Chapter 7 is a liquidation of debts under the protection of the federal government for consumers with limited income
If you don’t have any assets, or very little equity in those assets, and limited income then chapter 7 may be the best choice.
If you don’t have any assets, or very little equity in those assets, and limited income then chapter 7 may be the best choice.
In order to qualify for Chapter 7 you need to ensure that you not only pass the means test but that you also don’t have excess income left over in your normal monthly income.
If you are overwhelmed by credit card debt, past-due medical bills, and other crushing expenses, filing for Chapter 7 bankruptcy may be a way for you to get some relief from creditors and start fresh with your finances. A skillful Atlanta bankruptcy attorney can advise individuals and businesses alike on whether Chapter 7 may be the right choice for them if filing here in Georgia.
In order to file for Chapter 7, you must meet some requirements.
It is important to note that there are strict income limits to qualify for Chapter 7 bankruptcy. To learn more about whether you qualify, contact our knowledgeable Chapter 7 bankruptcy attorneys today.
What Debt Can You Get Rid of in Chapter 7?
What Debt Can You NOT Get Rid of in Chapter 7?
Why Could a Chapter 7 Discharge Be Denied?
99% of individual debtors receive a discharge in Chapter 7 cases (excluding those that are converted or dismissed) however in a few circumstances you could be denied.
Reasons a Chapter 7 discharge could be denied:
Working with a qualified Chapter 7 Atlanta bankruptcy lawyer can help you avoid making mistakes that may prove harmful to your case. Schedule a free consultation with our team today.
Chapter 7 Bankruptcy Usually Lasts About 4-5 Months from Start to Finish
The first step in a Chapter 7 bankruptcy case is to meet with an experienced bankruptcy attorney to determine whether you qualify. There are strict income limits that are based on the state’s median income level, and your attorney can help you determine whether you may be eligible or whether you should consider filing for Chapter 13 bankruptcy instead.
Although most Chapter 7 cases move through the system smoothly, our experienced bankruptcy lawyers are always prepared for bumps in the road. We have extensive experience in bankruptcy litigation, and if needed, we can help you convert a Chapter 7 into a Chapter 13.
There are many situations in which you may not be able to file Chapter 7 or a Chapter 13 is a better fit due to your financial goals. An experienced bankruptcy attorney can provide you with the best options based on your needs.
Decide which chapter to file can be confusing. Chapter 7 bankruptcy forces you to liquidate your assets that are not protected by exemptions and repay creditors. This means that if you have too much equity in your home that the Chapter 7 Trustee will sell the home and use the proceeds to pay your creditors. You may be OK with that but most people want to keep their homes. Typically, the entire Chapter 7 process is completed within four to six months.
Keep in mind though that Chapter 7 has disadvantages, too. Lenders who have already filed to foreclose on your home are only temporarily stalled, and other debts such as mortgage liens can be collected after the case is concluded. Cosigners on your debt are still obligated to pay. If you are facing a foreclosure and want to keep your house then you need to file a Chapter 13 and not a Chapter 7 bankruptcy.
Filing for Chapter 13 protection allows you to keep all your property. It simply extends the amount of time you have to repay what you owe after the bankruptcy court issues its ruling. It is possible to file a Chapter 13 bankruptcy after a Chapter 7 is completed, allowing you to seek a reduction in whatever debts remain from a Chapter 7 discharge. Chapter 13 will also protect your cosigners against collection efforts.
Chapter 7 cases do not allow you to remove junior liens or to “cram down” secured loans on cars and furniture. You also need to remember that you have to qualify for Chapter 7 bankruptcy and your current income and past six months of income have to be reviewed.
Our law firm focuses on the client and their needs. We make the consultation and filing process as smooth as possible for new clients.
The good news is that our firm will pull your credit reports and perform a nationwide lien search. Just review the list of documents that the court will require below.
Proof of Income
If you are filing a Chapter 13 case you will be required to provide the last 60 days of income statements. If you are unemployed, self-employed, or receive SSI you can sign an affidavit as to this in our office or online.
Most Recently Filed Tax Return
The court will require a copy of your last filed tax return. If you are not required to file taxes you can sign an affidavit as to this. If you have misplaced your copy we can request a transcript when you come into our office.
Pre-Filing Credit Counseling Certificate
In order for your case to be valid upon filing you must complete a pre-filing credit counseling course. There are several different companies that provide this service. The three companies that most of our clients use are:
Saedi Law Group has achieved its success by providing honest and experienced legal advice to Georgia consumers. We provide real-life options for clients and walk them through the entire process.
We invite you to contact us either online or by phone at 404-919-7296 to schedule a free confidential consultation to review your personal financial situation and what options we can provide to protect you from creditors. For additional information about bankruptcy please also check out our YouTube Channel which has up to date vlogs on issues related to personal bankruptcy.