Frequently Asked Questions About Bankruptcy In Georgia
Why would I want to declare bankruptcy?
You may want to declare bankruptcy to cancel debt that you are no longer able to pay due to changed financial circumstances. In most cases, a debtor will be promptly discharged from all or most pre-bankruptcy debt, and can receive a fresh start on their economic life.
How often can I file for bankruptcy?
You can file for bankruptcy once every 8 years. Therefore, one who successfully declares bankruptcy should take great steps to ensure that he or she will be able to manage their finances properly afterward.
What is Chapter 7 bankruptcy?
Chapter 7 bankruptcies can be declared when a debtor is unable to pay his bills and is being harassed or threatened with suit and/or garnishment by creditors. If the Bankruptcy court permits bankruptcy, the person is relieved of all the applicable debts.
What is Chapter 13 bankruptcy?
In a Chapter 13 bankruptcy, the debtor pays some or all of their debt with proceeds from future
income. Basically, a new re-payment plan is scheduled based on the amounts of future income
reasonably anticipated by the debtor. Chapter 13 bankruptcies are
frequently used in foreclosures of real estate with substantial equity, seriously past due
automobile payments under threat of repossession, and where co-obligors (co-signors) of
debt are involved.
What about taxes, student loans, alimony and child support?
Generally, taxes, student loans, alimony and child support are not usually dischargeable in bankruptcy. These
debts must be paid except under unusual circumstances. Therefore, even if you declare
bankruptcy successfully and your other debt is dischargeable, you may still have to pay
the IRS, the student loan lender and/or your ex-spouse. Certain other obligations may also
be excepted from your bankruptcy discharge.
What types of property can I keep after declaring bankruptcy?
Generally, some common examples of property each individual might be able to keep in Georgia are:
- $10,000 - in real estate equity
- $3,500 - in automobile equity
- $5,000 - in household furnishings and wearing apparel
- $500 - in jewelry
- $500 - in professional items/tools of the trade.
There are many other examples of property one may keep after declaring bankruptcy, but they are
less common. Further, being able to keep these types of property may be subject to some
restrictions. Finally, you
may be able to keep open the accounts related to some of your property, and keep the
property (e.g. home or automobile) at the same time.
If I can't afford to pay my bills, how can I afford an attorney?
Declaring bankruptcy is an important event. At a minimum, you will have to appear at a meeting of
creditors, before a Bankruptcy Trustee and possibly before a federal bankruptcy judge. Trying
to cut costs will often result in very costly mistakes. Since you will not be able to declare
bankruptcy again for over 8 years, you want to make sure you have correctly declared bankruptcy
the first time. An experienced attorney can make a big difference in how smoothly your case will
run in court. You will want to have an efficient appearance in court which will depend on the
thoroughness of your attorney. Navigating the federal court system without proper legal training
is not advised. It is usually to your advantage to hire well-trained legal representatives. Our law
office accepts payments in installments.
"We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code."
This above statement required by 11 USC 528
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