Bankruptcy is a legal process through which people who are in debt can often find financial relief. In many cases, bankruptcy can help eliminate debts and put you in a better financial position than you were in shortly after filing. To find out if bankruptcy is right for you, you should discuss your financial situation with an experienced bankruptcy attorney as soon as you can.
Chapter 7 Bankruptcy
In a Chapter 7 bankruptcy, your non-exempt assets are liquidated in order to pay off as much of your debt as you can. The proceeds from the sale assets that you have will be distributed to your lenders, and the remainder of your debts will be discharged (provided they are not non-dischargeable debts like past-due alimony or child support). Some assets, like your car or home, are exempt in some circumstances.
The most common reasons to declare a Chapter 7 bankruptcy include:
- Prolonged unemployment
- Large medical bills
- Overutilization of credit
- Sudden illness or disability
- Marital dissolution
These are just a few of the reasons you may consider filing a Chapter 7 bankruptcy. An attorney can help you determine whether Chapter 7 is right for you, given your circumstances.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a type of reorganization bankruptcy that allows filers to keep their assets while making payments towards their debts. Chapter 13 is appropriate when:
- You have a regular and secure income
- Your tax returns are up to date
- Your unsecured debt is less than $400,000, and your secured debt is less than $1.1 million
- You have not had a bankruptcy discharged in the last two years
Talk to a Georgia Bankruptcy Attorney Today
Declaring bankruptcy is a big decision, but it can also be the start of a brighter financial future. At Moffitt Law, we have years of experience helping our clients navigate bankruptcy. Call us at 762-208-5723 to book a consultation on bankruptcy protection today.
Frequently Asked Questions
Can I keep my car if I file Chapter 7 bankruptcy?
In many cases, you can keep your car during a Georgia Chapter 7 bankruptcy. Georgia allows for a $5,000 car exemption. This means that if you have less than $5,000 equity in your car, you can keep your vehicle.
Georgia also has a $5,000 wild card exemption which can be applied to your car or any other property. If you do not use that for any other debt, you can use that to keep your vehicle. If you have more than $10,000 equity in your car, it may be liquidated to pay your debts. You would be paid the exemptions, and the rest will go towards your debt payments.
Do I have to declare bankruptcy if my spouse does?
You do not have to declare bankruptcy if your spouse does. You may still be liable for certain debts and collections if you do not file for bankruptcy when your spouse does.
Do I need a lawyer to file for bankruptcy?
While certain can file bankruptcy by yourself, that doesn’t mean you should. Working with a bankruptcy lawyer will ensure that you obtain the best possible outcome in your case.