What About Your Mortgage Loan Or Your Car Loan
Many people have a mortgage and work hard to pay off that loan each month. If you are making on time payments and are not behind, you may be able to obtain a reaffirmation agreement from your lender and the court. This simply means you are reaffirming the debt so that you are able to continue to remain present on the property, paying the debt. The lender and you must agree to continue the relationship.
If you are behind on your mortgage loan or even your car debt, you will then need to discuss with your attorney what the best step forward is. For some people, it may be possible to roll the loan into the bankruptcy, allowing you to walk away from the debt. This means you would lose the asset. However, think long term. If this the best debt to maintain or do you want a fresh start?
Northern District: Required Local Forms
The Northern District requires filers to submit a combination of federal and local forms. Local forms required for Chapter 7 filers are as follows:
All pro se filers must submit a Pro Se Affidavit.
If you donât have 60 days of payment advices , you must submit a Statement Regarding Payment Advices form explaining why.
If you want to apply for an installment payment plan, you need to fill out and submit a local application form with your bankruptcy petition.
Is Credit Counseling Required
Individual debtors are required to complete credit counseling before they are eligible to file under the Bankruptcy Code. Failure to complete the course before filing can result in your case being dismissed. Not all counseling services qualify. Our office can assist you with making the appropriate arrangements.
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How To Keep Your Home In Chapter 7 Bankruptcy Cases
To prevent foreclosure in Georgia, you must ensure that your house is not up for sale while filing a Chapter 7. You must also make sure that your mortgage payment is current. In most Chapter 7 cases, mortgage lenders will not foreclose on your house, provided you make your monthly payments on time.
Even if you are behind on your mortgage payments during a Chapter 7 bankruptcy, you can negotiate with your mortgage company outside of the bankruptcy process to adjust your monthly payments or catch up on your arrears. HUD-approved programs exist to assist homeowners with mortgage modifications to keep their houses.
What Happens After I File A Chapter 7 Bankruptcy
One of the questions our clients typically ask us is what happens after you file a Chapter 7 in Georgia. A Chapter 7 bankruptcy is a fairly quick procedure. Once you file, you have a meeting of creditors within 30 days after the filing. Then assuming nothing goes wrong in your case, such as dischargeability issues, or unlisted assets or creditors, you should receive a discharge within three to four months after you file for bankruptcy. If you have any questions, please give our office a call.
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Will Personal Bankruptcy Affect My Small Business
Sometimes, small business owners need to file for consumer bankruptcy. This may be the case because the business is a sole proprietorship or partnership or because the owners are personally liable for some of the business debts. If the business is a corporation ohttps://www.fieldlawoffice.com/consumer-bankruptcy-in-georgia/r another entity separate from its owners, an owners personal bankruptcy will not directly affect the business. However, the bankruptcy of a sole proprietor or partner puts all of the business assets at risk. We can discuss how your personal bankruptcy may affect your small business and guide you on the best procedure to follow.
How To File Chapter 7 Bankruptcy
Filing Chapter 7 on your own is fraught with risks. if you dont know what youre doing, you can miss important opportunities, or worse, get yourself in a bunch of trouble for not following the US Bankruptcy Code, which is incredibly detailed and complex. Instead, you want a knowledgeable and experienced Chapter 7 bankruptcy attorney. Our experienced professionals can take you through the steps in the bankruptcy process and provide correct guidance in this matter.
First of all, you need to take a means test to determine whether you are eligible to file a Chapter 7 bankruptcy petition.
To qualify, your income needs to be lower than the median income of your state. In Georgia, the median income for a family of two stands at $68,295 per year in 2022, but this number is always changing. And this is just the first step. Even if youre over median, our experienced chapter 7 bankruptcy attorneys can still often times get you through.
An income higher than the states median income may disqualify you from filing for bankruptcy under Chapter 7. However, if you dont have any disposable income or it is too little then you will be eligible to file for Chapter 7 bankruptcy.
Your attorney will calculate this for you by collecting all information pertaining to your monthly income and expenses.
You must attach schedules with the bankruptcy petition.
It is important to check and double check the list of debts on your schedule.
Appointment of a Trustee
Why Do Clients Choose Bournakis & Mitchell Pc
Chapter 7 bankruptcy filing is available to individuals, corporations, partners, and married couples. If a person fails to meet the required criteria for a Chapter 7 bankruptcy, the court may convert the case to a Chapter 13 bankruptcy.
