Facing financial challenges and considering bankruptcy can be overwhelming. Understanding the complexities of the bankruptcy process is crucial to making informed decisions about your financial future. In this guide, we’ll provide you with the essential bankruptcy information you need Rome GA, to navigate this challenging terrain.

At the Law Office of Jeffrey B. Kelly, we recognize the stress that financial difficulties can bring. Our dedicated team is here to help you through the intricacies of bankruptcy, providing legal guidance and personalized solutions tailored to your unique situation. With years of experience and a commitment to client success, we aim to empower you with the knowledge needed to make confident decisions about your financial well-being.

Are you struggling with debt and seeking reliable guidance on bankruptcy? The Law Office of Jeffrey B. Kelly is here for you. Our team of experienced Rome bankruptcy lawyers are here to help individuals like you understand their options and navigate the bankruptcy process with confidence.

Don’t let financial difficulties control your future. Contact the Law Office of Jeffrey B. Kelly today for a free consultation. 

Quick Summary:

Here’s a brief overview of everything you need to know:

• Understand the nuances of Chapter 7 and Chapter 13. While Chapter 7 is quick and cost-effective, Chapter 13 involves repaying debts over several years, making it suitable for specific financial situations.
• Learn how filing for bankruptcy in Georgia provides relief from overwhelming debt. Recognize the importance of the state’s rules in determining what belongings you can keep.
• Discover how bankruptcy can eliminate various debts, from credit cards to medical bills. Assess whether bankruptcy will discharge enough debts to make it a worthwhile option.
• Be prepared for the time commitment—Chapter 7 takes at least 6 months to a year, and Chapter 13 lasts at least 5 years. Understand eligibility criteria and the impact on your credit report.
• Explore the exemptions available in Georgia, safeguarding home and vehicle equity, personal possessions, retirement funds, and more.
• Understand the costs involved in filing for bankruptcy in Georgia, including court fees and additional expenses. Learn about the post-filing process, including meetings and required courses.

If you’re struggling with debt, our experienced professionals at the Law Office of Jeffrey B. Kelly are here to guide you. Schedule a free consultation to explore personalized legal solutions for a fresh financial start.

What is Bankruptcy? 

Bankruptcy is a legal process designed to provide individuals and businesses relief from overwhelming debt and financial struggles. It is a court-supervised procedure that aims to help debtors eliminate or repay their debts under the protection of the bankruptcy court.

What’s the Right Bankruptcy Chapter for Me in Georgia? 

Bankruptcy comes in different types, and they each have their own rules. The two main ones for people are called Chapter 7 and Chapter 13.

• Chapter 7 is a popular choice for bankruptcy because it’s fast and inexpensive. It’s suitable for those with essential belongings but may not be ideal if you have valuable assets. In Chapter 7, unnecessary items can be sold to pay creditors. However, there’s a risk of losing significant assets like a house or car, especially if you’re behind on payments, as there’s no option for a payment plan to catch up.
• Chapter 13 is about repaying what you owe over three to five years. You get to keep everything you own, and the payment plan helps in tough financial situations. It’s handy for catching up on late payments to save your home or car. You can also use it to manage debts you can’t completely get rid of in bankruptcy.
  • But it can be costly, and not everyone can afford the monthly payments. Businesses can’t use Chapter 13 either. If you’re a business owner, it’s important to understand small business bankruptcies before deciding which option is right for you.

Bankruptcy is a legal tool that can offer a fresh start for those overwhelmed by debt, providing a structured way to address financial challenges. However, it’s essential to understand the specific implications of bankruptcy, as it can impact credit scores and financial options in the future. Seeking legal advice is crucial to navigating the process successfully.

Georgia’s Bankruptcy Process: How Does It Work?

Filing for bankruptcy in Georgia is similar to other states. It follows federal law, not state law, and helps break the agreements between you and your creditors, giving you a new beginning. However, Georgia’s rules are important because they decide what belongings you can keep. We’ll also share more details about filing after covering some basics.

Can Declaring Bankruptcy in Georgia Wipe Away My Debts?

Bankruptcy can eliminate various debts, including:

• credit cards, 
• overdue utilities, 
• medical bills, and
• personal loans. 

You may also be able to remove a mortgage or car payment if you’re willing to give up the associated property. However, not all debts can be discharged, such as domestic support arrearages and recent tax debt. Student loans are generally challenging to erase, but recent changes in 2023 aim to simplify the process with a new student loan bankruptcy form. It’s important to assess whether bankruptcy will eliminate enough debts to make it a worthwhile option.

How Much Time Does Bankruptcy in Georgia Usually Take?

If you’re thinking about filing for bankruptcy in Georgia, be ready for it to take at least 6 months to a year for Chapter 7 or at least 5 years for Chapter 13. The duration might change based on your financial situation or if there are any issues with the payment plan or challenges from creditors.

In Chapter 7, the process wraps up when the court approves payments by the bankruptcy trustee. Chapter 13 isn’t finished until all necessary payments are made, and the court recognizes the completion of your payment plan.

Remember, filing for bankruptcy will be on your credit report for 7 to 10 years. Chapter 7 stays for 10 years, while Chapter 13 usually disappears from the credit report in about 7 years.

Am I Eligible for Bankruptcy in Georgia? 

