BusinessBankruptcy in Atlanta - What You Need to Know Before You File

Bankruptcy in Atlanta – What You Need to Know Before You File

Bankruptcy in Atlanta is a major financial issue for many people. There are two types of bankruptcy that you can file for if you have debts that are too large for you to pay. These are Chapter 7 and Chapter 13 bankruptcy. In this article you’ll learn more about these types of bankruptcy and what you need to do before you file.

Chapter 7 bankruptcy is a fresh start

If you’re in debt and facing foreclosure, you can have a fresh start with a Chapter 7 bankruptcy. This type of bankruptcy enables you to discharge your unsecured debts, including credit cards and medical bills.

Before filing for bankruptcy, you should complete a pre-filing credit counseling course. This is typically offered online. You will learn about the legal aspects of filing and how to protect yourself. Once you file, a court-appointed trustee will help you liquidate your assets.

A Chapter 7 bankruptcy can also eliminate your unsecured debt, including credit cards and auto loans. However, not all debt can be discharged in this type of bankruptcy.

In order to determine if you qualify for a Chapter 7 bankruptcy, you will need to take a means test. The means test looks at your income, your expenses and your family size.

Chapter 13 bankruptcy is a debt consolidation plan

When you decide to file for bankruptcy, you are making a commitment to take action and get out of debt. This can be a very important step toward your financial future. It can help you eliminate your debt, restructure your debt, and save your property. Depending on your situation, you may qualify for Chapter 7 or Chapter 13.

If you have a large amount of unsecured debt, bankruptcy can provide you with a fresh financial start. You will be able to stop repossessions, wage garnishments, and lawsuits. Also, it can improve your credit score.

Bankruptcy allows you to eliminate many types of debts, such as credit card balances. In addition, you are able to keep your home and car. But, it is important to understand that bankruptcy stays on your credit report for seven years.

Redeeming your car in bankruptcy

If you are thinking about filing bankruptcy in Atlanta, there are a few options available for you to keep your car. One of the most common is car redemption, a process that lets you buy your car back from your lender in one lump sum.

Before you can get started, you will need to file a motion with the court. The motion will ask the judge to approve your car redemption.

Once the judge approves the motion, you will need to send copies of the motion and your car valuation printout to your lender. You will also need to pay repossession and storage fees. Lastly, you will need to apply for a new loan with a new lender.

In general, a car creditor will only be able to recover its costs if it can prove that it received a fair market value for the vehicle. Some lenders are willing to work with you to lower the price of the vehicle. However, you will need to have an attorney help you with the paperwork and negotiations.

Filing fees

If you have fallen behind on your payments, or have been recently hit with creditor harassment, filing for bankruptcy might be the way to end the stress. While it doesn’t mean you’re completely forgiven of your debt, it can provide a fresh start to your finances.

A bankruptcy court requires that you fill out a formal application before your case can proceed. In addition to this, you will have to disclose all of your assets, including income, in order to be eligible. You will also be required to take a credit counseling course.

The application is free and can be accessed online. Depending on your location, you might need to complete local forms.

There are also fee waivers available for some people. To qualify, you must demonstrate that your income is less than 150% of the poverty level. Additionally, you may have to pay a fee for the credit counseling course.

Gathering financial documents before filing

If you are preparing to file for bankruptcy, you will need to gather financial documents. This includes items such as pay stubs and a credit report. You will also need to answer questions about your debts, property and income.

When you file for bankruptcy, you may be eligible for a fee waiver. The court must approve the request. In some cases, you can waive the filing fee if you are earning less than 150% of the poverty level.

Before filing for bankruptcy, you should collect all of your tax returns and pay stubs for the past six months. If you are self-employed, you should also gather profit and loss statements for the past two years.

You will also need to get copies of your Social Security card and your recent bank statements. Your income and expenses will be used by the trustee to determine whether you qualify for a bankruptcy.