Everything You Need to Know About Chapter 7 Bankruptcy in GA

Chapter 7 bankruptcy could be the solution to your mounting debt. Find out if Chapter 7 bankruptcy in GA is the right option for you. 

The Basics of Chapter 7 Bankruptcy in GA

Chapter 7 bankruptcy, also known as total liquidation, is typically the fastest way to discharge almost all financial obligations and to stop all pending collection activity, including garnishments. At Bournakis & Mitchell, P.C., our experienced Northwest Georgia bankruptcy attorney can discuss your options and determine your eligibility for filing a Chapter 7 bankruptcy.

In Georgia, Chapter 7 bankruptcy is a legal procedure that permits you to discharge your unsecured debts. Although it is uncommon, some of your assets may be liquidated to partially reimburse your creditors before the remainder of your debts is discharged. That means you’re not required to pay them!

The majority of your consumer secured debts may be eligible for relief through Chapter 7 bankruptcy, including:

  • Balance on credit card
  • Utilities not paid
  • Medical expenses
  • Personal loans with no collateral
  • Tax obligations
  • Payday advances

Bankruptcy will not release you from:

  • Domestic assistance 
  • Child support 
  • Education loans

Because Chapter 7 only allows you to discharge unsecured consumer debts, it is best suited for persons who do not own a home or other major assets.

Filing Chapter 7 Bankruptcy in GA and Debt Relief

Filing for Chapter 7 bankruptcy in Georgia may be frightening, but you will begin to receive debt relief as soon as you file. Your attorneys will file bankruptcy with the nearest bankruptcy court to start the process. Once the paperwork is filed, the Georgia bankruptcy court will issue an automatic stay, which will prevent your creditors from contacting you or attempting to collect from you.

After you file your petition, a case trustee will convene a 341 meeting and invite your creditors to oppose your debt being discharged. Even though creditors rarely show up, your attorney will make sure you’re prepared and will accompany you to this appointment.

The trustee will handle your case after the 341 meetings. Although the trustee has the authority to sell assets to repay your creditors, this rarely occurs.

Furthermore, Georgia law enables you to keep the following:

  • Up to $5,000 of personal property
  • $5,000 worth of vehicles
  • Pensions
  • Defined-benefit retirement plans
  • IRA, 401K, and 403B plans

How to Apply for Chapter 7 Bankruptcy in GA on Your Own

Every year, many Americans cannot pay off their obligations and are unable to file for bankruptcy. It should come as no surprise that attorneys’ fees account for the lion’s share of bankruptcy costs.

“Do I really need bankruptcy lawyers to file for bankruptcy?” you may be wondering.

The complexity of your case mostly determines it. If you have little property and don’t make a lot of money, you may be able to file for bankruptcy on your own (without a lawyer). However, while declaring bankruptcy on your own can save you money, it is a major undertaking.

You’ll need to gather all of your financial documents, file a large amount of paperwork on schedule, and interact with your bankruptcy trustee. You’ll also need to spend time learning about the applicable state and federal legislation.

Filing a Chapter 7 bankruptcy puts an automatic stay into effect, which stops most collection actions and prevents creditors from initiating or continuing lawsuits, wage garnishments, or even telephone calls seeking payment. The Chapter 7 bankruptcy applies to all debts excluding child support, most tax debts, and student loans.

They may not apply, however, to secured debts that the court declares non-dischargeable due to a creditor’s objection in the case of fraud or malicious action.

If you want to learn more about Georgia bankruptcy laws and you are in need of a bankruptcy lawyer, contact the Bournakis & Mitchell law firm at (706) 295-7376 for a free consultation on your case. Our attorneys will answer your phone directly, rather than paralegal staff, and help you right away!

 

Why Do Clients Choose Bournakis & Mitchell, P.C.?

Chapter 7 bankruptcy 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.

What Is the Cost of Chapter 7 Bankruptcy in GA?

Because each case and client is unique, legal fees vary.

In addition to legal fees, all filers must pay a $355 filing fee to the court. The automatic stay is not given, and bankruptcy protection is not initiated until this charge is paid. That $335 can be out of reach for many people. 

Other bankruptcy firms advertise “no-money-down” bankruptcy by offering payment plans to cover legal bills, but you still need to come up with $335 in cash before they file your case.

 

Filing Cost for Personal Chapter 7 Bankruptcy in GA

Bankruptcy fees are regulated by federal legislation and the court system, so filing for bankruptcy in every state, including Georgia, costs the same. The charge for filing Chapter 7 bankruptcy is $338, while the fee for filing Chapter 13 bankruptcy is $313. The filing fee is the same whether you use a lawyer or not, but you’ll also have to pay legal fees if you hire a lawyer.