To qualify for bankruptcy, there are several requirements you need to meet. If you’ve filed before, you must check if enough time has passed to file again, which varies based on the previously filed chapter and the one you plan to file.

For Chapter 7, you qualify if your family’s income is below the median for your state. Use the Quick Median Income Test online to check. If you make too much, you might still qualify after the “means test.” If you can’t afford a Chapter 13 plan, you qualify for Chapter 7.

Chapter 13 can be costly. To qualify, you pay the larger of 

• your priority debt, 
• nonexempt property value, or 
• disposable income. 

What Are the Bankruptcy Exemptions in Georgia?

People filing for bankruptcy can safeguard certain home and vehicle value, personal belongings, retirement funds, and other assets. Here’s a list of common Georgia bankruptcy exemptions that filers often use.

• Homestead Exemption – In Georgia, the homestead exemption allows you to keep the house you live in, as long as there isn’t too much value in it. This exemption helps protect your property from the bankruptcy trustee and creditors.
  • You can exempt up to $21,500 of your home equity when filing for bankruptcy in Georgia. If your spouse co-owns the home and you both file for bankruptcy together, this amount doubles to $43,000.
• Wage Exemption – You can keep 75% of what you earn each week after necessary expenses, or 40 times the higher of the state or federal minimum wage. Bankruptcy judges can decide to let people with low incomes keep more of their wages.
• Motor Vehicle Exemption – If you own a car, you can protect $5,000 of its worth from being included in the bankruptcy.
• Jewelry – You can keep jewelry worth up to $500.
• Tools of the Trade Exemption – You can keep tools, books, and other essential work items worth up to $1,500.
• Personal Property Exemption – According to Georgia law, you can protect certain household items. You can safeguard a total of $5,000 for all items, but no single item can be worth more than $300. These items include furniture, household goods, clothes, appliances, books, musical instruments, crops, and animals.
• Support Exemption – In Georgia, money for alimony and child support needed to care for your kids is protected and cannot be taken in bankruptcy.
• Public Benefits Exemption – According to Georgia bankruptcy rules, specific public benefits are safe from bankruptcy actions. These include unemployment pay, social security benefits, and public assistance. 
  • Additionally, money from worker’s compensation, veteran’s benefits, old-age assistance, aid to blind or disabled persons, and crime victim’s compensation is also protected.
• Pension and Retirement Account Exemption – Georgia law keeps most pension and retirement plans safe. This includes the following: 
  • Tax-exempt retirement accounts such as 401(k)s, IRAs, and certain benefit plans. 
  • It also covers public office or employee plans. 
  • Additionally, reasonable and necessary payments due to illness, disability, death, age, or length of service under a pension or annuity plan are protected.
• Other Exemptions – Under Georgia law, additional funds and benefits can be protected. This includes money from health or medical savings accounts, medically prescribed health aids, wrongful death benefits needed for your support, and more. A Georgia bankruptcy attorney can help you figure out which other exemptions might be relevant to your specific situation.
• Wildcard Exemption – In Georgia, you can keep personal belongings you own worth up to $1,200 as per the law. If you haven’t used all the homestead exemptions, you can use up to $10,000 of the remaining amount to safeguard additional personal property using the wildcard exemption. This is especially helpful if your exemptions don’t cover all your belongings.

What Occurs After Submitting A Bankruptcy Filing in Georgia? 

Following your bankruptcy filing in Georgia, your creditors will generally cease contacting you within a few days due to the court issuing an “automatic stay” notice. This legal order prevents most creditors from requesting payment. The subsequent actions include:

• Submitting financial documents to validate the details in your bankruptcy paperwork.
• Attending the 341 meeting of creditors, a mandatory requirement for all filers.
• Completing a debtor education course and providing the completion certificate.

These steps are essential before obtaining a Chapter 7 bankruptcy discharge. For Chapter 13 filings, there’s an additional requirement to attend a repayment plan confirmation hearing and adhere to the three- to five-year payment plan.

Ready to Navigate Bankruptcy? Contact Our Rome Bankruptcy Attorney Now!

Are you struggling with debt and seeking reliable guidance on bankruptcy? The Law Office of Jeffrey B. Kelly is here for you. Our trusted team is well-equipped to help individuals like you understand their options and navigate the bankruptcy information you need in Rome, Georgia, as well as its process, with confidence.

At the Law Office of Jeffrey B. Kelly, we understand the stress and uncertainty that financial struggles can bring. Our knowledgeable legal team is dedicated to transforming financial challenges into success stories. Say goodbye to financial stress and hello to a fresh start! Don’t let financial challenges dictate your future. Take Action Now! Schedule your free consultation with the Law Office of Jeffrey B. Kelly today!

Aside from bankruptcy, we provide legal services on personal injury in Dalton, Kennesaw, Douglasville, Cartersville, Dallas, and Marietta. 

When someone goes to a bankruptcy law firm and asks for advice, it is often quite surprising to hear them say, “I’m not sure which Chapter I qualify for?” or “Will my debts be wiped out?” or “Do I have to disclose assets?”. In response to these often asked questions, this article will discuss the types of bankruptcies.

Bankruptcy starts with the filing of a petition in the bankruptcy court. This post will be focusing on two of the most common types of bankruptcies – Chapter 7 and Chapter 13. However, if I file for bankruptcy, what will happen? Let’s start this post by answering that question.

