Keeping Your Home In Chapter 7 Bankruptcy
In addition to making sure that your home is not subject to sale when filing a Chapter 7 in Georgia, you must be sure that your mortgage payment is current in a;Chapter 7 in order to avoid foreclosure in Georgia. Mortgage companies will not normally foreclose on your home in a Chapter 7 if you keep your monthly payments current. Even if you are not current on your mortgage payments in a Chapter 7, you can work with your mortgage company outside of the bankruptcy case in order to modify your monthly payments or address the mortgage arrears. There are HUD-approved programs to help homeowners work on mortgage modifications to save their homes.
You May Like: Can You File Bankruptcy On Your Own
How Is The Georgia Chapter 13 Plan Payment Calculated
Georgia Chapter 13 plan payments depend on several factors.;For example,
- Mortgage Arrearage You must catch up on the balance of past due mortgage payments to keep your house in Chapter 13. In addition, you also must pay your normal mortgage payments outside of the plan.
- Car Loans You may have several options for paying a car loan. One such option includes lowering your car loan payments, assuming you meet requirements. Typically, most debtors pay their car loans in full through the Chapter 13 plan to save money.
- Priority Unsecured Debts These debts must be paid in full through your Chapter 13 plan. For example, they include back taxes, alimony, child support, most debts owed to the government, restitution, and administrative amounts .
- Non-exempt Assets If any assets have non-exempt equity, you must pay an amount equal to the non-exempt equity to your unsecured creditors.;
- Disposable Income You must pay an amount equivalent to your disposable income to your unsecured creditors.;
Not all debts can be satisfied through bankruptcy. Priority unsecured debts that must be paid in full for both Chapter 13 or Chapter 7 include alimony, child support, and most taxes. You must also pay any back mortgage payments in full if you want to keep your home.;However, a Chapter 13 plan allows you to repay these debts in full over three to five years.
Should I File Bankruptcy
Many people have a lot of debt.; Trying to pay off debt can often feel scary or frustrating.; But, bankruptcy is not for everyone who feels this way.; Bankruptcy should be considered only when it can help you change your financial situation for the better.; There are several types of bankruptcy including Chapter 13 and Chapter 7 .;;;The type of bankruptcy you qualify for may depend on your individual income and/or the amount of debt you have.
Things to consider:
- Sometimes, your income and/or property already is protected from creditors WITHOUT filing bankruptcy.; Therefore, there may be no reason for you to file bankruptcy.;;
- On the other hand, if you are in danger of having your wages garnished or property seized, bankruptcy may be the best solution.
What kinds of income are protected from creditors WITHOUT filing bankruptcy?
Certain income is protected from creditors WITHOUT filing bankruptcy.; These protections come either from D.C. law or federal law.;
If your only income is from one of the following sources , you may NOT need to file bankruptcy:
- After-tax wages from work of $217.50 each week or less
- Social Security benefits
What kinds of property are protected from creditors WITHOUT filing bankruptcy?
Certain property is protected from creditors WITHOUT filing bankruptcy.; These protections come from D.C. law.;
If your only property is one of the following , you may NOT need to file bankruptcy:
What if I’ve been denied employment or housing because of my poor credit?
You May Like: Will My Spouse’s Bankruptcy Affect Me
Going From Chapter 7 To Chapter 13 Bankruptcy
Filing for Chapter 13 bankruptcy after a discharge of debts under Chapter 7 is often referred to as a Chapter 20 bankruptcy. Heres how it works: Under Chapter 7, all applicable debts are discharged. After four years, if the filer is still paying off debts or has missed secured debt payments, the filer may seek out Chapter 13 bankruptcy to rearrange their debts so they are easier to pay off in the next three to five years.
Though debts such as credit card bills or car loans are not discharged in a Chapter 13 bankruptcy, they are modified. Plus, interest fees and related charges will not accrue during the Chapter 13 payment plan period.
Can I File For Bankruptcy Twice
Chapter 7 Bankruptcy If you have previously filed a Chapter 7 bankruptcy and received a discharge in your previous case then you can file for bankruptcy again and you can be entitled to another discharge in the following situations:
- Chapter 7 Bankruptcy If you need to file for Chapter 7 Bankruptcy after you have filed a previous Chapter 7 bankruptcy and received a discharge, then you need to wait 8 years from the date you filed your previous Chapter 7 bankruptcy. If you file prior to the 8 years, then you will be denied a discharge. If you are denied a discharge, then you will still be legally responsible for your debts. You start to count the 8 years from the date you filed your previous Chapter 7 bankruptcy. If you filed your previous Chapter 7 bankruptcy in ;July of 2000, then you are eligible to file again and get a discharge in July 2008.
Chapter 13 Bankruptcy If you have previously filed a Chapter 13 bankruptcy and you received a discharge in your previous Chapter 13 bankruptcy then there are time limits for filing another Chapter 13 or Chapter 7 bankruptcy. You can file for bankruptcy again, but there are time limits in order for you to obtain a full discharge of your debts.
