Qualifying for a Chapter 7 Bankruptcy in Georgia
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Posted On :
Apr-12-2013
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Article Word Count :
534
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Georgia residents, who are considering filing a Chapter 7 bankruptcy action, should retain attorneys in Canton GA to assist them.
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Georgia residents, who are considering filing a Chapter 7 bankruptcy action, should retain attorneys in Canton GA to assist them. Specifically, these attorneys should be experienced Chapter 7 bankruptcy attorneys with a lengthy history of practicing bankruptcy law.
People Who Can File Chapter 7:
A Chapter 7 bankruptcy releases most of the debtors' unsecured debts, such as credit cards and medical bills. In order to file for Chapter 7, the debtors must receive a passing score on a "means test." The Chapter 7 bankruptcy attorneys will do the necessary calculations to determine whether or not the debtors are qualified to file a Chapter 7 bankruptcy.
Additionally, if the debtors' current monthly income is below their state's median income for a similar financial/family demographic, they will automatically be able file for a Chapter 7 bankruptcy and will not be required to take the means test. If the debtors do not qualify for a Chapter 7, their attorneys in Canton GA will be required to convert the action to a Chapter 13 bankruptcy.
Chapter 13 Bankruptcy Explained:
A Chapter 13 bankruptcy is a payback plan. The U.S. Bankruptcy Trustee contacts the creditors to negotiate an amount to settle each of the unsecured debts. The debtors are allowed to keep their house in a Chapter 13 bankruptcy, and many debtors decide to choose this option instead of a Chapter 7 because they want to stay in their homes.
Chapter 7 Exemptions:
If the debtors are at least 62 years of age, they may qualify for a homestead exemption. The same exemption may apply if they are disabled. Canton, Georgia's homestead exemption is $112.000. For example, if the debtors' home is worth $412,000, and they still are paying on a remaining mortgage balance of $312,000, they have $100,000 of home equity. The bankruptcy trustee cannot sell the debtors' home because their equity is under $112,000. However, if Canton, Georgia's homestead exemption is $62,000, the trustee could sell the debtors' home to pay off some of their debts.
The debtors may also exempt their automobiles, clothing, jewelry and other personal possessions. Household appliances, furniture and work tools are exempted also. Pensions and public benefits (social security or unemployment compensation) are exempt in a Chapter 7.
The Chapter 7 Process:
Once the Georgia Chapter 7 bankruptcy attorneys have collected the debtors' financial information and prepared their bankruptcy forms, the debtors will need to sign them. The forms are then filed with the U.S. Bankruptcy Court. The automatic stay (where the creditors may not contact the debtors for payment) immediately goes into effect.
The Meeting of Creditors is held in two to three months after filing. At this hearing, the debtors will meet with the bankruptcy trustee to go over their paperwork and answer questions. Secured creditors may be at this hearing to discuss the disposition of the secured property.
Chapter 7 Discharge:
In a month or two after the Meeting of Creditors, the debtors will receive a Chapter 7 Discharge. All the unsecured debts listed in their paperwork are completely wiped out. Debts, such as student loans and child support, will remain in effect.
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Article Source :
http://www.articleseen.com/Article_Qualifying for a Chapter 7 Bankruptcy in Georgia_260518.aspx
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Author Resource :
The author has an immense knowledge on attorneys in Canton GA. Know more about Chapter 7 bankruptcy attorneys related info in his website.
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Keywords :
attorneys in Canton GA, Chapter 7 bankruptcy attorneys,
Category :
Reference and Education
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Reference and Education
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