Filing bankruptcy in georgia
Filing bankruptcy in Georgia is just like filing bankruptcy in any other state. However, decisions like bankruptcy should not be taken in haste and any kind of credit situation. You should first assess yourself and should consider filing bankruptcy only when you are facing the following issues:
When you are paying only minimum amounts on your bills
You can create a budget that can get you out of debt within five years
You realize that your mortgage or loans are being foreclosed
You are facing a situation like losing your job or a major client, a divorce or a costly illness
Bankruptcy does not mean that you would be exempted from your responsibilities. You are still required to make payments towards the alimony, child support, most recent back taxes, most student loans, recent large purchases of more than $550 for luxury goods bought, within 90 days of filing, fines or penalties of government agencies, fraudulent debts, cash advances of $825 within 70 days of filing.
Chapters under which you can file bankruptcy in Georgia
In Georgia consumer bankruptcy can be filed under two basic Chapters i.e. chapter 7 and 13. As of 2005 there have been certain changes made in the bankruptcy laws and in these are applicable in Georgia also.
Chapter 7 Bankruptcy
This is the simplest and the quickest form of bankruptcy. In this type of bankruptcy the trustee would liquefy your assets and pay off the creditors. According to the new bankruptcy reforms you are required to undergo a means test, which would determine whether you are a candidate for Chapter 7 bankruptcy or not.
If it is found that your income is below the median income in Georgia then you are eligible for this bankruptcy. There are several factors that are considered while calculating the median income. In Georgia the median income for a single wage earner is $37,588 ; for a family of two is $50,376; for three, $55,293; and for four, $66,508.
Besides this you are also required to attend credit counseling before you can file bankruptcy. Also you are required to file any unpaid tax returns within weeks of filing a Chapter 7 bankruptcy. The fee for filing chapter 7 bankruptcies is $299.
When you file chapter 7 bankruptcies your creditors are prevented making any sort of collections on the debt. You are required to attend a creditor meeting within 20-40 days of filing the bankruptcy petition. Here the trustee would ask you about your debts and assets. You are required to be attentive in this meeting and provide all the details to the trustees. The creditors have a time period of 60 days after this meeting to persuade the bankruptcy court that you should no be allowed to file bankruptcy.
Chapter 13 Bankruptcy
This bankruptcy can be filed by, individuals as well as sole proprietors. By filing under this chapter you can pay off your debts all or partially over a period of 3-5 years. For filing bankruptcy under chapter 13 you are required to have a steady source of income with some disposable income (income that is left after paying the bare necessities of life such as shelter, food and utilities). You are also required to have no more than $1,010,650 in secured debt and $336,900 in unsecured debt.
Filing bankruptcy under Chapter 13 requires you to be accompanied by a proposed payment plan. This plan must provide you for the payment of all "priority claims," such as taxes, in full. The trustee appointed by the court is required to review the plan for flexibility and accuracy. This plan is distributed among the creditors and those who have the rights can object to it.
If the plan is approved then you can keep your assets during the payment plan. You are required to make monthly installments to the bankruptcy trustee and then he or she would distribute the amount among the creditors.
Arranging your paperwork
To begin the process of bankruptcy you are required to arrange your documents in a proper manner. You should mention your current income sources; major financial transactions for the last two years ; monthly living expenses; debts (secured and unsecured); and property (all assets and possessions). Besides this you are also required to collect your tax returns for the past 2 years, any deeds to the real estate that you own, car titles and all the documents for the loans that you are supposed to pay.
Filing bankruptcy with the help of attorneys
When you consider filing bankruptcy in Georgia it is important that you take the help of a bankruptcy attorney so that he or she can guide you on the process and the facts about bankruptcy. Some of the bankruptcy attorneys functioning in Georgia are mentioned below.
Jonathan Ginsberg:
His law firm specializes in handling bankruptcy issues and has helped a number of people file bankruptcy successfully. You can contact them at Telephone: 770-393-4985; Email: jonathan@glolaw.com
Albert Law Group:
They are a full-service bankruptcy law firm and help clients in filing bankruptcy. They help businesses as well as individuals and have a lot of experience in this field of law. You can contact them at 2470 Windy Hill Rd., Suite 212, Marietta, GA 30067; Phone: (770) 272-0400; Fax: (770) 272-0401; e-mail: albertlawgroup@yahoo.com
Fuller & McKay, P.C.:
They are a full service law firm serving the communities of Northwest Georgia and beyond. They have helped a number of people in successfully filing bankruptcy. You can contact them at P.O. Box 6063; Rome, GA 30162-6063; P: (800) 842-6441; F: (706) 295-0238; e-mail: office@fullermckay.com
Morris, Manning & Martin, LLP:
They are a full service law firm and represent clients all over U.S. They have represented a number of people in filing bankruptcy. You can contact them at 1600 Atlanta Financial Center; 3343 Peachtree Road, NE; Atlanta, Georgia 30326; Phone: 404.233.7000; Fax: 404.365.9532.
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