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Basics on Bankruptcy Help for Every Financial Situation Atlanta, GA

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Basics on Bankruptcy – Help for Every Financial Situation

For most people in Georgia, the decision to file bankruptcy is not an easy one. In many cases, people are reticent because they are not aware of the options that bankruptcy offers. Once people understand bankruptcy, they realize that it can be an excellent tool for putting their families on a better financial track and giving them a fresh start for the future.

Although there is no substitute for speaking with an experienced Atlanta bankruptcy lawyer to determine the best option for your situation, the following article will briefly review the basics of bankruptcy.

Different Bankruptcy Options

The majority of people who file bankruptcy pursue either Chapter 7 or Chapter 13 bankruptcy. Both bankruptcies are designed to give people a fresh start. While their processes are unique, there are some truths that apply to both of them.

First, you will be able to keep your possessions, including your home, your car and your retirement accounts. Whether you are in Marietta, Cumming, Dallas, Gainesville, Atlanta or Douglasville, there are bankruptcy exemptions in Georgia that protect your possessions from being disposed of in your bankruptcy estate.

Second, once your case has been filed, your creditors are barred from pursuing you any further. An injunction known as the “automatic stay” will stop all court actions, including garnishments and foreclosures.

Third, there are certain debts that may not be discharged. Student loans, child support, alimony, any debts incurred by fraud or any personal injury debts caused by driving while intoxicated cannot be discharged in a bankruptcy.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy was designed to give people a fresh start. It allows for the wiping out of various debts, including:

  • Credit card debt
  • Medical debt
  • Unsecured loans
  • Deficiency balances from old auto loans and foreclosures
  • Income tax debt (in certain situations)

Anyone filing Chapter 7 bankruptcy will list all of their assets, debts, income (if any) and expenses. A bankruptcy attorney will help determine how to exempt your assets.

The “means test” refers to the median family income for a given household size. It varies depending on each state and is periodically adjusted depending on Census Bureau statistics. Even people whose household family income exceeds the median family income may still qualify depending on their circumstances and expenses.

Chapter 7 bankruptcy is often attractive to people because it gives them a fresh start. Once it is filed, it generally takes approximately 30 days for the hearing and 60 days after that a person receives a discharge.

Chapter 13 Bankruptcy

Although Chapter 13 bankruptcy takes longer than Chapter 7, between 36 to 60 months, it has a number of advantages that make it attractive to many people in the long term.

A Chapter 13 bankruptcy requires the creation and approval of a repayment plan. The amount of repayment is determined by a combination of what income is available and what needs to be paid.

People with non-dischargeable tax debt often use Chapter 13 bankruptcy to pay off what they owe to the government. The advantage of using bankruptcy to resolve this debt is that you are protected from having your wages garnished and are not forced to pay crushing interest and penalties.

Another benefit is often the opportunity to make car payments more manageable. If you have a secured debt, such as a car, you must continue to pay for the car to keep it. People often save money on cars by placing them into the Chapter 13 plan, which can help lower their interest rate or at least extend the period over which the car is paid, thereby reducing their monthly car loan payment.

The most popular use of a Chapter 13 is to stop foreclosure. Mortgage arrears can be paid back in the plan. As long as future payments are not missed, the homeowner will be protected from foreclosure.

Because every situation is unique, there is not one kind of bankruptcy that is better for all individuals. Determining the best bankruptcy for you and your family will depend on your needs. If you are buried in debt and are looking for some creative solutions to your financial problems, you should speak with an experienced Atlanta bankruptcy attorney to review your options.

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Our Client Reviews

Gingold & Gingold LLC
5.0 / 5.0

Based on 28 reviews

Jack L.

They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

All C.

Mr. Gingold was recommended by an attorney I had worked with previously. I met with Ira Gingold to discuss credit issues. He went over each specific issue thoroughly. He advised me of the potential outcomes. He did all this in one meeting for a very reasonable price. When we finished I was confident in moving forward with a resolution. He definitely wants to help people take the appropriate course of action for their circumstance.

Karen B.

Dear Mr Gingold, There are so many reasons to be thankful for all you have done and will do. Anyone who has ever had unfavorable experiences with an attorney or the legal system will feel the trepidation that I experienced once I realized that my situation seemed hopeless. It was by chance and happily good luck that I decided to put my future and sanity into your hands. I was mortified at having to deal with my debts by claiming bankruptcy. I remember in our first meeting how you assured me that I was not alone and should not feel ashamed. And, anyone in this position obviously does not have money to spare and you were clear about all the costs and allowing me to pay according to my own ability to do so. You advised me in all aspects of the law, but also, you were at each meeting incredibly supportive and complementary of my personal and professional plans. Anyone else in this situation should feel blessed to have access to your expertise and support.

Lyla B.

I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

Julie T.

Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

Sherard W.

I cannot say enough about this law firm. From the initial consultation to our discharge, the entire office kept me updated with every step of the entire process. I came to the Gingold after a bad experience with another law firm. Ira and Jamie immediately began treating me like family through this experience. In the end, they assisted with eliminating many debts including my 2nd mortgage. I cannot say enough about the experience and knowledge that Ira brought to the table from the office visits to the court time. Thank you very much for helping me through this tough time. Thank you.

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