What Happens If I file?

To file for bankruptcy, you must go to federal court. Once your bankruptcy case is filed, your creditors must quit chasing your debts. The court will then ask for information such as:

• Total debt owed
• A list of all your debtors
• A complete income statement
• A breakdown of your outgoing expenses
• A breakdown of your outgoing expenses

In bankruptcy court, you can represent yourself. You can also engage a bankruptcy lawyer to represent you and guide you through the lengthy process of declaring bankruptcy. Debt discharge or reorganization in bankruptcy court might take a long time. If you hire a lawyer, they can explain the timeframe in your bankruptcy case.

Chapter 7 and Chapter 13 Bankruptcies

Chapters 7 and 13 are bankruptcy chapters within the United States Bankruptcy Code. They are intended to help people who have become unable to pay their debts. Some people believe that Chapter 7 and 13 bankruptcy cases are the same thing. They are not the same. They have different rules and procedures.

The primary distinction between Chapters 7 and 13 bankruptcy is that you lose your property under a Chapter 7 bankruptcy, and it becomes property of the bankruptcy court. Under a Chapter 13 bankruptcy, you do not lose your property, but that property must be paid to your creditors in installments over three to five years.

What Type of Bankruptcy Is Chapter 7?

Bankruptcy Chapter 7 can sometimes refer to as liquidation bankruptcy because all of your assets are liquidated or sold to pay off as much of your debt as possible.

In some conditions, it is possible for a person filing for Chapter 7 bankruptcy to keep some types of property by paying the value of that asset into the Chapter 7 estate before any distribution takes place.

The following consist of the types of debts that are generally discharged in a Chapter 7 bankruptcy:

• Medical bills
• Credit card statements
• Bills for utilities
• Loans to individuals
• Certain governmental legislation

How Do I Meet the Criteria for Chapter 7?

You may apply for Chapter 7 bankruptcy without an attorney, but you should strongly consider hiring one. There is a great deal at risk, and the process may get rather complicated. Chapter 7 typically takes four to six months to complete.

The following are the usual criteria for Chapter 7 bankruptcy eligibility:

• You must pass a “means test,” in which your income, assets, and spending are examined.
• Any Chapter 7 or Chapter 13 bankruptcy petition filed in the last 180 days must have been dismissed.
• In the past eight years or six years, you have not filed a Chapter 7 or Chapter 13.

What Are the Benefits of Chapter 7 Bankruptcy?

1. Major Financial Help

The main advantage of Chapter 7 bankruptcy is the elimination of all unsecured obligations, such as utility, medical, and credit card payments, and personal loans. The best thing is that debt relief is unlimited, meaning bankruptcy can dismiss hundreds of thousands of dollars due.

2. Auto-stay

A lender can’t seize or foreclose on your property during a Chapter 7 bankruptcy. This temporary option allows you to catch up on payments or find an alternative.

3. Debt Collector Protection

The automatic stay protects you against creditors who may have previously harassed you for 

debt collection. If you entirely discharge a debt, you have permanent protection. On the contrary, you may obtain a partial discharge and a time extension.

4. Garnishment of Wages

If you file for bankruptcy, no creditor may garnish your wages. This money can be used to cover monthly expenses.

5. Exemptions

Chapter 7 permits you to keep assets like a home, a car, clothing, furniture, etc. To live comfortably, you can maintain other assets worth less than a specific amount (typically $10,000 or less).

6. Fresh Start in Months

It takes 3-6 months for Chapter 7 to work and you will get your fresh start. As opposed to a Chapter 13, where you need to finish a 5-year debt repayment plan.

What are the Disadvantages of Chapter 7 Bankruptcy?

1. Chapter 7 is not available to individuals or businesses who earn more than a certain amount. 

Your bankruptcy will be amended to Chapter 13, which includes either partial or complete debt relief.

2. Bad Credit

Credit scores will drop regardless of bankruptcy type and will be on record for 7-10 years. You may still get fresh credit or loans if you qualify. 

3. Asset Disposal

Non-exempt assets, such as expensive autos, real estate, and collectibles will be liquidated to satisfy creditors.

4. Harmful Publicity

When you declare bankruptcy, your financial situation is made public. Anyone can look up the bankruptcy, but few do.

5. Debts not dischargeable

Mortgages, student loans, and auto loans are not dischargeable under Chapter 7. Also, bankruptcy does not relieve financial obligations like child support, alimony, and taxes.

What Type of Bankruptcy Is Chapter 13?

Chapter 13 is sometimes called reorganization bankruptcy because, under this type of bankruptcy, you may be able to keep certain assets by agreeing to make regular payments on them for three to five years. If you cannot make these payments, then the property may be sold or liquidated to satisfy any remaining liabilities. 

You’ll need the help of a competent bankruptcy attorney when preparing and submitting this type of petition with the court. An attorney can help determine whether Chapter 13 is right for you.

How Do I Meet the Criteria for Chapter 13?

