...the Law Office of...

Practice Area: Bankruptcy

BANKRUPTCY

Chapter 7: Your case can begin with $500 down or you can make payments and we will file your petition once you have paid the total of $500; the total attorney fees are $1,500.00 plus $299 filing fees and costs of debtor education classes

Chapter 13 : Your case can begin with $600.00 down, which includes $274 filing fees, plus costs of debtor education classes; you can make payments to us and we will file your petition once you have paid the initial $600; total amount of attorney fees will depend upon your repayment plan and statutory limits

 

 

About Bankruptcy:*

Bankruptcy consists of several types of chapters that contain different mechanisms for addressing financial problems.

A Chapter 7 bankruptcy, also known as a liquidation, allows a debtor to eliminate or discharge (forgive) all or some of his or her unsecured debts. Anyone, even a corporation, can file a Chapter 7 bankruptcy case. A Chapter 7 case will also allow a debtor to surrender secured property back to the creditor if the debtor can no longer afford to keep it. On the other hand, if a debtor can afford to keep his or her property and that property does not have excessive equity, then it can be retained by reaffirming the debt with the creditor.

Once a secured debt is reaffirmed, payments on secured debt will continue pursuant to the terms of the contract. Upon the filing of a Chapter 7 bankruptcy, a trustee is appointed to preside over the case and determine whether there are any nonexempt assets to liquidate for the benefit of creditors. Thus, if a trustee determines that your asset (for example your car or home) has equity and you cannot exempt this equity under Georgia law, then the trustee can sell your asset and pay your unsecured creditors with the proceeds from this sale.

For debtors with disposable income that do not qualify for filing a Chapter 7 bankruptcy, a Chapter 13 bankruptcy can be filed. A Chapter 13 bankruptcy, known as a "Wage Earners Plan," allows a debtor to protect valuable assets and also assist a debtor who has fallen behind on his or her mortgage or car payment to catch up on those payments through a reorganization plan. In this plan, a debtor proposes to pay back his or her creditors over a period of time. The plan is presented to a bankruptcy judge for approval and upon approval is administered by a Chapter 13 trustee. The Chapter 13 trustee collects and distributes funds paid by the debtor to all of his or her creditors based on the plan approved by the Bankruptcy Court. Payments on long-term debt (for example, a mortgage on a home being retained) must continue at their contract rate after the filing, in addition to the Chapter 13 plan payment.

This type of bankruptcy has certain financial limits and can only be filed by individuals having the income to fund a case as well as secured debt not exceeding $1,010,650 and unsecured debt not exceeding $336,900 (these figures are adjusted every three years). If a debtor exceeds these limits, then he or she must look to a Chapter 11 case should this type of protection from creditors be desired. A Chapter 12 bankruptcy is similar in nature to a Chapter 13, but is restricted to those individuals who earn their living from farming or fishing.

*Excerpted from the State Bar of Georgia Bankruptcy Pamphlet.

This pamphlet was prepared by the Bankruptcy Law Section of the State Bar of Georgia as a public service. It is not intended to be a comprehensive statement of law. Its purpose is to inform, not to advise on any specific legal problem. If you have specific questions regarding any matter contained in this pamphlet, you are encouraged to consult an attorney. The dollar amounts and information are as of June 2009. These numbers do change so you must consult with an attorney or someone in the bankruptcy clerk's office.