Friday, February 1, 2013

Chapter 7 Bankruptcy in Georgia

Chapter 7 Bankruptcy in Georgia

A Chapter 7 case is the most common form of consumer bankruptcy; it is limited to persons who have income below a certain level.  In a Chapter 7 case, the person is forgiven from paying certain debts in an attempt to provide a "new beginning" on life.   The debtor is permitted to keep a certain amount of belongings while a Trustee collects all of the "non-exempt assets" and sells them in order to pay as much to the creditor as possible.   Creditors get paid in order of their priority, with debts such as child support, taxes, and trustee expenses being paid first. 

Certain property is exempt, such as a vehicle, equity in your primary residence, retirement accounts and benefits, and various types of household goods and personal property.  In most cases, the debtor does not own sufficient non-exempt assets of value to make it worth the Trustee’s efforts to collect and sell them. 
Certain debts cannot be discharged in a Chapter 7 bankruptcy, such as alimony, child support, fraudulent debts, certain taxes, student loans, and certain items charged  (we may be able to answer your Georgia exemptions questions during a free consultation). Usually, large credit card debt and other unsecured bills coupled with few assets typify a Chapter 7 bankruptcy filer. In the vast majority of cases this type of bankruptcy is able to completely eliminate all of the filers debts.

Upon filing your Chapter 7 case, bankruptcy will brings an automatic stop to collection calls, collection law suits, judgments, garnishments, pending car repossessions and even home foreclosures.  This may give you some breathing room.  However, the mortgage company or car creditor may still pursue their rights to take your house or car at a later date if you remain behind on payments.  Still, Chapter 7 bankruptcy may give you the critical time you need to eliminate or renegotiate your debts.

Bankruptcy laws are complex, be sure to speak with an experienced bankruptcy attorney before going forward.  The bankruptcy attorneys at King and King will provide you with a free consultation. Call us today at 404-524-6400


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