Tired of the never-ending phone calls and letters from collection agencies, trying to get you to pay up? If you’ve gotten to the point where you dread even answering the phone because you think it might be a creditor, perhaps it’s time to think about eliminating your debt, and fast.
In fact, Chapter 7 Bankruptcy might be a good option for you.
Filing For Chapter 7 Bankruptcy
- File the paperwork – We will assist you in filing all of the necessary forms with the bankruptcy court.
- Attend a Meeting of Creditors – You will have to attend a meeting about a month after initially filing. Despite its name, creditors rarely attend these meetings.
- You will be discharged of your debts – 2 to 3 months after your meeting, if all goes well, you will will be discharged from your debts. You will be able to have a clean slate, and can start preparing for your new financial future.
Debts That Chapter 7 Bankruptcy Does Not Discharge
- alimony and debts from a divorce
- most student loan debt
- child support-related debts
- debts for personal injury or death caused by you driving your vehicle while intoxicated
- income taxes for the most recent three years
- penalties for violating the law: traffic tickets, etc.
Protecting Your Assets
In Chapter 7 Bankruptcy, there are laws that allow you to protect some personal property that you might own like:
- General personal property – You will be able to keep household items: clothing, furniture, and other valuables, up to the dollar limits specified in the exemption laws. You will also most likely be able to keep your vehicle, depending on the amount of equity available.
- Equity in your place of residence – Also called “homestead exemption.” In Georgia, you are entitled to homestead exemption if the home is considered your legal residence and you actually live in it.
- Public benefits – Social Security, welfare, worker’s compensation and unemployment insurance, are all protected.
- Retirement plan – Pensions that that meet the requirement of the Employee Retirement Income Security Act are totally protected in bankruptcy. Many other retirement benefits are as well, while some are not.
- Most IRA’s and 401k’s are protected.
Filing For Bankruptcy and Your Credit Score
After you’ve filed for bankruptcy, simply remember to make on-time payments for all your new debts, and you can work up to a good credit rating in a short amount of time. Sometimes, filing for bankruptcy can actually help your credit score because discharging your debts improves your “debt to income ratio, ” a major factor in determining how “credit worthy” you are. Nevertheless, your bankruptcy filing will still appear on your credit score for another 7-10 years.
If you want to eliminate your debt quickly with Chapter 7 Bankruptcy, or if you just want to discuss your other financial options for an expert, call us today: 404-763-3623 or send us an email. Our Atlanta Bankruptcy Attorneys are standing by to help. Your initial consultation is free.