BASIC BANKRUPTCY INFORMATION

DISCLAIMER

The information contained on this page is for information, only. It is not intended to be legal advice, nor should you make legal decisions based on this information. Please consult one of our attorneys to see how the law applies to your particular situation.

There are two kinds of bankruptcy cases which our firm handles. Click on the links for specific information about them.

• Chapter 13
• Chapter 7

What does it cost?

There are two different costs: the filing fee and the attorney fees.

• The filing fee for Chapter 7 is $209.00, for Chapter 13 $194.00. Not all of the fee has to be paid at once. The attorney may be able to set up an installment payment.
  

   

• The Attorney fee varies from case to case depending on how complicated the case is. IT DOES NOT COST ANYTHING TO MAKE AN APPOINTMENT AND TALK TO ONE OF OUR ATTORNEYS.
  

How will my credit be affected?

• A Chapter 7 stays on a person's credit record for 10 years. This does not mean that a person cannot get credit. It means that if the creditor gets a credit report the report will show that a Chapter 7 has been filed. After 10 years the Chapter 7 comes off of the credit report.

   

• A Chapter 13 in which a person pays back all creditors 100% stays on their credit report for 7 years from the date of filing, in most instances. If all creditors are not paid back 100%, the Chapter 13 stays on the credit record for 10 years.

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Do both husband and wife have to file?

• Not necessarily. If only one or two debts are in both parties name, it may be possible for only one to file.

   

• If one of the couple does not have any debt, that person will not have to file.

   

• To see for sure whether both will have to file, make an appointment to talk with one of our attorneys.

How much will my payments be?

• If you file a Chapter 7, you will continue to make your regular payments to the creditors you are going to keep.

   

• If you file a Chapter 13, your payments will depend on how much you owe, how much secured debt you have, how much unsecured debt you have and how much you make.

   

• To determine your payment in a Chapter 13 case make an appointment to come in and discuss your individual situation with one of our attorneys.

Do I have to owe a certain amout?

• No. There is no minimum amount of debt which a person must have.

   

• No matter how much or how little debt you have, if you cannot afford to make your monthly payments then you may benefit from filng a bankruptcy case.

What about my house payments?

• In either Chapter 13 or Chapter 7 most people continue to pay their house payment themselves.

   

• If you are behind on your house payments, the amount that you are behind can be caught up in a Chapter 13 plan, while you continue to make all of the payments which come due after the date of filing.

Will I lose any of my possessions?

• Most people in a bankruptcy case do not lose any property that they do not want to lose. This includes their house and their car.

• To determine if you would lose any property, make an appointment to come in and discuss your situation with one of our attorneys.

What about my co-signer?

• In a Chapter 13 a co-signer is protected if you pay the co-signed debt 100%. If you do not pay the co-signed debt 100%, then the court will give the creditor permission to collect from your co-signer.

   

• In a Chapter 7 the creditor will usually not try to collect from your co-signer if you agree to keep paying the debt.

   

• To determine if your co-signer would be affected, make an appointment to come in and discuss you situation with one of our attorneys.

What about my child support?

• You must continue making regular child support payments as they come due after you file your case.

   

• If you are behind on your child support you can catch it up through a Chapter 13 case.

   

• You cannot wipe out past due child support payments in any kind of bankruptcy case.

What about my criminal fines or restitution?

• Most of the time you will continue making your monthly payment on your criminal fine yourself.

   

• If you are on probation, you will have to continue making your monthly probation maintenance fee yourself.

   

• If you owe restitution you may be able to pay it back through a Chapter 13 plan.

   

• You cannot wipe out a criminal fine or restitution in any kind of bankruptcy case.

What about returned checks?

• Not all returned checks are bad checks which can lead to criminal prosecution.

   

• If the check is a "bad check" you can pay it through a Chapter 13 case. You cannot wipe it out in any kind of bankruptcy case.

   

• If the check is simply an insufficient funds check, you can wipe it out in either a Chapter 13 or Chapter 7 case.

   

• To determine whether you would be able to wipe out a returned check, you must make an appointment to come in and discuss your situation with one of our attorneys.

   

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What about taxes?

• All taxes can be paid through a Chapter 13 case.

   

• Some taxes that are over three years old can be wiped out in either a Chapter 13 or Chapter 7 case.

   

• Taxes that are less than 3 years old cannot be wiped out in any bankruptcy case.

   

• To determine if taxes which you owe can be wiped out or must be paid you must make an appointment to come in and talk with one of our attorneys.

   

• If you have not filed tax returns for any year it is important to do so as soon as possible to determine if you will have any tax liability for that year or years.

   

• Paying back taxes through a Chapter 13 plan stops all penalties and some kinds of interest.

What about future tax refunds?

• The taxing authorities cannot withhold your future tax refund and apply it to tax debt which you have listed in a Chapter 13 case.

   

• If a tax debt is wiped out in a bankruptcy case, the taxing authorities cannot collect it in any form in the future.

What about insurance?

• You must maintain insurance on any house or car which is being paid for in your Chapter 13 case.

   

• In a Chapter 13 case, the creditor who has a lien on your car may require you to have full coverage insurance, if your car is operational.

   

• In a Chapter 7 case you will need insurance only if you are going to keep the car or house.

   

• If you cancel the insurance on a car you must not drive the car. It is illegal in Georgia to drive a car without any insurance.

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What about credit in the future?

• A person in a Chapter 13 may not get more credit or make more debts without getting permission from the Court first. The Court wants people to take care of the debt they already have before getting more debt.

• A person in a Chapter 7 case can apply for credit any time after the case is filed. Whether they will be granted credit will depend upon each individaul creditor.

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Can I stop creditors from harassing me?

• When you file any sort of Bankruptcy case the law requires your creditors to stop trying to collect on the debts that you owe. The creditor may not repossess or foreclose on any of your property. The creditor may not call you on the telephone or send you bills. The creditor may not garnish your wages or seize your checking account or other property. The creditor must work with you through the Bankruptcy Court.

• If the creditor is already garnishing your pay or is attempting to repossess your car or foreclose on your house they must stop, immediately.
  

   

• Any attempt to collect on a debt after your case is filed may result in the creditor being in contempt of court.