To be eligible for Chapter 13 relief, a debtor must meet the following criteria:

• The debtor may be an individual or a married couple. Corporations, limited liability companies, partnerships, and business trusts are not eligible for Chapter 13 relief.
• The debtor must have “regular income,” which encompasses job revenue (i.e., working for a pay check), business income, renting income, and government help or benefits.
• Monthly net income must exceed monthly cost of living, leaving money each month to pay the Chapter 13 Trustee.
• Secured debt, which includes mortgages, tax liens, and auto loans, cannot exceed $1,149,525.00, while unsecured debt, including credit cards and medical bills, cannot exceed $383,175.00. These figures are revised every three years.

What are the Benefits of Chapter 13 Bankruptcy?

• Maintain ownership of all property – As long as you comply with the terms of your repayment plan.
• While debt is not eliminated, it is greatly reduced.
• Complete protection from creditors – This includes wage garnishment and debt collection.
• Classification of debts – Define the difference between debts incurred with a third party and those incurred with oneself.
• Dischargeable debts – Debt incurred due to fraud or purchases of luxury items purchased using a credit card.
• Protection for cosigners – If the payment plan is for the full amount of the obligation, your cosigners are protected from creditors.
• Unfathomable Future Chapter 13 petitions – At any point, you may file a later Chapter 13 petition.
• The lender protects the borrower against foreclosure.
• Increased time to repay non-dischargeable debts.

What are the Disadvantages of Chapter 13 Bankruptcy?

• Consumption should be kept to a minimum until your payment plan is complete.
• Expenses for legal counsel increased due to the more complicated bankruptcy process.
• Between three and five years is the requirement to repay debt.
• Brokers of stocks and commodities are prohibited from filing for this type of bankruptcy.

Key Takeaways

Although Chapter 7 bankruptcy is usually what people want to file because it’s the fastest, filing it still has consequences. You will be prevented from filing again in the next six years, and you cannot get new credit without a cosigner or an agreement with your creditors to repay them. 

It is important to consult an experienced bankruptcy lawyer in Georgia.  At the Law Office of Jeffrey B. Kelly (Kelly Can Help), you will be guided on the best way to proceed with your bankruptcy so you can get on your journey to a financial fresh start. Take advantage of our free case evaluation now.

August 3, 2020 / Jeffrey Kelly

One of the few good things to come as a result of the Covid-19 pandemic is that you can now file bankruptcy without ever leaving your house.  You can even “attend” your court hearing via telephone now from the comfort and safety of your home.   

Before Covid-19 hit, you had to physically appear in one of our offices and a bankruptcy attorney had to see you physically sign the documents.  For many people who have to juggle busy work schedules and family schedules, it was difficult at times to physically get into the office.  Traffic delays used to wreak havoc on getting some of our sign appointments completed. 

Now, because of the shelter in place concerns, the Bankruptcy Court allows us to file your case without you ever having to come to one of our offices.  Here is how the process works:   

Step 1:  We conduct your free initial consultation with you by phone.  During this phone conference, we want to review all of your debts, lawsuits, assets, income and expenses with you.  Our goal is to get a feel for your entire situation.  At the end of this free consultation, we will clearly explain to you why Chapter 13 or Chapter 7 bankruptcy is or is not a good option for you.  Unlike many other bankruptcy law firms, you will be able to talk directly to a bankruptcy attorney who will closely analyze the specific facts of your case.  In addition, we will answer all of your questions.   

If you decide to move forward with either Chapter 13 or Chapter 7 bankruptcy, we will need you to give us your social security number and your birthdate so that we can pull a credit report for processing your bankruptcy petition.  If you have received any lawsuits or other bills you would like for us to include in your case, you can take a picture of the documents and email them to us.  if you have access to a scanner, it might be easier for you to send them to us that way.  

Step 2:  The sign appointment.  During this appointment, which will take about two hours on average, we will do a screen share with you so that you can go through each page of the bankruptcy petition to make sure it is absolutely perfect.  We will use a program called Docusign so that you can electronically sign the court required signature pages.  We can file your Chapter 13 or Chapter 7 bankruptcy case shortly after your sign appointment so that your court protection will begin immediately.  We will mail you a hard copy of the bankruptcy petition after your case is filed.  Then, we will need you to sign it with a pen and mail the documents back to us.    

Your Court hearing:  Until October 2020, all bankruptcy court hearings will be conducted virtually over the telephone.  This means you can currently “attend” your court hearing without ever leaving your house.  Normally, you have to appear physically in court for your 341 Meeting of Creditors.  Before Covid-19, you would have to wait in the security line, get scanned by the guards, and then go sit in a room full of people and wait for your name to get called.   

Personally, I am hoping that all of the changes that have been made to our bankruptcy system as a consequence of Covid-19 will become permanent.   

Call us today at 770-881-8449 for your free consultation with a bankruptcy attorney. 

The answer might shock you.  Most people recover well within two years of filing Chapter 7 bankruptcy. 

The damage has already been done

Most potential clients I meet with have either stopped paying on their credit cards many months ago, had cars repossessed, been sued by creditors, had their wages garnished, and/or had their house foreclosed.  Any of these will put a major hit to your credit rating.  For most people considering bankruptcy, the damage to their credit report has already been done.   

Do you ever get a knot in your stomach when you think about your credit score?  Do you ever feel sick when you start thinking about all the debt that is hanging over you?  Chapter 7 might help make that pain go away.  The question is, how do we clean up the past and move forward? 

An effective way to clear the decks is to file bankruptcy.   

