If you are deeply in debt and can’t find a way out, filing for bankruptcy might be the best solution. As soon as you file, an automatic stay is ordered by the court. At this point, creditors will have to stop trying to collect the money you owe them – at least for a while.
Filing for bankruptcy can eliminate certain types of debt, but not all. Also, the type of bankruptcy you opt for will have a very real impact on how the process plays out.
Types of Bankruptcy in Georgia
There are two primary types of bankruptcy in Georgia, Chapter 7, and Chapter 13. Your financial circumstances and eligibility will determine which route you should take.
The process is relatively quick (it typically take only three to four months to discharge), and is very easy.
The debts covered by the court-approved repayment plan are discharged as soon as the payment plan is complete. Unlike a Chapter 7 bankruptcy, Chapter 13 enables debtors to keep their homes, cars, and other property provided they catch up with missed payments and debt payments that are non-dischargeable.
Assuming you qualify for a Chapter 7 and opt to go that route, which debts will you be able to erase?
There’s a good reason that Chapter 7 bankruptcies are known as a fresh start. The goal of a Chapter 7 bankruptcy is to discharge debt. Even though it’s impossible to wipe out non-dischargeable debts (see below), you can get rid of most, if not all, dischargeable debts.
Some examples of dischargeable debts include medical bills, credit card debt, overdue utility bills, and even personal loans that have been made by family and friends.
The judge has the right to decide whether some debts are dischargeable. In general terms, however, the law is very clear and there are certain debts considered non-dischargeable without the need for any legal hearing.
Not sure what to do? If you’re in Georgia, the highly experienced bankruptcy attorneys in the Law Office of Stanley J. Kakol, Jr., will advise you.
We can help you determine which bankruptcy route is right for you and get you on the path to a fresh start. Call to schedule your free bankruptcy consultation today.