GA LAW GROUP offers Bankruptcy for our clients in need of help.
CHAPTER 7
Liquidation Bankruptcy or “Fresh Start” Bankruptcy. Under this Bankruptcy Code you may protect exempt assets but most all other debt is removed. You may keep your home, mortgages on the property will remain. It is usually a 4 to 6 month process. It can delay Property Sale Dates but not indefinitely.
Court filing fees and credit counseling required.
The case is administered by a Bankruptcy Trustee with a required trustee supervised hearing with creditors that occurs roughly a month after filing. Debts that likely will not be removed are Student Loans, Divorce payments and child support.
Can only be filed once every 8 years. Spouses can file separately.
In order to qualify for Chapter 7 client must pass Bankruptcy Court’s Means Test.
Those who don’t qualify based on income may qualify for Chapter 13 or 11.
CHAPTER 13
“Reorganization” bankruptcy. Commonly used to stop foreclosure, stop IRS collection or to consolidate debts into a single monthly affordable payment.
Repayment plan for individuals with regular income and unsecured debt less than $336,900 and secured debt less than $1,010,650.
Court filing fees and credit counseling required.
Case is administered by a Bankruptcy Trustee with a required trustee supervised hearing with creditors that occurs roughly a month after filing.
Typically a 5 year – 60 months payment plan is put in place until discharge. Non-Dischargeable debts can be put into a payment plan – Arrears from non-payment of mortgages for example.
No limit of amount of times you can file Chapter 13, though most Courts discourage repetitive filings within a short period of time
Must meet monthly income requirements to qualify for Chapter 13. Sources of income can include: W2 or self employment, social security income, pensions, among others.
CHAPTER 11
Individual, Sole Proprietorship or Corporate Reorganization Bankruptcy generally above $1.1 million in secured debt. There is no time limit on the repayment plan. It involves much more detailed legal, accounting, and trustee work therefore can be a more expensive options for clients.
Call for more details. 818 884 4454