Step one is to stop the pressure from creditors.  Chapter 7 bankruptcy stops the collection calls, harassing letters, the lawsuits and the garnishments.   

The second important benefit of bankruptcy is that we can eliminate the underlying debts that are causing the problems.  We can get rid of those nagging past due accounts that have been hanging over your head for years and get you a fresh start.     

This is the point where most bankruptcy attorneys leave it.  Get rid of your debt and move on.  The problem with leaving it there, is what assurance do you have that history will not repeat itself? 

We are different from other law firms

We take it one step further.  My friend Don Golden started a company called Fresh Start for Life to help people rebuild their credit after filing bankruptcy.  Don expresses confidence that most working people can achieve a 720 credit score within 12-24 months of filing Chapter 7 bankruptcy.   

I have a bulk rate deal with Fresh Start for Life so that all my bankruptcy clients get to take this course without having to pay one extra dime.  It is part of the package. 

If you don’t take the right steps to rebuild your credit, you could end up with new high interest loans that could put you right back into another situation where you need bankruptcy again in the future.  Fresh Start for Life will teach you how to avoid the pitfalls. 

When do you start Fresh Start for life?

As soon as your bankruptcy case is discharged, we will enroll you in the course.  

In the course, Fresh Start for Life will teach the fastest way to rebuild your credit after bankruptcy.  

Don promises to teach you how to  

– Make the credit card companies pay you to use their cards 
– Have money left in your pocket every month to buy the things you want 
– Grow your bank account from zero to 60k (or to whatever you need) 
– Find money to pay for emergencies like hot water heaters or car transmissions 
– Get the resources to take the vacations you’ve been dreaming about 

And so much more. 

If you have questions about filing bankruptcy or would just like to move forward, please call me today at 770-881-8449.   

I am shocked that the people who are usually most concerned about how bankruptcy will impact their credit currently have terrible credit scores because of past judgments and delinquent accounts.  Judgement liens can be renewed by your creditors.  Creditors who are willing to garnish your paycheck will also come after your bank account.  If you ignore the problem, it won’t go away by itself.  I am shocked at how many people are willing to let their creditors pulverize them financially for years before finally seeking legal advice. Filing bankruptcy eliminates the underlying problem.  

It surprises me that I routinely see people who allow themselves to be garnished because they think they are protecting their credit rating.  In reality, their credit rating has already been hammered by the lawsuit and other collection actions.  Allowing old debt to hang over you forever is not going to raise your credit anytime soon. 

Filing bankruptcy allows many people to get a new start so that they can begin the process of rebuilding credit.  While it is true that a Chapter 7 will be on your credit report for 10 years, that does not mean you have to wait 10 years to re-establish your credit.  The process of rebuilding begins as soon as your case discharges which is typically 90 days after you file. 

Since you can file Chapter 7 only once every 8 years, a person must be extremely careful about accepting offers of credit after filing bankruptcy.  The world is full of unscrupulous creditors who love to lure people back into debt after coming out of a Chapter 7.       

Can you buy a car after filing bankruptcy?

The answer to this question is yes.  Buying a new car is going to depend on how much money you are putting down on it and your current employment situation.  In my 22 years of practice, I have seen many clients purchase a new car from a dealership within 6 months of filing.

Can you buy a house after Chapter 7 Bankruptcy?

I have seen many clients do it.  In most cases, it will be around two years after filing before you can buy house.  Again, the down payment and employment status will be crucial.  I have heard many mortgage experts say that as a general rule, you don’t ever want to buy a house until you can put down at least 10 percent of the purchase price.

Credit Score vs. Cash

Personally, I think people should be most concerned about establishing a cash emergency fund and not credit. Cash in your bank account is king.  Credit can be a highway to destruction.

In conclusion, saving cash every month and not credit is the real key to your financial success.  If you have any questions about bankruptcy, please call me at 770-881-8449. 

Below is a quick article to help you in deciding whether bankruptcy can help your financial situation, some points to consider, and where to contact an attorney for help.

Chapter 7 vs. Chapter 13

We could spend quite some time going into the differences between Chapter 7 and Chapter 13 bankruptcy, but for the purposes of understanding the advantages of filing, we will just need a quick overview.

Chapter 13 (repayment)

Chapter 13 is designed to help you “catch your breath.” Chapter 13 is the longer of the two filings to complete, but stays on your credit report for a shorter period of time.

This is the most common type of filing for someone who, for example, unexpectedly lost their job for an extended period of time and is now trying to stop a foreclosure.

This would come through entering a mortgage arrearage and distributing past-due payments over a period of three-to-five years.

To figure out that monthly payment amount, I will propose a budget for you and a manageable monthly payment amount. Your payments will be paid to a trustee appointed by the court, and not directly to your creditors. This is so you can avoid making multiple payments to multiple creditors, and instead just make one monthly payment to your trustee.

In almost every Chapter 13 case, interest on credit cards and other unsecured debt is completely frozen.

Chapter 7 (liquidation)

Chapter 7 is designed to help you get a “fresh start” to your debt and finances. This is the most common type of bankruptcy for someone who has an unmanageable amount of medical or credit card debt, as it cleans the slate of these expenses.

