Chapter 7 Bankruptcy

File Chapter 7 Bankruptcy in Georgia Today!

Often, clients have multiple debts of different types because they have been struggling to pay anything due to deteriorating financial circumstances. Bankruptcy is their only option, but the question is which kind of filing do they need?

Chapter 7 bankruptcy is often called clean-slate, fresh-start, or liquidation bankruptcy because debtors can erase all their unsecured debts without losing major items that are essential for living, like their homes and cars.

Some of the most common debts that can be erased include:

  • Medical bills
  • Personal loans
  • Credit card debts
  • Overdue rent payments
  • Unpaid mortgage payments
  • Utility Bills
  • Promissory Notes

A fresh-start bankruptcy may also be used to stop wage garnishments, bank account levies, and other collection actions by creditors.

Additionally, there are several non-dischargeable debts including child support and alimony debts as well as some IRS enforceable actions that can be halted.

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How to Qualify for Chapter 7 Bankruptcy

When the most recent bankruptcy law was introduced in 2005, the GA Means Test was established to evaluate the financial state of debtors and determine which type of bankruptcy was most appropriate.

Rather than being a test itself, the means test involves a mathematical formula that looks at everything relating to a person’s financial circumstances, including the type of debts he or she has, as well as their monthly income. It also takes monthly expenses into account and determines whether the debtor is above or below the current median income in Georgia.

This means that everyone in Georgia is assessed in the same way to determine whether they qualify for a clean-slate bankruptcy that will allow them to start over.

$999 Package Deal for an EZ Chapter 7

If you think you qualify for a Chapter 7 bankruptcy you can apply for The SJK Law Firm's $999 package deal that involves a one-off fee with no additional charges.

Once you qualify, one of the highly experienced Chapter 7 bankruptcy attorneys at my firm will guide you through the procedure and help get your life back to normal as quickly as humanly possible.

Please be aware that there are Georgia exemptions that apply to the equity that is owned by debtors. So, for example, if your home is worth more money than you owe, a Chapter 7 bankruptcy won’t work for you. That’s why you need an experienced bankruptcy attorney to help you.

The attorneys at The SJK Law Firm are knowledgeable and highly experienced in all the current U.S. bankruptcy laws. Call today to schedule a consultation and get the process started.

Frequently Asked Questions

1What is Chapter 7 bankruptcy?
Chapter 7 allows you to discharge most of your unsecured debts and it has become known as the “Clean Slate” or “Liquidation” bankruptcy. It is usually the choice of people below the median income that have no assets that they need to protect.
2Is Chapter 7 better than Chapter 13?
Neither type of bankruptcy is better or worse than the other. They are just used for different situations. If you have steady income and are able to pay your debts but you need more time, then Chapter 13 would be used. If you are under the median income and you have no assets that you want to protect then Chapter 7 should be your choice. In most cases, you will need to talk with a qualified Georgia bankruptcy attorney to guide you through the process and help to decide which is better for you.
3Am I allowed to hold onto assets under Chapter 7?
It is up to you. You can allow the secured debt to be surrendered and the back debt will be discharged or you can reaffirm the secured debt and continue to make your monthly payments to retain ownership.
4What does "reaffirming debt" mean?
A reaffirmation agreement is a way to make yourself liable for a debt after bankruptcy has discharged it. It can be used to retain possession of a car, for instance, by agreeing to continue making payments. It can also be used by unscrupulous companies to trick a person into indebting themselves to a creditor after the debt has been legally wiped away. You should always talk with a Georgia bankruptcy attorney before signing any reaffirmation agreement to ensure that it is above board.
5Which of my debts will be discharged?
For the most part, the only debts that will be discharged are the ones that are listed on your bankruptcy schedule. Also, to be discharged the debt must have been incurred before you filed for the bankruptcy. For a more specific list, contact us for a free consultation.
6What debts can't be discharged with chapter 7?
There are a few types of debt that cannot be discharged. They include: child support and maintenance payments, student loans, past income taxes, fines and penalties resulting from criminal prosecution, debts resulting from drunk driving and debts resulting from fraud. You should contact a Georgia bankruptcy attorney for a full list of these debts.
7Can you re-file for Chapter 7?
Once you have received your discharge from a Chapter 7 case you cannot refill for another 8 years.
8Does filing Chapter 7 hurt my credit score?
Chapter 7 will actually be your first step toward repairing your credit. If you are considering filings then you have probably had a debt for over 3 months, had a repossession or a foreclosure. Any of these things can really damage your credit.