Many people are having difficult paying their bills and are facing home foreclosure. Filing Chapter 7 bankruptcy in Marietta may allow them to discharge certain types of debt within four to six months. Filing Chapter 13 bankruptcy in Marietta may allow them to create a more favorable three to five year repayment plan.

Is it the right time to file bankruptcy? It is tough to know the right answer to this question, but if you have suffered a medical crisis, divorce, death or unexpected job loss and can not regain your financial footing, filing bankruptcy in Marietta may be the right solution for you.

Filing Chapter 7 Bankruptcy in Marietta

Chapter 7 bankruptcy is considered a liquidation bankruptcy and can discharge most or all of the filer’s unsecured debt within four to six months (certain debts are not discharge by filing bankruptcy). Personal debt which can be discharged by filing personal bankruptcy in Marietta includes credit card debt and medical bills.

The first step in filing Chapter 7 bankruptcy in Marietta is to contact a Marietta bankruptcy lawyer. The Marietta bankruptcy attorney will file the bankruptcy petition in the appropriate bankruptcy court. The petition will provide the court a list of all of the filer’s creditors, debts and exempt and non-exempt assets. The bankruptcy court will review the petition, schedule the meeting of the creditors and assign a trustee to the bankruptcy case. The trustee is responsible for liquidating the filer’s non-exempt assets and using the proceeds from the liquidation to pay the filer’s debts.

Filing Chapter 13 Bankruptcy in Marietta

Filing Chapter 13 bankruptcy in Marietta does not liquidate the filer’s assets and repay the creditors, but instead allows a reorganization of the filer’s debts. The filer and their Marietta bankruptcy lawyer can create a new, restructured repayment plan to pay the filer’s creditors within three to five years. In some cases the repayment schedule may allow for more favorable repayment options.

Filing Chapter 13 bankruptcy is not available for all Marietta residents. To file Chapter 13 bankruptcy in Marietta, the filer must have a dependable income source to make the required bankruptcy payments. The filer also can not have secured debt which is greater than $807,750 or unsecured debt which is greater than $269,250.

Personal Debts Not Eliminated By Filing Personal Bankruptcy in Marietta

Filing Chapter 7 bankruptcy or Chapter 13 bankruptcy in Marietta will only eliminate debt which is defined as dischargeable under federal bankruptcy law. Dischargeable debt is the same for all of the states. Filing bankruptcy in Marietta, Georgia, does not discharge the following debts:

• Most back taxes
• Child support and alimony payments
• Certain student loans
• Purchases of luxury items within ninety days of filing personal bankruptcy in Marietta
• Fines owed to federal or California government agencies
• Debts generated from fraudulent activity
• Recent cash advances of $825 within 70 days of filing personal bankruptcy