Thinking about bankruptcy? The bankruptcy lawyers at King and King LLC in Atlanta, Georgia can help. Call 404-524-6400 for a free bankruptcy consultation.
In Bankruptcy Can I Can I Pay Certain Creditors First?
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The answer is simply no. In fact if you pay a creditor more
than you are paying to your other creditors, then they may be required by your bankruptcy
trustee to give back that extra money so that it is shared among all of your
creditors, although this situation is very uncommon in the typical bankruptcy.
In both Chapter 7 and Chapter 13 bankruptcy, your bankruptcy
trustee will want to be sure you did not defraud your creditors by paying one
more than another. They will review your
information for “insider” payments. An “insider”
is a relative, friend, or business associate. Any payment or property transfer of over $600
in the year before your bankruptcy may be reversed. This scenario very rarely arises.
Your Georgia bankruptcy attorneys at King and King will know
what the standard procedure is in your local bankruptcy court. Call King and
King for a free consultation today 404-524-6400.
List of documents you will need to file Bankruptcy in Georgia.
At your initial consultation with a bankruptcy attorney at
King and King, you won't have to bring much. However, as you and your attorney
continue to work together, you'll need to provide some documentation about your
finances in order to complete the necessary paperwork when filing bankruptcy.
Along with your petition, your bankruptcy filing will
include several documents that list your assets, income and debts.
The documents listed below provide an overview of the type
of information your attorney will need. However, each case is unique. Your
lawyer will let you know what specific documents he or she would like you to
bring.
The following documents will be necessary:
Copy of your driver’s license or state-issued ID
card
Copy of your last 2 months of paystubs
Previous year’s tax returns (if already filed)
All of your creditor information (or King &
King can pull a credit report for you)
This is all you need to get your bankruptcy started. Call
King and King bankruptcy attorneys today for a free consultation. 404-524-6400
King and King Bankruptcy Attorneys, Atlanta Georgia
What Are the Different Types of
Bankruptcy I can File In Georgia?
Bankruptcy in
the United States is federal: all bankruptcy cases are handled through the
federal court system. Bankruptcy
currently consists of 9 chapters, which are assigned numbers between 1 and 15
for administrative purposes. The vast majority of bankruptcies in the United
States are filed under three chapters: Chapter 7, Chapter 11, and Chapter 13.
Chapter 7
A Chapter 7 bankruptcy is available to both individuals and businesses in Georgia. A Chapter 7 bankruptcy is a liquidation
process.
- When an
individual files under Chapter 7 bankruptcy in Georgia, the bankruptcy trustee oversees
the Chapter 7 process. The bankruptcy process is there to help, so exemptions
allow the individual to keep thinks you need to lead a normal life: clothing,
household goods and furniture, motor vehicles, and retirement funds are all
examples of categories of assets that can be declared exempt. In many cases,
debtors with homes are able to keep their homes. In many cases the debtor does
not have any non-exempt property at all, so the creditors receive nothing.
- When a
business files under Chapter 7 bankruptcy in Georgia, the business is literally
liquidated: it goes out of business permanently. The trustee sells off all of
the filer’s assets, if any, and the proceeds go to pay the creditors. At the
conclusion of the bankruptcy process, the business no longer exists as a legal
entity.
Chapter 11
A Chapter 11
bankruptcy in Georgia involves reorganization. Chapter 11 is primarily used by
businesses, although some high-income or high-asset individuals may be required
to file under Chapter 11 in rare cases. Chapter 11 allows businesses to
continue operating during and after the bankruptcy process, although not all Chapter
11 filers choose to remain in business. A Chapter 11 filer is allowed to
develop its own plan for reorganization and partial or full repayment of
creditors, subject to the approval of the trustee.