Compared to Chapter 13, this type of bankruptcy is shorter to complete but stays on your credit record for longer.
It must also be noted that to qualify for Chapter 7 bankruptcy, you must meet certain income requirements. If your income is higher than allowed, then Chapter 7 may not be an option for you. To know for sure in your situation, you need to get me copies of your paystubs for the last six months so that I can determine where you land on the means test.

Unfortunately, in both cases your credit score will take a hit. While this is unavoidable, it does not outweigh the benefits of filing for bankruptcy.

Bankruptcy Advantages: Forgiven Debt and Buying Time

Federal Bankruptcy Law requires a “means test” to determine whether you qualify for Chapter 7 or Chapter 13 bankruptcy. When we meet with you to review your situation, we will apply these tests to your case to determine your best options.

Chapter 7 and Chapter 13 bankruptcy can have both pros and cons depending on your situation, but generally individuals who file are the ones who desperately need the benefits no matter the cost. Some benefits of bankruptcy include:

• Filing for bankruptcy will trigger an automatic stay, which is a legal term that means your creditors will need to stop collection action immediately. They will not be able to repossess your car, foreclose on your home, call you, send you collection letters or file a lawsuit against you.
• In some cases, bankruptcy might allow you to discharge certain debts altogether.
• In some cases, you can go through the bankruptcy process without losing any of your property, including your car and your home.
• You might be able to begin rebuilding your credit shortly after your bankruptcy case completes.

For struggling individuals, filing bankruptcy can offer necessary relief from impossible payment demands and harassing phone calls. Below are some of the top advantages to filing.

A Final Note on Automatic Stays

The automatic stay is a financial lifeline for many individuals. Essentially, the moment you file for bankruptcy you get protection from your creditors via the automatic stay. This means they cannot collect on their debt, cannot badger you with phone calls, and cannot take your vehicle away from you.

While it is normally active the entire duration of the bankruptcy, this can change under a few circumstances.

This first circumstance is if a creditor wants to pursue you after your case is filed, they can file a Motion for Relief from the Automatic Stay. If this is granted by the court, your stay will no longer be in effect and your creditors can begin collection attempts again.

The second circumstance is when you have filed for bankruptcy more than one time. Refiled bankruptcy cases have different rules that depend on the dismissal dates. If you want to know how your prior bankruptcy cases may affect a new filing, take advantage of a free consultation and get legal advice from an experienced bankruptcy attorney.

Contacting a Bankruptcy Attorney

I have been practicing law since 1998 and have over 22 years of consumer bankruptcy law under my belt.

I understand how important it is for individuals to get the financial help they need in times of trouble and I dedicated my law office to doing just that. With our experienced staff of attorneys, you can call anytime for a free consultation at (770) 637-1756 and start discussing the advantages and disadvantages to filing Chapter 13 and Chapter 7.

What does a botched divorce look like, exactly?

Most commonly, you see the caretaking parent revoking rights to many assets that would otherwise be awarded to them in exchange for keeping their home and children. This is neither fair or necessary in family law, but an unfortunate reality for many individuals who try to file for divorce on their own.

Adding insult to injury, this agreeableness usually results in that same spouse footing the bill for their own legal fees, adding to the burden of their monthly expenses they may or may not be able to afford.

As such, it’s important that you always retain a lawyer in your divorce case.

Setting an Example

So as to get through the following possible situations where a bad divorce may result in unexpected financial consequences later on, we are going to use a hypothetical situation.

Let’s say that you were divorced several years ago and agreed, along with your spouse, that you would keep the home you and your family lived in. This is usually followed by filling out a quitclaim deed (a document used to transfer the ownership of property from one individual to another).

After you and your spouse go separate ways, you might think your ties to one another are severed. Depending on your paper trail, this might not be the case.

When an Ex-Spouse Files for bankruptcy

After your separation, you or your spouse might find yourself in a challenging financial situation. There may be joint debts to contend with, unexpected filing fees, unmanageable living expenses, and a whole host of challenges that come after two individuals go through a financial separation.

Depending on the situation of you or your ex-spouse, it may be a good idea to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy depending on your needs. If you choose to file, this could help with bills by enacting an automatic stay (which prohibits debt collectors from collecting on your debts), restructuring your monthly payments to be manageable (such as in Chapter 13) or even completely absolve suffocating credit card debt (such as in Chapter 7).

However, be cautious. For individuals who filed for divorce themselves, choosing bankruptcy could have severe and unexpected consequences for their previous spouse, especially if their paperwork was not properly completed.

When an Ex Comes Back to Haunt You

This is when problems start to occur– potentially years down the line. These issues, commonly, fall into two categories: unfinished quitclaim deeds and cosigner debt.

Quitclaim Perils

In the above situation, many people are not aware that a step is missing: the quitclaim deed needed to be recorded in the local courthouse. Without this step, the deed is not active. Therefore, if your former spouse filed for bankruptcy, their creditors can consider your home a retrievable asset.

Signer and Cosigner

As the name suggests, cosigned debt is that which you are responsible for as a cosigner to a loan. Being a listed signer, you have an equal financial responsibility to the loan, even if you are not the one making payments. As such, if you are cosigned on a loan which you ex-spouse later defaults on, it will result in creditors coming after you.

Furthermore, this loan (and lack of ability to pay it) will show up on your credit report, as well.

