on the fact you deserve it or you don’t. It depends on your current assets and what you owe.

The first step to stopping fear is to hire an experienced lawyer.

Who should you hire?
Who you hire may have a bigger effect on your bankruptcy than you know. Just in 2009, over 1 million people filed bankruptcy. The majority hired bankruptcy lawyers, opting to go with experience. The problem is the number of lawyers who specialize in bankruptcy make one lawyer taking on 10 if not more cases a reality. You should hire someone who can help influence the court decision by turning in correct paperwork, spend adequate time with you, never misses a court date, and can educate you on how you should act.

What decisions are made in court?
Many decisions are made out of court, but once you file for bankruptcy, many processes go into motion. If you file Chapter 7 bankruptcy, you will appear in court briefly and most likely be done. In Chapter 13, which can be a longer process, you appear for a longer period.

You can expect questions in court. The following may be asked by the judge.

Do you own a home?
Have you transferred any property?
Do you have the right to sue anyone for bodily injury?
Have you listed all of your debts and assets?
Are you expecting to inherit money shortly?

In chapter 13 filing, you will likely be asked more questions. But it still takes only 10-15 minutes and you’re done.

Are you eligible?
The court does make the decision on whether you are eligible. It depends on your state. If you’re a Georgia resident, your income levels must be lower than the state median income. This varies depending on how large your family is. Look to this POST for more info on eligibility in Georgia.

What will you lose?
Most bankruptcy filers happily lose nothing. For instance, in the majority of Chapter 7 cases, where a trustee liquidates your assets, you lose nothing. In and out of court, the decision will be out of your hands.

What does the Trustee do?
The trustee’s job is to first make sure you are eligible, and second to ensure your documents are correct.

What happens upon successful filing?
In Chapter 7 cases, your discharge occurs only a few months after a decision. In Chapter 13, you are in it for the long haul–3-5 years.

A common question we hear is, what common debts can be discharged by filing bankruptcy? The advantage of bankruptcy, especially personal Chapter 7, is that you can eliminate the majority of your debts in a matter of months. However, you must be eligible, certain debts cannot be discharged,and you may lose assets.

What common debts can be discharged?
In some cases, you can discharge almost all of your debt. There are some debts you cannot discharge, including: taxes, alimony, and child support. However, you can technically discharge your mortgage, car payment, credit card debt, medical bills, and some other debts you owe.

Bear in mind, when you discharge debts, it’s not a free deal. While most of the time you can discharge debts, those debts come with a price. If you discharge your mortgage, your home will most likely be taken. If you cannot stay current on your home, you may have no other choice. If you discharge your car, technically this can be sold as well. This is Chapter 7 bankruptcy law, so let’s go over that and how Chapter 13 can help you.

Why file Chapter 7?
Chapter 7 bankruptcy is a liquidation. The biggest benefit is getting a fresh start. You may lose some if not many assets, but in most cases you lose nothing and discharge thousands if not tens of thousands in debt. If you file Chapter 7, creditors have no more reason to contact you. A common Georgia debt is credit card debt, and with Chapter 7 bankruptcy you can discharge all your debt for a minor loss.

Why file Chapter 13?
Chapter 13 bankruptcy on the other hand has the opposite effect: you do not liquidate your property. You want to keep your property in most cases. Sometimes you may not be eligible for Chapter 7 and be forced to file under Chapter 13. Why? If you make too much, the current Georgia median income is how this is factored in, you won’t be eligible for chapter 7.

Now, Chapter 13 has many advantages. You’ve been paying off your home for years if not decades. You love the place, but fear foreclosure is on the horizon. Now is the time to act, because if you wait to long and the bank forecloses, you have little choice but to let them take it. If you act beforehand, if you hire an attorney and file under Chapter 13, you can save your home and car. This works well if you have the money, a job, and can afford to keep up with the payments. Chapter 13 allows you to pay debts over a 3-5 year span, keep your car and home, and rebuild your finances.

Why not do nothing?
In some cases, people do nothing because they have nothing. While this strategy may seem odd, it does work in some cases. If you have lots of debt but few assets, it’s an option. However, most will want to take action immediately. Doing nothing can be very dangerous, though it’s an easy step.

What should you do? We recommend you consider your personal bankruptcy options, hire a lawyer, and immediately act to protect your financial future.

Just what form of personal bankruptcy should you file?  What forms are you eligible for? How much will it cost? And what should you look for in a Georgia lawyer?

This post helps.

Forms of Personal Bankruptcy
Since foreclosure is less common in Georgia than some other states, but since unemployment is still relatively high, there are many choices to make in filing bankruptcy. An experienced Georgia bankruptcy attorney can help you, but first you need a quick education on the subject.

Chapter 7 bankruptcy is the most common, but in Georgia eligibility can be a problem. Chapter 13 bankruptcy is very good for home owners, but if you’re unemployed, you may have trouble filing.

Chapter 7 bankruptcy can in fact eliminate all your credit card debt, and many lose practically nothing in assets sold. Chapter 13 can in fact save your home from foreclosure, and you can get more time to pay other bills as well.

Eligibility for Bankruptcy
If you make too much you may not be eligible for Chapter 7. The general rate is the median income for  Georgia residents. Here is a breakdown.

1 Georgia Resident: Yearly Income $40,691
2 Georgia Residents: Yearly Income $55,258
3 Georgia Residents: Annual Income $61, 104
4 Georgia Residents: Annual income $68,502

If you make more than these numbers, you have to file Chapter 13. Most people are eligible for this.

If you have more than $360,475 in unsecured debts and over $1,081,400 in secured debts you cannot file Chapter 13.

Lawyer Fees for Bankruptcy
Since filing personal bankruptcy itself is very cheap–$299 for Chapter 7 and $274 for Chapter 13–it’s also good to get a barometer on lawyer fees. These do vary depending on experience. You should, as a rule of thumb, contact several and ask for general rates and if they charge for initial consultations. The general rates for most personal bankruptcy is higher than filing fees, usually between $1,000 and $2,000.

You Can’t Afford a Lawyer?
Filing bankruptcy is a tough task to do alone. You should really consider how you can put the money together. Factor in how much money you’d lose if this bankruptcy failed. For instance, what if you have $20,000 in credit card debt? What if you were about to lose a $100,000 home?

In some cases, you can’t afford a bankruptcy attorney. But in most instances, they’ll be able to work with you, especially if you are working or have an income.