At Bournakis & Mitchell, P.C., we stay current with changing rules, laws, and court rulings and pride ourselves on thorough preparation for every case.
We offer non-judgmental counsel for clients throughout GA
We find solutions to help you live debt-free
We work hard so you can get rid of debt once and for all
We inform you of your options so you can make empowered decisions
We help you take proactive steps to a brighter financial future
How Debt Discharge Works In Ga Chapter 7
Discharge means the judge eliminates the legal obligation to repay unsecured debts. Dischargeable unsecured debts usually include medical bills, payday loans, signature loans, and credit cards.
A bankruptcy judge can only discharge a debt. A judge cannot erase the debt itself or reverse the collateral consequences of debt. So, if the IRS files a lien against Tony because he has back taxes before he filed bankruptcy, that lien remains, even if the judge discharges the tax debt.
Speaking of back taxes, these obligations are priority unsecured debts. They are only dischargeable in certain situations. Other priority unsecured debts include past-due child support and student loans.
Chapter 7 filings usually remain on your credit history for ten years. However, the effects usually fade within a few months, if former debtors work to improve their credit scores. For example, to demonstrate responsible credit use, many former debtors charge items on credit cards and pay the balance in full every month.
Chapter 7 gives your family a fresh financial start. For a free consultation with an experienced Athens bankruptcy lawyer, contact Morgan & Morgan, Attorneys at Law, P.C. Convenient payment plans are available.
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Benefits Of Chapter 7
Chapter 7 is especially powerful because it allows you to get a fresh start immediately by erasing most major types of debt like credit card debt, medical bills, personal loans, and more.
Once you file, you will be protected from creditors. This means a stop to harassing phone calls, wage garnishments, collections letters, and lawsuits. Temporary stops are even put on evictions, foreclosures, and repossessions.
When your debts are discharged, you are not obligated to pay your unsecured debt. If you are eligible to file, then your debt discharge will most likely be approved and you will be able to keep most of your belongings as well!
How Chapter 7 Bankruptcy Works In Georgia
Many people we speak with care about two things:
When comparing debt-relief options, Chapter 7 bankruptcy often wins in both categories over alternatives such a Chapter 13 bankruptcy, debt negotiation, debt management, and debt payoff planning. Lets explore those variables in greater detail.
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Filing Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is designed for debtors having financial difficulty that do not have the ability to pay their existing debts. It is best suited to those cases in which the majority of debt is unsecured. Debtors can protect certain assets up to a predetermined amount. This is probably the most common form of personal bankruptcy.
To qualify for filing Chapter 7 bankruptcy, you must satisfy the standards referred to as the Means Test. A Means Test is essentially a quick check of debt to income.
A Chapter 7 bankruptcy is commonly referred to as a Straight Bankruptcy. The beauty of a Chapter 7 bankruptcy is that it will nullify your unsecured debts such as medical bills, credit cards, and personal loans. Part of the process to file Chapter 7 bankruptcy is to list all of your creditors and information such as account balances. The clerk of the bankruptcy court will notify each creditor of your filing.
When you file Chapter 7 bankruptcy you will be instantly protected against collections efforts because of the Automatic Stay. As soon as you file for bankruptcy protection you can stop making any payments to creditors. This is when your life gets better!
One limitation of a Chapter 7 bankruptcy is that it will not allow for the discharge of student loans, child or spousal support, or most tax issues.
Please do not send to us any confidential information until a formal attorney-client relationship has been established.
How Long Can Bankruptcy Chapter 7 Stay On Your Credit Report In Ga
Chapter 7 bankruptcy filings are typically reported on your Georgia credit report for ten years. Thats a long period, but its not indefinite. Furthermore, discharged obligations, such as credit card accounts, go off significantly sooner. Additionally, most new lenders look at the latest six months of credit history.
Finally, while filing for bankruptcy is a major black mark, it is preferable to repossession, foreclosure, and other negative entries. Debtors who file for bankruptcy do anything to gain control of their debt difficulties. Even in a Chapter 7 bankruptcy, debt payback is frequently required. Repossession and foreclosure entries show that the debtor resigned.
Bankruptcy lawyers in Dalton, GA do more than just walk you through the process and, if necessary, represent you in court. Our bankruptcy attorneys also provide debtors with the resources they need to begin rebuilding their credit ratings as soon as possible. !
