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Georgia resident’s Chapter 7 bankruptcy discharges $400k in debt Atlanta, GA

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Georgia resident’s Chapter 7 bankruptcy discharges $400k in debt

judge gavel on a pile of banknotes

Earlier this month, a former chief of staff for an out-of-state big city mayor was allowed to discharge more than $400,000 in debts. This former mayoral staff member filed for Chapter 7 bankruptcy in Georgia where she moved following a scandal that resulted in her pleading guilty to felony obstruction of justice charges after a newspaper published text messages which indicated she had indeed lied under oath in a court trial involving her former boss, Kwame Kilpatrick.

Although the judge in the bankruptcy court approved the discharge of almost $400,000 in debt, she was not able to discharge back taxes she owes to the IRS or the restitution she agreed to pay the city of Detroit after pleading guilty to the obstruction charges. Certain debts, such as taxes, court judgments or criminal or civil restitution or even the majority of student loans are not dischargeable in bankruptcy. Student loans currently may be discharged but only under extreme long-term demonstrated hardship cases.

By having the vast majority of her debt discharged, including medical debt the former chief of staff will free up much needed funds in order to meet her obligations to the city and to the IRS. Filling for bankruptcy protection has both immediate and long-term benefits that can help a person overcome their financial difficulties rather than persist in vicious cycle of increasing debt and a decreasing ability to pay that debt. The immediate benefits can be seen in the requirement that all debt collectors cease all collection efforts as of the date of filing.

The long-term benefits are in discharging much if not all of a person’s unsecured debts so he or she can emerge with a clean financial slate. When a person is struggling with meeting their monthly financial obligations it can be helpful to consult with a bankruptcy attorney who will review his or her particular circumstances, including a home, the type of debt currently held and current income and steps you can take to seek debt relief. Bankruptcy may not be the only option available to you but sometimes just knowing what your specific options are can bring immediate relief to you and your family.

Source: Detroit Free Press, “Bankruptcy judge lets Christine Beatty dump much of debt, but not restitution to Detroit,” Teresa Baldas, Feb. 6, 2013

Posted on behalf of Gingold & Gingold

1718 Peachtree St NW, #385
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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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