If you cannot pay the entire cost at once, you may request permission from the court to pay up to four payments. If you petition for Chapter 7, you can also request that the court waive the filing fee entirely (this option is not available in Chapter 13).

Chapter 7 Bankruptcy Eligibility

The “means test” assesses if your income is low enough to qualify you for Chapter 7 bankruptcy. It’s a mechanism designed to prohibit high-wage workers from declaring bankruptcy under Chapter 7. High-income filers who fail the means test can utilize Chapter 13 bankruptcy to settle a portion of their debts, but they cannot use Chapter 7 bankruptcy to completely discharge their debts.

Only those who file for bankruptcy with predominantly consumer obligations rather than company debts are required to take the means test. The first stage in the means test is to assess if your income is higher than or less than the median income in your state. If you make more than the median, you must consider whether you will have enough money left over after deducting certain expenses to pay off some of your debt.

 

Chapter 7 Bankruptcy Requirements in GA

The Chapter 7 requirements under Georgia law impose limits and restrictions on who can file for bankruptcy. Before your obligations are forgiven, you must attend credit counseling with a trained credit counselor. You must also complete a debtor education or financial management course. Your attorney can put you in touch with service providers that can assist you in completing these programs.

Chapter 7 Georgia Bankruptcy Exemptions

When you file for Chapter 7 bankruptcy, you appoint a bankruptcy trustee who has the authority to liquidate your assets to pay your creditors. However, declaring bankruptcy does not obligate you to give up all of your assets.

Bankruptcy exemptions allow you to keep a limited amount of property after filing for bankruptcy, allowing you to start over. If you can exempt an asset in a Chapter 7 bankruptcy, the bankruptcy trustee cannot sell it to satisfy your creditors. The amount of property you can retain in a Chapter 7 bankruptcy depends on the value of your assets and the exemptions you can seek. Many Chapter 7 applicants keep all of their property due to exemptions.

 

Contact a Chapter 7 Georgia Bankruptcy Attorney

At Bournakis & Mitchell, P.C., we assist clients in filing for Chapter 7 bankruptcy. Chapter 7 bankruptcy, sometimes known as a “total debt liquidation bankruptcy,” has traditionally been utilized by people with limited assets but a substantial amount of unsecured debt. Contact us for a free consultation at (706) 295-7376. Our attorneys are also fluent in Spanish and Greek.

The first step when seeking a Chapter 7 bankruptcy is to file a petition with the bankruptcy court along with schedules of assets and liabilities, a statement of financial affairs, a schedule of current income and expenditures, and a schedule of executory contracts and expired leases. 

The debtor must also provide the case trustee with a copy of the most recent tax returns or transcripts, including tax returns filed during the case. Our knowledgeable Northwest Georgia bankruptcy lawyers can walk you through the process and help ensure you have the necessary paperwork to seek a Chapter 7 bankruptcy.

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. That’s a long period, but it’s not indefinite. Furthermore, discharged obligations, such as credit card accounts, go off significantly sooner. Additionally, most new lenders just look at the latest six months or so 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. Call our office at (706) 226-7867 to speak to a Dalton bankruptcy lawyer!

 

When Does Chapter 7 Bankruptcy Get Removed From Credit Report?

The bankruptcy public record is removed from your credit report seven or ten years after the filing date, depending on the chapter you filed.

Chapter 13 bankruptcy is automatically discharged seven years after the filing date since it requires at least a partial repayment of your obligations. Because no debt is repaid, a Chapter 7 bankruptcy is discharged ten years after the filing date.

What Circumstances Prevent a Debtor From Filing Chapter 7?

  • The filer can repay some of the debt.
  • The debtor’s income is too high.
  • Another bankruptcy case was dismissed within the previous 180 days.
  • The debtor failed to meet the credit counseling requirements.
  • The debtor previously discharged debt through a Chapter 7 bankruptcy in the past eight years or a Chapter 13 bankruptcy in the past six years.
  • The debtor defrauded creditors.

 

What Additional Information Does a Debtor Need to File for Chapter 7?

  • A list of all the debtor’s property
  • The source, frequency, and amount of the debtor’s income
  • A list of all creditors and the nature and amount of their claims
  • A detailed list of the debtor’s monthly living expenses, including food, utilities, tax, shelter, clothing, transportation, and medicine

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