Filing Chapter 7 bankruptcy liquidates your assets to pay back debt, and discharges the majority of your debts. If you have large medical bills, credit card debt, or any other debt you have no way of paying back, Chapter 7 bankruptcy can help.
For Atlanta residents, filing any kind of bankruptcy has advantages and disadvantages. This post highlights the main advantages and disadvantages of filing Chapter 7 bankruptcy in Atlanta. You should also be aware of Chapter 13 bankruptcy, and how it’s different from Chapter 7 bankruptcy. Contacting a Georgia bankruptcy attorney can help you understand the details.
Time of Filing
You typically file Chapter 7 bankruptcy and get debt discharged within 3-6 months. That’s timely for those under pressure of major debts. You will be debt-free except for certain debts like mortgage, car payments, and other nonexempt items.
Debts Discharged
Most of your debts will be discharged, including credit card debt. You often won’t lose your house, but you still have your mortgage.
No Payments to Creditors
You can stop paying creditors, which often stops harassment. This helps rebuild your finances. If creditors continue to harass you, you can direct them to your attorney.
Keep Most Property
While you can technically lose some property, most Atlanta residents lose a minimum of property after Chapter 7 bankruptcy. You can’t technically clear all your debts, and you might lose your home, but the misconception is that Chapter 13 is better because you keep all your property.
Chapter 13 Bankruptcy In Atlanta
While Chapter 13 bankruptcy is now more common for Atlanta residents and US citizens, Chapter 7 bankruptcy does more than buy you time. You can discharge the majority of your outstanding debts.
Disadvantages for Chapter 7 bankruptcy should be noted. You cannot lose certain type of debts, such as mortgages, student loans, most taxes, and unpaid child support.
Also, you may not be eligible for Chapter 7 bankruptcy in Atlanta. With recent laws, if you now have enough income to do a repayment plan via Chapter 13 bankruptcy, the courts can now take Chapter 7 off the table. It does matter on how much you make, your monthly expenses for things like child support, tax debt, secured debts such as mortgages and car loans, and other forms of debt.
Chapter 13 bankruptcy clearly has advantages too, but if you’re problem is that you simply cannot pay back all your debt, whether it’s medical bills, credit card debt, or other forms of debt, Chapter 7 bankruptcy is the answer.
For Atlanta residents, choosing between Chapter 7 and Chapter 13 bankruptcy can be tough. The best decision you can make is hiring professional Atlanta bankruptcy lawyer who can tell you 1) what you qualify for and 2) help you through the entire process.






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