When to Contact a Bankruptcy Attorney

No one wants to be stuck in a situation where they are being punished for their ex-spouses debt. Unfortunately, it happens more often that people recognize. If you find yourself in a similar bind, it might be time to contact a bankruptcy attorney.

Making a positive impact on the lives of others is why I opened up the Jeffery B. Kelly Law Office— I want to make sure each one of our clients leaves in a better position than when they came in and my staff feels the same.

Our team is effective and responsive to your questions, helping you file and complete your bankruptcy without having to worry about confusion or legal jargon. Give us a call today at 770-637-1756 to find out how we can help.

Exemption to the Bankruptcy Means Test

There is a set of conditions in which it’s unnecessary to ask what is the income limit for filing chapter 7. You may not be subject to the bankruptcy means test in Georgia when the following applies:

• You are a veteran with disabilities or
• Your sole source of income is Social Security or
• The majority of your debts are business debt.

But don’t just assume that is true without careful preparation of your bankruptcy by a trained attorney. There could be other circumstances that may not make you except.

What is the Income Limit for Filing Chapter 7?

It is presumed that if your current household income is below the median income for a household of your size in Georgia, then you are eligible for filing a Chapter 7 bankruptcy because you pass the means test.  The following is the guideline that gives you the answer to the question- what is the income limit for filing chapter 7 in Georgia? As of November 2019, the median income in Georgia is the following amounts, based on the number of household members:

• 1- $49,236.00 
• 2- $63,850.00 
• 3- $72,426.00 
• 4- $85,763.00 
• 5-$94,763.00 
• 6-$103,763.00

To determine your annual monthly income for the purpose of the median income test, you first need to check the amount you earned in each of the last six calendar months. Make certain to call The Law Offices of Jeffrey B. Kelly to see if any of these limits have changed.

So what is the average you earned over the last six months? That average amount is used to determine your annual income. Simply multiply by 12 the average monthly income that you had over the past six months. If your income is over the limit in spite of your decline in income, you may simply need to wait for one, two, or three more months, etc. for your six-month average income to qualify you to file for Chapter 7 bankruptcy in Georgia.

People in Your Household & Median Income

There is a bit more to the median income figure suggested above, as relates to members of your household. If you have a roommate in your household who is not a dependent, you cannot include that person in your household size. You are required, however, to include the portion of your roommate’s income that contributes to the overall household income. There are many potential complications to filing for bankruptcy, and this is just one example.

Going at bankruptcy on your own is just plain stupid. Like this and other items, and law changes there are many factors that need to be taken into account during this difficult time.

How a Judge May View Your Ability to Pay

Whatever the amount of your income, other calculations may indicate that you have too much disposable income left over after expenses to qualify for Chapter 7 bankruptcy. All things considered, it’s not always enough to ask what is the income limit for filing Chapter 7 in Georgia? If you want to get a more accurate picture of where you stand in filing for Chapter 7, complete Form B122-A. This isn’t a legal requirement but it will give you a better idea of a trustee’s or judge’s point of view regarding your ability to pay.

A “totality of circumstances” test is part of Chapter 7 bankruptcy law in Georgia. No matter where you fall as far as your income as compared to the median income in the state, you could be barred from Chapter 7 bankruptcy eligibility. While social security income is not considered on the means test, it will be taken into account on your Schedule I of your bankruptcy petition. Judges sometimes rely on different forms as guides in considering the “totality of the circumstances.” Although the income formula excludes Social Security benefits income, Form B 106 Schedule I does not.

Computing Your Disposable Income

If your income does not fall below the average income for your household size in Georgia, it’s possible that you may still qualify for Chapter 7 bankruptcy. Part two of the process is determining what your disposable income is by taking the means test. This part of the process is more complicated, and it’s one of the reasons it’s often highly recommended that you hire a lawyer with bankruptcy experience. Basically, you subtract allowable expenses from your income.  The largest ones I typically see are daycare expenses or child support.

What Must be Counted as Income?

To find your disposable income under bankruptcy laws in Georgia, you begin with your take-home pay. Most sources of income will be included as you calculate income, including rental income, pensions, business income, interest and dividends, money paid toward your household expenses by others, and unemployment income.

Examples of Allowable Expenses in the Georgia Means Test

Once you’ve calculated your income, subtract your allowable expenses. These can include ()but are not limited) to the following:

• Secured debt payments such as your house and car
• Tax obligations
• Involuntary deductions such as mandatory retirement plans, uniforms, and union dues
• Term life, health, and disability insurance expenses
• Childcare
• Out-of-pocket health care costs other than insurance that must be incurred for the health and welfare of you and your dependents
• Charitable contributions made before the bankruptcy
• Education expenses for a disabled child or for employment
• Care of an elderly, disabled, or chronically ill person
• Expenses incurred for special circumstances, such as excessively high expenses following a natural disaster.  I am extremely hesitant to ever try the special circumstances argument. Chapter 7 trustees take their job seriously and won’t allow anyone to bend the rules.  

How Much Disposable Income is Too Much?

If your income falls within a certain range, you will be prohibited from filing a Chapter 7 bankruptcy and will, instead, need to repay at least some of your debts with a Chapter 13 bankruptcy. If the projected amount of your disposable income over the next five years totals less than $100 per month, you qualify to file a Chapter 7 bankruptcy.

