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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