Are you or a loved one constantly being called by creditors? Read these chapter 7 bankruptcy tips you should know, then give us a call today.
1) Assets Protected Under Chapter 7 Bankruptcy
One of the primary questions that our clients ask us is what assets are protected in a Chapter 7 bankruptcy in Georgia. There’s a term called exempt property. It’s a term that attorneys use that most people would never use in their ordinary language. Exempt assets are basically assets that the state of Georgia has determined that, no matter what happens, you can protect these assets from your creditors.
Georgia has established a particular bankruptcy statute that lines out those assets. For instance, you can protect from $1,500 of equity in your house. You can protect up to $5,000 of equity in an automobile, $2,000 equity if you cash your regular life insurance policy, $1,200 in tools of the trade, $1,200 in other assets that you might have. There’s a smattering of other type of protections.
One of the big protections is retirement plans. You can always protect unlimited amounts of monies in retirement plans that are tax-exempt, for instance, 401(k), your employee provided retirement plan. IRAs and other types of retirement plans are always fully protected.
2) Cost of Chapter 7 Bankruptcy
As with all legal proceedings, one of the questions we hear often is, how much does it cost? A Chapter 7 bankruptcy in Georgia typically costs $1,500 plus the filing fee of $335. Sometimes the cost may be higher depending on the complexity of the case or sometimes it could be lower depending if it’s a very straightforward and simple case.
3) How long a chapter 7 bankruptcy takes to complete
One of the questions that a lot of clients ask us is how long a Chapter 7 bankruptcy will last in Georgia. A Chapter 7 bankruptcy is a relatively quick bankruptcy. Once you come in, put in your paperwork, and then file, you have a meeting of creditors within 30 days after the file. If everything goes like it is planned, there are no objections, and you do not have any discharge ability issues, which 99% of the clients, of course, would not have, you can be out of bankruptcy within three to four months.
4) Filing chapter 7 bankruptcy
One of the initial questions that we always receive regarding bankruptcy is how to file a Chapter 7 bankruptcy in Georgia. A Chapter 7 bankruptcy is similar to a Chapter 13 bankruptcy. They’re basically the forms that your attorney would have. You can come into the office and bring in all your information concerning debts, assets, wages, bank statements, income taxes. You sit down with an attorney, and you work through that, and put those into a schedule.
Those schedules are then filed with the bankruptcy court. Once those schedules are accepted by the bankruptcy court, then you have a meeting of creditors held within 30 days after the filing. After that, you will receive your discharge within three to four months afterwards.
5) Choosing an Attorney for a Chapter 7 Bankruptcy
One of the questions that we are constantly asked is, how do you choose the right attorney? I would suggest that you research and check on the credentials of the attorney. You want to make sure in Georgia that, if you’re choosing an attorney to file a Chapter 7 bankruptcy, that attorney has experience in Chapter 7 bankruptcies, Chapter 13 bankruptcies, and what we call consumer bankruptcies. You want to make sure that they know all the ins and out, that they know the trustee, that they know the judges, that they know the rules so that you’re not caught unprepared.
6) Benefits of Chapter 7 Bankruptcy
One of the questions that we always want to know is how a bankruptcy in Georgia is going to help our clients. In a Chapter 7 situation, a Chapter 7 liquidates or eliminates all unsecured debt such as credit cards, such as personal bills, such as medical bills, delinquent rent, things like that. Now, if you’re going to keep your car, or keep your house, or keep your apartment, of course, you have to keep the current payments made. It doesn’t discharge any debts that are current after the filing of a bankruptcy.
Say, for instance, you were in an automobile wreck and you have a lot of medical bills. Those medical bills are now in collection. A Chapter 7 would discharge those medical bills many times.
Are you or a loved one in the process of filing for bankruptcy in Statesboro, Springfield, or Swainsboro and have questions about these 6 Chapter 7 bankruptcy tips you should know in Georgia? Contact the experienced Georgia bankruptcy attorneys at Hall & Navarro today for a consultation and case evaluation. We can help get your life back on track.