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What happens to the income I earn after filing for bankruptcy? Atlanta, GA

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What happens to the income I earn after filing for bankruptcy?

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A common question that Atlanta residents have regarding Chapter 7 bankruptcy is whether they will lose all of their property by seeking bankruptcy protection. Here in Georgia, filers are able to hold onto much of their property.

Under the law, certain assets such as homes, cars, retirement accounts and personal belongings are generally exempt from bankruptcy. Additionally, typically only the assets that a person had prior to filing are part of the bankruptcy. Income that a person is expected to earn later generally is not considered, although this is a very complicated area of the law.

The ex-football coach of the Arkansas Razorbacks filed for Chapter 7 bankruptcy last year, and his case was just settled this week after some complicated questions were resolved in regard to his assets.

At the time of his filing, the man claimed that he had $1.3 million in assets and $40.7 million in debt. He was also under contract with the team at the time that he filed in September 2012. That contract stated that the majority of his pay was to be deferred until that winter. The way that the contract was written meant that he was able to claim a low income when he filed for bankruptcy – even though his income was set to rise shortly thereafter.

There were some questions as to whether the contract was structured that way in order to allow the man to keep that money rather than have it be paid to his creditors. However, a bankruptcy trustee ultimately decided that the contract was not fraudulent.

Many bankruptcy cases do not involve such inquiries, but this case is a reminder that, in general, bankruptcy filers can keep what they earn after filing for bankruptcy. Only the assets acquired by the debtor prior to filing are part of the bankruptcy estate.

Source: USA Today, “Ex-Arkansas coach discharged of debt in bankruptcy deal,” Brent Schrotenboer, Sept. 5, 2013

Posted on behalf of Gingold & Gingold

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Atlanta, GA 30309

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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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