Chapter 13
A Chapter 13bankruptcy in Georgia is available only to individuals. Chapter 13 involves
reorganization, rather than asset liquidation. The debtor proposes a plan to
fully or partially repay his or her creditors over time, subject to the
approval of the bankruptcy trustee. Chapter 13 bankruptcies last for either 3
or 5 years, depending on the financial status of the filer. As with the other forms
of bankruptcy, individual Chapter 13 filers are entitled to claim exemptions.
Other Bankruptcy Chapters
The other
forms of bankruptcy in Georgia are rare. Chapter 9 governs debt restructuring
by municipalities. Chapter 12 is a reorganization chapter that is available
only to family farms and commercial fishermen. Chapter 15 was added to the
bankruptcy code in 2005 and addresses international bankruptcies.
If you are
considering bankruptcy in Georgia, call King and King attorneys in Atlanta for
a free consultation. 404-524-6400
How Hard Is Filing
Bankruptcy Without An Attorney?
You have two options when filing for bankruptcy: hire an
attorney or do it yourself (also known as filing pro se).
As a pro se
bankruptcy filer, you have all the same rights that you would have had you had
filed with an attorney. However, when
you represent yourself, you are expected to know and understand how the law is
practiced in the Bankruptcy Courts. Bankruptcy
Judges and trustees deal with heavy case loads and can have very little
patience for those pro se filers who
are not prepared or who don’t understand how the process of bankruptcy works.
Be sure you are familiar with the United States Bankruptcy Code, the Federal
Rules of Bankruptcy Procedure and the Local Rules of your jurisdiction before
you file a pro se bankruptcy.
What about Online
Bankruptcy Kits and non-attorney “Petition Preparers?”
There are many websites and companies that offer “bankruptcy
kits” to help you file without an attorney. Also, some non-attorney “petition preparers”
may offer their services in preparing and filing your bankruptcy petition, but
they do not actually represent you or your interests in Court. These preparers are almost never attorneys
and do not help you once your case is filed. There is also little supervision
over these companies, unlike the strict court rules that govern bankruptcy
attorneys to ensure your best interests are being represented at all times.
The truth is, bankruptcy is much more complex than just
filling out forms. People who file their cases using bankruptcy kits or
“petition preparers” often encounter problems with their bankruptcy and can be
forced to hire a bankruptcy attorney to help correct the mistakes that were
made. This can be a very expensive, time-consuming and painstaking route to
take.
A personal individual evaluation by a lawyer is the only way
to get a true understanding of what bankruptcy law can do for you. Filing for bankruptcy without the help of a
lawyer can be a difficult and time-consuming experience. We recommended that if
you are considering filing bankruptcy that you consult with a competent
attorney prior to filing your case. Call
King and King at 404-524-6400 for a free consultation to identify any potential
issues specific to your case.
When you
file for bankruptcy in Atlanta, you are assigned a trustee. This trustee is automatically
assigned to you based on where you live. Basically, the trustee controls the
process of the bankruptcy from start to finish. They look for assets to help
repay creditors and make decisions in your case. You should know your rights
and how this relationship works in regards to your bankruptcy plan. Watch the video now to learn more.
What Does a
Chapter 7 or chapter 13 Bankruptcy Trustee Do?
The
bankruptcy trustee is a private business person who may or may not be an
attorney. He or she is charged with upholding the Bankruptcy Code and
collecting as much money for the estate as possible. He or she works in the
interest of creditors. According to the federal guidelines, the bankruptcy
trustee gets a percentage of whatever is collected on behalf of creditors.
Therefore, some financial incentive for the trustee involves ensuring that you
are disclosing everything properly.
How Does the
Trustee Meeting Work?
The purpose
of this meeting is to verify the information in the bankruptcy petition, you
are expected to bring all of your documentation, this meeting is generally a
short one.
The trustee
meeting commonly raises questions, contact us for a free consultation.
For more
information about bankruptcy law and our firm, visit us at http://www.kingandkingattorneys.com,
where you can view our information about chapter 7, and chapter 13 bankruptcy.
If you have legal questions, call us at (404) 524-6400 for a free consultation.
