IMPORTANT INFORMATION BEFORE FILING

NOTICE TO INDIVIDUAL CONSUMER DEBTOR UNDER § 342(b)
OF THE BANKRUPTCY CODE

REQUIRED: Debt Counseling Under the New Bankruptcy Law

This section explains the information our lawyers require to be able to best assist you with your decision to file chapter 7 or chapter 13 bankruptcy.

The more information you are able to provide, the better our attorneys will be able to present your case.

Consumer bankruptcy is a method by which individuals may be able to get out from under insurmountable debt and make a fresh start, albeit with a negative impact on their credit ratings. There are two options: liquidating assets to pay off creditors, and filing a wage-earner plan that allows the debtor to retain more assets while working to pay off his or her debts. An experienced bankruptcy attorney can help you choose the right course of action for your particular situation.

CHAPTER 7 Liquidation

Bankruptcy law provides two basic forms of relief: (1) liquidation, and (2) rehabilitation, also known as reorganization. Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. In a Chapter 7 liquidation case, a bankruptcy "trustee" collects the debtor's "nonexempt" property (as opposed to the property that the debtor is allowed to keep and that is not subject to the creditors' claims) and converts it into cash. The trustee then distributes the resulting funds among the various creditors according to an order of priority described in the Bankruptcy Code. Not all creditors receive the full amount owed through this process; in fact, some may receive no payment at all. When liquidation and distribution are complete, the bankruptcy court may discharge any remaining debts of an individual (non-business) debtor. If the debtor is a corporation, it ceases to exist after liquidation and distribution, and there is therefore no reason for further discharge because the creditors cannot seek payment from an entity that no longer exists.
If you are being crippled by high credit card debt or medical bills, contacting a bankruptcy lawyer to file a Chapter 7 may be a way for you to discharge those debts. Also called “liquidation,” “debt wipe-out” or “fresh start,” Chapter 7 cases are typically resolved 4 months after the filing date. You will receive a Bankruptcy Discharge and your obligation to the discharged debts will be over. Together we determine is this is the best course of action for you.

CHAPTER 13 Reorganization

In a rehabilitation or reorganization, the option often preferred by the courts, creditors may be provided with a better opportunity to recoup what they are owed. This type of bankruptcy is governed by Chapter 13 of the Bankruptcy Code. Chapter 13 generally applies to individual consumers with smaller debts. Reorganization provides debtors with a greater opportunity to retain their assets if they agree to pay off their debts according to a plan approved by the bankruptcy court. If the debtor fails to adhere to the plan, however, the court may still order liquidation. If your income is determined to be too high for a Chapter 7 procedure, but you are facing foreclosure on your home, auto repossessions or tax debts, Chapter 13 can help give you some breathing room. 99% of all debtors who file Chapter 13, are able to keep their assets. This may also be the best option for joint husband/wife filings.

CONCLUSION

Lawyers working in bankruptcy law can help both debtors and creditors overcome obstacles to the repayment of debt. Their knowledge often extends beyond bankruptcy to include debt repayment and collection options that can avoid the need for a bankruptcy filing. Experienced bankruptcy attorneys have the education and expertise to help their clients get out from under frightening debt and emerge as productive citizens. If you have questions on filing for bankruptcy in Georgia for debt consolidation or to stop foreclosure on your home, please feel free to give us a call so that we may help you to get back on the path to financial freedom.

Remember: if you have ANY questions, please do not hesitate to call us for a FREE consultation.

Remember: if you have ANY questions, please do not hesitate to call us for a free consultation.