Who Is Eligible?

You may need the help of experienced Atlanta bankruptcy lawyers in order to determine if you are eligible for chapter 13 filing. The state laws have defined certain qualifying criteria that you must meet. In general, it is a 2-step process. First, you have to pass a means test – your regular monthly income (after deducting regular expenses) must be higher than the median income of the people residing in Georgia. Second, you must get a certificate from a state-approved credit counselor. The counselor reviews your financial situation thoroughly. If they get convinced that you can regain control of your finances provided the repayment terms are made a little easier, they may recommend “wage earner’s plan”, which is just another term for chapter 13 filing.

Marital Status

Even if you are married, you can file your petition under chapter 13 individually with the help of Atlanta bankruptcy lawyers. If you owe certain debts where your spouse is a co-signer, there will be a special payment class in your restructured repayment plan, as per which you will have to pay all those debts in full.

Debt Limit

The chapter 13 laws in Atlanta have made certain provisions regarding the debt limit as well. For example, you can qualify for this type of filing only if the unsecured debts do not exceed $336,900 and the secured debts do not exceed $1,010,650. It is very important for you to keep in mind that the figures regarding debt limits change over every three years. The current figures are applicable since 2009.

Court Proceedings

Once your petition is filed, you will have to attend a Section 341 hearing. In general terms, it is a meeting with the creditors under the presence of authorities appointed by the court. The first meeting is often scheduled around 30 days after filing. In most cases, it is the lawyers only who talk on behalf of their clients in these meetings.

The court also orders an “automatic stay” after your petition is accepted. This automatic stay protects you from creditors, as it becomes illegal to make collection calls or make any attempt to recover the debt. Having the best Atlanta bankruptcy lawyers on your side may also make things a little easier for you.

Choosing Between Chapter 7 And Chapter 13

If you must file a petition, you will have to decide whether you should file under chapter 7 or chapter 13, which is again not an easy decision, especially now that the new laws about means test and credit counseling are applicable in Atlanta also. Now, you cannot just go ahead and file your petition in the court. Once you decide that bankruptcy is the right option in your situation, you will have to do a means test and get your financial situation reviewed thoroughly by a state-approved credit counselor. If the monthly income (after deducting the necessary expenses) is more than the median income of Atlanta, you will not qualify for chapter 7. In that case, the petition must be filed under chapter 13, where you will be offered a more favorable repayment plan and you will be allowed to continue with your business and keep all your assets. Once you decide which type of bankruptcy you qualify for, you must get prepared thoroughly in order to deal with the legal procedure. Your Atlanta bankruptcy lawyer can help you in this regard.

Property Exemptions And Discharge Of Debts

As per chapter 7, most of your assets and properties will be sold off in order to pay off your debts that you owe to different creditors. However, Atlanta laws allow you to keep certain assets and properties or at least their value (up to a certain limit) in cash. But at the same time, not all the debts are discharged. Debts like student loan, a liability to pay personal injury compensation as part of a lawsuit, and other such things are not discharged. It means even if the court declares you as bankrupt, you will still be liable to pay those debts. An experienced Atlanta bankruptcy lawyer can play a crucial role when it comes to dealing with all these complexities.

It is not just the paperwork involved in these cases where you need help of an attorney. You can have a peek here to find trustworthy lawyers. Unless you are an expert in this field of law, you will need a good lawyer at every step of the process. For example, an attorney can educate you on better alternatives to avoid bankruptcy. If there are no alternatives, they will help you qualify for the right type of bankruptcy. They will handle the paperwork efficiently to avoid unnecessary hassles. They will help you prepare a list of all your assets in a way to make sure you get maximum exemptions. Overall, the importance of an Atlanta bankruptcy lawyer just cannot be ignored.