Thursday, March 27, 2014

Do I Qualify For Bankruptcy in Georgia?

Chapter 7 bankruptcy wipes out most, if not all of your debt, leaving you with a clean slate.  In order to qualify for chapter 7 bankruptcy, you must pass a "means test."  The test analyzes your income over the previous six calendar months and projects an annual income. The means test is very tricky; talk to an experienced bankruptcy attorney to find out if you qualify.  

Chapter 13 bankruptcy allows you to pay back your debt over time. In order to qualify for a Chapter 13 bankruptcy, you will need to meet two general income requirements. First, you must have a regular source of income. Second, you must have sufficient disposable income. Basically you must have at some income left over to pay to creditors after you subtract your living expenses from your monthly income. Chapter 13 bankruptcy often provides much greater protection to debtors who own significant assets or have income that would not be exempt in a Chapter 7. Most people filing for Chapter 13 bankruptcy are trying to protect a secured debt from being foreclosed or repossessed, such as a home or a car.

King and King will evaluate your situation and determine if Chapter 13 or Chapter 7 bankruptcy is right for you. Call our office today at 404-524-6400 for a free, confidential consultation to discuss your options or visit us at

Friday, March 7, 2014

Should I Try To Pay A Creditor Before I File Bankruptcy?

While attempting to pay a creditor before you file bankruptcy may sound like a good idea, if you pay a creditor more than you are paying your other creditors, then that “favored” creditor may be required to give back that extra money so that it is shared among all the creditors.

The bankruptcy court will look at your debts and your rate of repayment. So it’s possible the creditor you were trying to keep out of your bankruptcy case may have to get involved. He or she may be asked by the court to return the money you paid for redistribution.  Payments to favored creditors become an issue when they are discovered after your bankruptcy is filed, so be sure to disclose all creditors to your bankruptcy attorney.

If you will need to file a bankruptcy, before you pay anything to a relative or any other kind of creditor, schedule a free consultation with a King and King experienced bankruptcy attorney. Call us at 404-524-6400 or visit us online at