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Georgia Chapter 7 Bankruptcy Court Locations
Many 341 meetings of creditors have been over the phone or over Zoom due to the pandemic. That said, you may want to see where the courthouse is in Georgia if there are any meetings that need to take place in person. Below are the court locations for filing bankruptcy based on the bankruptcy district.
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In addition to the above, review Georgia local bankruptcy rules before filing a bankruptcy case. Some local rules may differ slightly from the Federal Bankruptcy Rules.
Achieving Debt Relief With Chapter 7 Bankruptcy Atlanta Ga
The purpose of filing for bankruptcy is to achieve debt relief in order to rebuild a sense of financial security. Many people assume that you must lose everything including things such as your finances, your home, and your car when you file, but this is not true.
According to the Bankruptcy Code , a person who files for bankruptcy in Georgia may request certain exemptions, including interest on home loans and vehicles, any life insurance policies that have not yet matured, and other such assets.
If you are uncomfortable with all of the paperwork and ramifications of improperly filing for Chapter 7 by yourself, you can hire an attorney to represent you. Hiring bankruptcy attorneys will give you a distinct advantage because that is what they do. An attorney will know all of the Georgia bankruptcy laws and can prepare and file all the needed paperwork on your behalf. They are also available to answer any questions throughout and even after your bankruptcy is discharged.
Its not recommended to do this alone. Cherney Law Firm has over 15 years of experience helping consumers file for debt relief, reach their financial goals, and begin moving forward. Reach out to them for legal advice or a free case evaluation.
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How Much Does It Cost To File Chapter 7 Bankruptcy In Georgia
The Chapter 7 bankruptcy cost nationwide tends to be between $500 and $3000. That said, Chapter 7 bankruptcy cost in Georgia is different.
The Chapter 7 bankruptcy cost may even be different if you are filing in Columbus vs. Augusta. For example, you may pay a Chapter 7 bankruptcy attorney fee of $1,170 in Columbus, but pay a bankruptcy attorney fee of $1,170 in Atlanta.
You should check the cost to file Chapter 7 bankruptcy in Georgia for specific information about the cost in your city.
Also, there are instances where the cost to file bankruptcy can be reduced based on a filing fee waiver. You should consider seeing the information related to Georgia filing fee waiver.
Chapter 7 Bankruptcy Georgia: 3 Things You Need To Know
You may have experienced a financial hardship and are considering filing bankruptcy in Georgia, specifically Chapter 7 bankruptcy.
There are 3 important things to consider when pursuing Chapter 7 bankruptcy in Georgia:
Chapter 7 bankruptcy is the most common bankruptcy in the United States. For example, I would not be surprised if the majority of the 22,225 bankruptcies filed in Georgia in the year ending June 30th, 2021 were Chapter 7 bankruptcy.
Lets get started to understand why Chapter 7 is a popular choice in Georgia.
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Chapter 7 Bankruptcy In Ga
Chapter 7 bankruptcy can be a very valuable tool for some people. It allows those who qualify to ask the courts to forgive their debt so they gain an important fresh start. Yet, it also comes with some limitations. To determine if you will benefit from filing Chapter 7 bankruptcy in GA, focus first on your financial struggles and how well this type of change can enhance your financial future.
What Information Do I Need To Complete The Georgia Means Test
You must have your current monthly income. Income includes all of your sources of income such as business income, rental income, interest and dividends, pensions, retirement plans, and amounts that are paid to you by others for household expenses, and unemployment income.
Once you have this information, you need to subtract all of your expenses allowed under Georgia law from your income in order to determine the correct amount of income under bankruptcy law that you have available to pay your unsecured creditors in a Chapter 13 plan.
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How Long Will A Chapter 7 Bankruptcy Take To Complete
One of the questions that a lot of clients ask us is how long a Chapter 7 bankruptcy will last in Georgia. A Chapter 7 bankruptcy is a relatively quick bankruptcy. Once you come in, put in your paperwork, and then file, you have a meeting of creditors within 30 days after the file. If everything goes like it is planned, there are no objections, and you do not have any dischargeability issues, which 99% of the clients, of course, would not have, you can be out of bankruptcy within three to four months. If you have any questions concerning that, just give us a call.
Important Notes About The Means Test
The United States Trustees Office says the means test is a standardized form you must complete to file bankruptcy. When you complete the form, you will calculate your average monthly income. Then the figure will be annualized to determine your average annual income.
Here is some other important information regarding the means test.
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