Contact the Law Office of Jeffrey B. Kelly

Once it is determined that you qualify to file for a Chapter 7 bankruptcy, keep in mind that it doesn’t necessarily mean that it’s your best option. For instance, if you are attempting to keep secured property such as a home with a mortgage and you are behind on your payments, Chapter 7 bankruptcy is likely not best for you. Chapter 13 bankruptcy might be a better option in that situation.  It would be in your best interests to interests to consult with an attorney.

Jeffrey B. Kelly, with more than 21 years of experience in consumer bankruptcy, offers skilled legal representation for your Chapter 7 bankruptcy case. We are proud to say that our goal is to treat each person who visits the Law Office of Jeffrey B. Kelly with respect and kindness, and you can count on receiving personal attention. We will answer all of your complex questions, including what is the income limit for filing Chapter 7? Schedule your free evaluation by calling 770-637-1756.

Getting financing for a new vehicle while you are in an active Chapter 13 case is almost impossible.  Yes, some people do it but it is an extremely difficult process.

Step one is finding a dealer who is willing to finance a vehicle in an active bankruptcy case.  The next step is to get court approval. The court approval process will take at least thirty days.  The wait for court approval is the reason most lenders do not want to deal with active Chapter 13 cases.

A Chapter 7 Bankruptcy Auto Loan 

A Chapter 7 bankruptcy is a liquidation in which your debts are wiped out and you get a “Fresh Start,” except that your bankruptcy filing stays on your credit reports for up to a decade. This could cause concern for people considering Chapter 7 bankruptcy and wondering about their next car and how to pay for it.

An Open Chapter 7 Bankruptcy Auto Loan

Trying to get an auto loan while you are in an active Chapter 7 case is just plain stupid.  Most Chapter 7 cases will discharge and close out within 90 days of the filing. It is much better to wait until the case is discharged.

A Car Loan After Discharge of Chapter 7 Bankruptcy

Once your Chapter 7 bankruptcy has been discharged, you are in a better position to finance a car with a bankruptcy lender. The goal of a bankruptcy car loan is to secure a reliable automobile with a payment plan that fits comfortably within your budget. Remember, you still have options, in spite of the bankruptcy.  It is good to do comparison shopping to find the best vehicle and for the most reasonable rate you can get.

A person can get a Chapter 7 discharge only once every 8 years.  Anyone buying a car after completely a Chapter 7 bankruptcy should proceed with extreme caution because if things go wrong, this car creditor could have potentially 8 years to take a bite out of you.  If someone does get into financial trouble after a Chapter 7 discharge, Chapter 13 is an option. However, to receive a discharge in a Chapter 13, the case must filed 4 years after the Chapter 7 was filed.

Contact The Law Office of Jeffrey B. Kelly

If you need a bankruptcy attorney, we invite you to get in touch with us at The Law Office of Jeffrey B. Kelly. Since the inception of our law firm in 2006, we have filed more than 5,200 bankruptcy cases. With us handling your bankruptcy, you will always be able to speak directly with a bankruptcy attorney, should a situation arise during your case. Contact The Law Office of Jeffrey B. Kelly by calling (770) 637-1756 today if you live in or near any of our Georgia locations, which include Rome, Dalton, Kennesaw, Dallas, Cartersville, and Marietta. We can provide the legal representation you need and answer any questions you have about a bankruptcy car loan in Georgia.

Compound interest is a great thing when it works in your favor. It has made Warren Buffett one of the richest men in the world. Warren Buffett states, “My wealth has come from a combination of living in America, some lucky genes, and compound interest. “

When compound interest is working against you, it can take away all of your wealth.

How Title Pawns Work

Title loans work like this, let’s say you have a car worth $5,000.00 that is completely paid off. Typically, I see potential clients come in the office with a loan amount of around $1000 on most title pawn loans.

The Georgia Department of Law – Consumer Protection Division states that the interest rate that a title pawn company is allowed to charge is “capped by law at 25 percent monthly (300 percent annually) for the first 3 months and 12.5 percent per month after that (150 percent annually). This means a combined maximum yearly interest rate of 187.5 percent.”

When the balance owed on an auto title loan is not paid, the title of the vehicle transfers to the title pawn company by operation of law. What happens if the car is worth $5,000 and you owe only $1000 but cannot afford to repay the loan? The answer is that you lose the car. Danger, danger, danger!

What Should a person do who is tempted to take out a title pawn loan?

My advice is that you should ask yourself this question. Do I really need ……….? Can I live without the thing that I think I need to save with a title loan?

If things are truly bad financially, the best decision might be to take care of the entire situation with Chapter 13 or Chapter 7 bankruptcy. Consider meeting with a bankruptcy attorney before you take out a title pawn loan.

Why do Bankruptcy Attorneys hate Title Pawn loans so much?

Bankruptcy attorneys hate title pawn loans because of the ruling by the 11th Circuit Court of Appeals in Re Jonathan Northington. The ruling basically states that Chapter 13 does not save a person from a title pawn. Per the ruling in this case, a title loan must be completely paid within 60 days of the case filing. This can be extremely problematic for large loan balances.

However, a title pawn with a low balance can be paid through a Chapter 13 plan. If you are in any kind of sticky debt situation we may be able to help you get out of title pawns. Make sure you take advantage of a free consultation and call us today at 770-881-8449.