Bankruptcy FAQs

Chapter 7 bankruptcy involves liquidating your assets (turning property into cash) to repay your creditors. When the funds have been depleted, all remaining debts are discharged (eliminated).

Bankruptcy provides many benefits. Most importantly, the bankruptcy court can discharge (eliminate) qualifying debt, thereby releasing you from liability. The discharge can occur after the liquidation process under Chapter 7.

Additionally, bankruptcy triggers an automatic stay, which stops your creditors from continuing their collection efforts. They will not be able to garnish your wages, repossess your vehicle, foreclose your house, or deduct money from your bank account. They won’t even be permitted to contact you.

Under Georgia law, some property and income are exempt from Chapter 7 liquidation.

Those exemptions include:

• Homestead (up to $21,500 in value)
• Workers’ compensation
• IRAs and ERISA-qualified benefits
• Motor vehicles (up to $3,500 in value)
• Tools necessary for a particular trade
• Income from child support or alimony
• Veterans’ benefits
• Insurance proceeds
• Aid to disabled persons
• Up to $600 of property chosen by the individual

This is a pervasive and harmful myth. In truth, bankruptcy can rescue you from financial ruin. By allowing you to get many of your debts discharged, bankruptcy really does give you a second chance.

Our attorneys would be the first to tell you that bankruptcy is not right for everyone. Although filing for bankruptcy can help you get a fresh start, it can have a severe impact on your credit.

More specifically, bankruptcy will remain on your credit report for 7-10 years (depending on the chapter you file). This may affect your ability to open credit card accounts and obtain loans with reasonable interest rates. But, because several debts are discharged during bankruptcy, many filers immediately begin improving their credit after the bankruptcy process.

The most severe consequences people experience, however, are the result of filing without an attorney. Without qualified, professional support, you might file a chapter that isn’t right for your situation. You might lose more assets than necessary because you don’t take full advantage of exemption laws. You could file your petition with mistakes or inconsistencies that could lead to a petition denial. To minimize the negative consequences of bankruptcy, you must file with an experienced legal team by your side.

Ultimately, your top concern is if bankruptcy is the right decision for you and your family. Our Atlanta bankruptcy attorneys are here to evaluate your unique situation and help you make an informed decision about how to get relief from your debt.