Brian Cahn, senior partner with Perrotta, Cahn & Associates
We have offices in: Cartersville, Calhoun, Dalton and Dallas
Serving clients in: Bartow, Floyd, Paulding, Cherokee, Polk, Whitfield, Douglas, Cobb, Fulton, Chatham, and all of Northwest Georgia.
Also Check: How Bad Is A Bankruptcy On Your Credit
Your First Bankruptcy Ended With A Chapter 13 Discharge
If you completed a debt repayment plan and were granted a chapter 13 discharge, you must wait 2 years before you can receive another chapter 13 discharge and, as a general rule, you must wait 6 years before you can receive a chapter 7 discharge. The waiting period is measured from the day you filed your previous chapter 13 petition to the date you file your new petition.
An exception to the 6 year waiting period for filing a chapter 7 petition applies if you paid all of your unsecured creditors in full before you received your chapter 13 discharge, or if you paid 70 percent of your debt in the chapter 13 plan and the court concludes that you made your best effort to pay your creditors. If you are thinking about filing a chapter 7 bankruptcy after receiving a chapter 13 discharge, you should consult a bankruptcy attorney to make certain that you are filing on a date that will entitle you to a new discharge.
Georgia Exemptions V Federal Bankruptcy Exemptions
Each state has a set of bankruptcy exemptions, and a list of federal bankruptcy exemptions exists too. Federal exemptions usually come into play when a filer can’t claim a state of residence. For instance, this can happen if the debtor has been out of the country or in the military.
Some states allow their residents to choose either the state exemption list or the federal exemption list, but Georgia isn’t one of these states. You’ll have to use Georgia’s exemptions. However, you can use federal nonbankruptcy exemptions in addition to the state exemptions.
You can learn more about how bankruptcy exemptions work, which state exemption system you should use, and the homestead exemption rules in Bankruptcy Exemptions What Can I Keep When I File for Bankruptcy?
Don’t Miss: How Do You File For Bankruptcy In Sc
Your First Bankruptcy Petition Did Not Result In A Discharge
If you filed a bankruptcy petition under chapter 7 or 13 that was dismissed before you were granted a discharge, you can usually file a new petition at any time. There are certain exceptions to this rule that depend upon the reason for the dismissal. You should before filing the second petition to learn whether a waiting period applies in your case.
If you filed a bankruptcy petition under chapters 7 or 13 and the court denied a discharge, you can generally file a new petition at any time, but you usually cannot receive a discharge of debts that you listed in the first petition. Again, you should consult a bankruptcy attorney to learn whether exceptions to the general rules apply in your specific case.
Which Comes First: Divorce Or Bankruptcy
Whether to first file for divorce or bankruptcy will depend entirely on your unique situation. Generally, if you and your spouse are on amicable terms, it can be advantageous to file bankruptcy first if your joint income qualifies you to file a Chapter 7 bankruptcy. This can also help to streamline the property division process in an eventual divorce. Chapter 7 can eliminate most unsecured debts, including:
- Debt from medical or hospital bills
- Personal loans
- Utility bills
However, Chapter 7 will not discharge or eliminate all types of debt. You will still be responsible for paying alimony or spousal support payments, child support obligations, student loan debt, certain recent tax debt, court fees, government fines or penalties, and more.
When you are not eligible to file a Chapter 7 bankruptcy, it may be beneficial to divorce first before filing bankruptcy separately. This is for two main reasons: 1) Filing a Chapter 13 bankruptcy can take far too long for a couple planning to divorce 2) This could allow both spouses to meet the eligibility requirements for a Chapter 7 bankruptcy separately.
You May Like: Can You File Bankruptcy And Keep Your Home
Find Out How Much Time Must Pass Between Bankruptcy Filings To Qualify For Debt Discharge Again
Nothing in the bankruptcy laws restricts you from filing for bankruptcy whenever you’d like. But, if you want the court to wipe out qualifying debt by issuing a discharge which most people dotiming requirements exist. How long you’ll have to wait will depend on the type of bankruptcy you intend to file, as well as the type you filed previously, when you filed it, and the outcome.
How To Convert From Chapter 13 To Chapter 7 Bankruptcy
In cases where your income is too high for Chapter 7, the court will determine how much disposable income you have in order to pay off some or all of your debt in a Chapter 13 plan should you choose to go that route. The Georgia bankruptcy court looks at your income and subtracts debt payments, living expenses, and any other required payments to see what amount you can feasibly pay off each month.
Many times when a person is in a Chapter 13 bankruptcy, they will be unable to keep up with their payment plan. When this happens, it is possible to convert from Chapter 13 to Chapter 7 bankruptcy.
