Will I Need to Make Payments in a Chapter 13 Bankruptcy?

If You File Chapter 13 Bankruptcy in Georgia Will You Need To Make Payments?

Establishing a payment plan is the main difference between filing chapter 13 bankruptcy and filing chapter 7 bankruptcy. Your payment plan must be submitted either with the initial bankruptcy filing or within 15 days later.

Your payment plan must meet court approval, and it must include fixed-amount payments to the plan trustee. These payments must be set for a regular schedule.

Your payment plan will treat different creditors in different ways. In Chapter 13 bankruptcy, there are 3 primary types of creditors.

Priority. These are the creditors whose claims generally must be paid in full, or they may agree to a lower amount (such as recent tax debt and child support payments).

Secured. These are creditors who have secured the right to take certain property from you if you do not pay. If you want to keep your property, you must pay these creditors (such as mortgage arrears or car payments).

Unsecured.  One common example of a unsecured lender is a credit card company. Under Chapter 13, many people qualify not to have to pay these creditors at all.

When the plan is approved by the court, its terms are binding to you and your creditors alike. You will need  to make the regular payments to the trustee either directly or through payroll deductions. Payroll deductions can be a good idea due to the likelihood that the payments will be made on time and in sufficient amounts.

Once your plan is approved, make your scheduled payments. If you think you are going to miss a payment, be sure to inform your attorney. Failure to do so may lead to dismissal of the bankruptcy protection. Bankruptcy on your own can be difficult; we can help.

Call King and King bankruptcy attorneys for a free consultation today 404-524-6400 or visit us at kingandkingattorneys.com

Filing Chapter 13 Bankruptcy in Georgia

Filing Chapter 13 Bankruptcy in Georgia

Chapter 13 Bankruptcy

Chapter 13, also known as "Reorganization Bankruptcy," gives people the opportunity to repay debts, usually without the liquidation of assets.  In many cases, this helps homeowners avoid foreclosure and keep their homes as long as they can continue to make payments.  It can also be helpful in preventing repossessions, wage garnishments, debt lawsuits, and can also help pay off or reduce credit card debt.

Chapter 13 Bankruptcy Can Help You To Financial Freedom

Chapter 13 bankruptcy is designed to help people who have financial troubles often spurred by the loss of a job, unexpected health problems, divorce, or other unplanned events. Whatever may be causing your financial setback, it can often be remedied with a little time and some breathing room. Chapter 13 provides that opportunity to help you get back on your feet.

How Chapter 13 Bankruptcy in Georgia Works

A multitude of factors, such as your income, assets, and the specific nature of your debts all contribute to the amount of your plan repayment. The repayment amount is also based upon the median income standard for the area of Georgia in which you live. The time frame for Chapter 13 is usually three to five years, depending on your situation, and it can be used to pay off and eliminate both secured and unsecured debt. We are experienced in all areas of Georgia bankruptcy law and can help you through the difficult process.

If you're facing financial difficulties and think bankruptcy may be your best option, contact the Atlanta, Georgia bankruptcy lawyers of King and King for your free bankruptcy consultation today, 404-524-6400.

Chapter 7 in Atlanta Georgia - "Fresh Start" Bankruptcy

Chapter 7 in Georgia - "Fresh Start" Bankruptcy

Chapter 7 bankruptcy is also known as a "Fresh Start" bankruptcy.  Chapter 7 bankruptcy allows you to eliminate most or all of your debt, such as personal loans, medical bills, and credit cards, while being allowed to keep most if not all of your property.

Once you decide to file Chapter 7 bankruptcy, King & King will begin the process immediately to stop creditor harassment and threats from lenders.  If your wages are being garnished, filing Chapter 7 bankruptcy will stop the garnishment immediately.

In most cases in the state of Georgia, you will be able to keep your home and your car.  Bankruptcy is not intended to hurt, it’s intended to help.

Chapter 7 does not eliminate:

Student loans, except extreme hardship cases

Recent tax debt (although stale tax debt is usually dischargeable)

Debts for alimony, maintenance or support

Debts for fines, penalties or criminal restitution

Debts for personal injuries caused by driving intoxicated

Chapter 7 is the most commonly filed bankruptcy and can allow for a new start. More and more Americans find themselves struggling with debt they cannot control. Chapter 7 bankruptcy allows for their debt to be discharged and lets them get in control of their financial situation.

To discuss your bankruptcy options, including Chapter 7 bankruptcy, with a knowledgeable King & King attorney in a free initial consultation, contact us today. Timing is always important in bankruptcy-related matters.  The sooner you contact us, the sooner we can begin helping you get your life back on track. Call today 404-524-6400.

If I File Bankruptcy in Georgia Can I Keep My Property?

Can I Keep My Property if I File Bankruptcy?

In almost all of our cases, the answer is "yes."

Bankruptcy exemption laws in Georgia allow you to keep your property.  The Chapter 7 trustee can collect all “non-exempt” property, liquidate it, and distribute it to creditors.  But the Debtor gets to protect their property with exemptions.  Most Debtors are able to keep all their property when the exemptions are fully utilized. There are exemptions for all kinds or real and personal property such as homes, cars, clothing, household goods, pensions, 401(k) plans, IRAs, life insurance proceeds, etc.

The exemptions must be applied properly or the Trustee can seize your property without your consent to sell to your unsecured creditors.  It is very important to have an excellent grasp of the exemption rules in filing your bankruptcy or you risk losing your property.  King & King’s lawyers understand the Georgia and federal rules regarding bankruptcy and can help you protect what is yours, enabling you to get the “fresh start” the bankruptcy is really about.

The best way to determine your exemptions is to contact a qualified bankruptcy attorney.  Call King and King Attorneys in Atlanta, Georgia for help today. 404-524-6400

When Filing Bankruptcy in Georgia Can I Pay Certain Creditors First?

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.

What documents will I need to file Bankruptcy in Georgia?

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

What Are the Different Types of Bankruptcy I Can File In Georgia?

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

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