Although the law changed in 2005, most people still qualify to file for Chapter 7 bankruptcy protection, even if they earn above the median income.
Credit Card Companies and other credit providers, who charge high interest rates and penalties, have left many hardworking Georgia people unable to pay even the minimum interest rates on their debts. Often times Credit Providers hire abusive collection agencies to harass and degrade people doing their best to pay their debts. Divorce, job loss, sickness, and other emergencies often leave people unable to maintain payments of these high interest rate loans. In addition, other credit providers take advantage people with poor credit ratings, by selling cars at more than their fair market value at high interest rates.
The United States Government has provided assistance to consumers who are unable to continue on the treadmill of debt in the form of Bankruptcy Laws. These laws are designed to assist consumers in getting a fresh start and to stop the abuse and harassment of creditors. There are two main types of Bankruptcy, known as Chapter 7 and Chapter 13, designed to assist consumers with creditor problems.
Chapter 7 bankruptcy is designed to provide a fresh start to a debtor by eliminating all debt. You make keep your property which is secured by a debt by reaffirming that debt. You must, however, be up to date on all secured debt, or risk losing this property. All other unsecured debt, such as credit cards, are discharged. You may not discharge debts that are deemed a priority, such as child support debts and taxes. You are allowed to keep a certain amount of property deemed “exempt” from the bankruptcy proceeding. If you have considerable equity in your home or other significant assets, you may lose this property, or choose to file a Chapter 13 Bankruptcy.
Chapter 13 bankruptcy allows a debtor to repay part or all of their debt based on their ability to pay. If you are behind on car or home payments, you may repay this arrearage through your Chapter 13 plan. You may even keep your assets in a Chapter 13 bankruptcy provided that all creditors are treated at least as well as they would be in a Chapter 7 Bankruptcy.
Our offices are located in Cartersville, Georgia, and Rome, Georgia which is approximately twenty (20) miles north of Atlanta.