Advantages of filing a personal bankruptcy

Lawrenceville, GA bankruptcy lawyers at Mills & Hoopes, LLC can help you determine when bankruptcy is the best approach for you. The most notable and immediate advantages of filing bankruptcy result from an automatic stay—a court order that stops creditor actions such as:

• Harassing creditor calls
• Collection letters
• Wage garnishment
• Foreclosure
• Lawsuits

• Eviction
• Contempt actions for child support payment default
• Utility disconnection
• Loss of unemployment benefits

Chapter 7

In Chapter 7 or liquidation bankruptcy, a court-appointed trustee sells your non-exempt assets and uses the proceeds to pay creditors. Your residence, personal items, and vehicle are generally exempt from sale. Once the bankruptcy is complete, your debts are discharged. You get a fresh start and are once again in control of your finances.

The 2005 changes in bankruptcy law now make it more difficult for individuals to file Chapter 7 based on a required means test. Under the means test, most people with higher than the median income of Georgia residents are not eligible for Chapter 7.

Chapter 7 benefits people with few assets who want to get rid of unsecured debt such as credit card, medical, and utility bills.

Chapter 13

Chapter 13 bankruptcy may only be filed by individuals and sole proprietors, and not by partnerships and corporations. Under Chapter 13, also called wage earners reorganization, debts are consolidated and paid in monthly installments over a three or five year period to a court-appointed trustee. The individual must have a stable income source, a repayment plan approved by the bankruptcy trustee, and enough disposable income (the amount left after reasonable living expenses) to cover debt. The trustee uses the money to pay off all or some of your debts.

Chapter 13 benefits people by not putting their possessions at risk, and by allowing debtors to pay off debts at lower interest rates. A strong bankruptcy lawyer can also negotiate to get late fees and other charges waived.

Consult a Georgia bankruptcy lawyer

Find out if bankruptcy is right for you. Arrange a consultation to discuss your bankruptcy options. Call 770-513-8111 today or contact Mills & Hoopes, LLC online.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.