There really are no tricks to filing for bankruptcy in the state of Georgia. It has to do with whether you qualify or not. If you are in a situation that you think you may not qualify for Chapter 7, you can always speak to your attorney about Chapter 13. By taking the means test, you will be able to see if you qualify for Chapter 7 or Chapter 13.
If you are considering whether a Chapter 7 bankruptcy is right for you and you live in the state of Georgia, feel free to contact Cherney Law Firm. We are only a phone call or email away and we can answer any questions that you have. Cherney Law has handled thousands of bankruptcies in Georgia. We have seen every situation; there is no need to feel shame, we are here to help.
Recommended Reading: How Long Does Bankruptcy Stay On Record
What Happens If I Make A Mistake In My Bankruptcy Papers
Both you and your bankruptcy attorney have to make a reasonable investigation to be sure that everything in your bankruptcy papers is correct. If you or your attorney dont do this, either or both of you may be ordered to pay costs and attorneys fees to your creditors.; However, no fees and costs can be assessed against an attorney who represents a debtor with household income below the state median. Fees and costs also cannot be assessed against an attorney who represents a debtor in a Chapter 13 bankruptcy.
Middle District Of Georgia Requirements
The Middle District of Georgia has an office in Columbus and Macon. Even though there are only two offices for this district, you are able to file your Georgia bankruptcy forms in several locations, depending on the county you live in. If youâre filing in this district and donât have an attorney, you will find a detailed overview of what you need to know on the court’s website.
Read Also: How Long Do Bankruptcy Restrictions Last
How Many Times Can You File Bankruptcy In Ga
How Many Times Can You File Bankruptcy In Ga. Any time you intend to post any promotion, message the mods ahead of time. Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts.
A person can receive one bankruptcy discharge within a specified time period. Many ask how the time frames can be shortened because they are in need. There is no limit to how many times you can file bankruptcy, but your debts can only be discharged within certain time limits. Bk is always done by people in severe hardship.it really isn’t for when to file bankruptcy is an intricate and delicate matter that should only be determined after discussion with an experienced bankruptcy attorney and. Keep reading to learn how often you can file bankruptcy in.
Keeping Your Car In Chapter 7 Bankruptcy: Reaffirmation Agreements
Another question you may have about bankruptcy is if you can keep your car in a Georgia Chapter 7 bankruptcy. The answer is yes. In a Chapter 7 bankruptcy, you can keep normally keep your car. If you own your car outright, then you will have to make sure that you have enough exemptions to protect the vehicle from sale by the trustee.
In Georgia, the exemption for a car is $3,500 per debtor. If your car is worth more than $3,500, there is a possibility that you can apply an additional $5,600 exemption to keep your car in bankruptcy. If you have a car loan, you must keep your payments current in order to keep your car in bankruptcy. You may also be required to sign what is called a reaffirmation agreement to keep your car in bankruptcy. A reaffirmation agreement requires you to keep continue to be obligated to your car creditor, even after the bankruptcy case is closed.
Don’t Miss: How Do You File Bankruptcy In Oregon
How Do I File Bankruptcy
Do I need a lawyer to file bankruptcy?
You do not have to have a lawyer to file bankruptcy.; You are allowed to file the petition yourself.; However, the decisions of whether to file, when to file, and how to complete the bankruptcy forms are all complicated.; A lawyer may be able to help you sort through some of the issues and help you prepare the petition.
How can I find a bankruptcy lawyer and what if I can’t afford to pay for a lawyer?
- Go to the “Find a Lawyer” tab above for a list of agencies that may be able to help for free if you qualify, or to the link at the bottom under that same tab that explains how you can locate a lawyer for a fee.
- If you decide to hire a lawyer, you and the lawyer must sign an agreement before the lawyer helps you specifying how much the lawyer will charge and what services s/he will provide.
How much does it cost to file bankruptcy?
The court cost and administrative fees to file a Chapter 7 bankruptcy is $335.00 as of June 2016, but these fees increase from time to time.; The up-to-date fee schedule can be found here.; Lawyer fees are extra if you decide to hire one.; In certain cases, the court may allow the court fees to be paid in installments or waived.
Where do I get the forms?
How can I get my credit report?
Dealing With Your Car
There are several things related to your car that you have to keep in mind when filing Chapter 7 in Georgia. The value of the car will determine whether the trustee that is handling your case will be interested in it. If you donât have a car payment, then you can keep your car as long as its resale value is less than the available exemption .
If you have a car payment you probably don’t have non-exempt equity that the trustee would be interested in. In that case, the main question you should ask yourself is whether you can afford the car payment. If itâs not a hardship, it may make sense to keep the car and enter into a reaffirmation agreement with the lender.
The Northern District of Georgia has a Reaffirmation Project and provides a comprehensive guide for self-represented debtors. If you do not want to keep your car after filing bankruptcy in Georgia, you can surrender the car and discharge the debt.
Don’t Miss: How Long Will Bankruptcy Be On My Credit Report
