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How does a bankruptcy filing affect home ownership in Georgia? Atlanta, GA

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How does a bankruptcy filing affect home ownership in Georgia?

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Many Atlanta residents who are in need of serious debt relief may be avoiding filing for bankruptcy protection because they are worried that this will cause them to lose their homes. However, bankruptcy is actually a viable option for many homeowners, as in many cases it allows people to keep their homes and become freed from a number of their debts.

The relationship between bankruptcy and homeownership, however, is very complicated. It is important that people discuss their debt relief needs with a bankruptcy attorney and ensure that they understand all of the potential consequences to home ownership before filing.

When a person files a bankruptcy petition in Georgia, a hold is automatically placed on his or her debts. This is called a stay, and it means that creditors and mortgage lenders cannot take any legal action – including foreclosure – against the petitioner. In fact, creditors, collectors and lenders cannot even contact petitioners by phone or letter during the stay period.

As a result of the stay, depending on the specifics of a case, bankruptcy attorneys are often able to help homeowners avoid foreclosure.

In addition to the automatic stay, Georgia has a homestead exemption law that generally protects bankruptcy filers from losing their homes, cars and other personal assets.

When a person files for bankruptcy, a trustee evaluates the filer’s assets and may decide to sell some of them to pay off creditors. Assets that are protected by a homestead exemption cannot be sold off.

So, the common belief that a bankruptcy filing will cause a person to lose his or her home and all other property is a myth. However, the homestead exemption is very complicated, and people should always seek legal counsel before pursuing bankruptcy.

Source: Fox Business, “How Safe is My Home in Chapter 7 Bankruptcy?” Aug. 21, 2013

Posted on behalf of Gingold & Gingold

1718 Peachtree St NW, #385
Atlanta, GA 30309

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Gingold & Gingold LLC
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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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