What Kind of Bankruptcy Should I File?
A Georgia bankruptcy lawyer can help you determine what type of bankruptcy you can file for. This is based on your individual set of circumstances.
The 2005 Bankruptcy Act requires that your expenses and income both be subject to a stringent analysis. You need to meet the qualifications for a Georgia Chapter 7 bankruptcy. Consequently, if you do not, you should file a Georgia Chapter 13 bankruptcy.
The bankruptcy court will examine your average income for the last six months. After that, the court compares your income to the median income for the state of Georgia as part of a means test. If your average income is higher than the median income, the rest of the means test will determine if you qualify for a Georgia Chapter 7. If you do not, then you must file a Chapter 13 bankruptcy.
What is A Georgia Chapter 13 Bankruptcy?
There are very substantial differences between a Georgia Chapter 7 bankruptcy and a Georgia Chapter 13 bankruptcy.
A Georgia Chapter 13 bankruptcy involves you repaying your debts through a monthly payment plan. Your petition for Chapter 13 must include a copy of your proposed repayment plan. Meanwhile, you must pay reasonable monthly expenses. After that, you must show the available money you have that can go toward paying off your debts. You also need to show how you are going to divide that money between all of your creditors.
You have to pay secured debts, referred to as priority claims for such things as your mortgage, car payments, taxes, and back child support must in full. Any unsecured debts such as credit cards, medical bills, etc., generally are only partially paid for sometimes as low as 10 cents on the dollar.
Your Chapter 13 repayment plan must pass three tests to make sure all unsecured creditors are paid the same as if you had a filing of a Chapter 7 bankruptcy.
Once you’ve filed for a Georgia Chapter 13 bankruptcy, your monthly payments will start. After that, these payments are normally automatically withdrawn from your earnings.
What is a Georgia Chapter 7 Bankruptcy?
A Georgia Chapter 7 bankruptcy trustee will make sure your creditors receive as much payment as possible. The court will carefully scrutinize any paperwork you submit. Special attention is given to any assets you may have or any exemptions that you file. The Trustee can challenge any part of your case.
The 341 Meeting of Creditors, which you have to attend, is the first meeting with all of your creditors. Usually, however, no creditors attend this meeting for a Chapter 7 bankruptcy. However, one or two of them who have questions may choose to attend this meeting.
Generally, there aren’t any exemptions in a Chapter 7 bankruptcy case. Any non-exempt assets must be given to the trustee after the 341 Meeting of the Creditors.
Is Any Property Exempt From Seizure in a Bankruptcy?
Before filing for a Georgia bankruptcy, your attorney will ask you to provide all pertinent documentation which will include an itemized proof of income, two years of major financial transactions, cost of living expenses, debts, and all property you own. This property is not just real estate.
You will also need to provide your Georgia bankruptcy attorney the following:
- The last two years of tax returns
- Deeds for real estate
- Titles for any vehicle
- Any loan documents
After your Georgia bankruptcy lawyer receives these documents, he will assist you in determining what property is exempt according to Georgia’s exemptions.
How Will Bankruptcy Affect My Credit Score?
Many people believe that if they file for a Georgia bankruptcy, their credit score will be in ruins. In reality, a Georgia bankruptcy filing may actually assist you in getting your credit rating back on the right path. You may even see your credit score jump as high as 700 within two years of your bankruptcy discharge.
However, if you don’t take any action, you may continue to have late payments. Consequently, these will damage your credit score even more. To help you get your credit score back on the right track, contact Georgia bankruptcy lawyer Tyler Moffitt. He can help you regain control of your financial situation.
If you believe that a Georgia bankruptcy is your only answer to resolving your financial difficulties, before you file for a Georgia Chapter 7 bankruptcy or a Georgia Chapter 13 bankruptcy, contact Georgia bankruptcy lawyer Tyler Moffitt. He can evaluate your individual financial situation. After that, he will go over all your options with you so you can make a decision. Most importantly, this will allow you to get back on the road to financial security.