Court filing fees to file a Chapter 7 Bankruptcy usually run about $350. Additionally, many people work with bankruptcy petition preparers. These individuals usually charge negligible professional fees in addition to the filing fee. However, as the old saying goes, you get what you pay for. Bankruptcy petition preparers often have little or no experience in this area.

A Georgia bankruptcy lawyer, on the other hand, has considerable training and experience in this area. That expertise helps debtors make the most of their fresh starts. Otherwise, these debtors might end up in bankruptcy court again a few years down the road. Additionally, a Georgia bankruptcy lawyer can give you legal advice and represent you in court. At best, bankruptcy petition preparers can only fill out forms.

Automatic Stay

Many people file Chapter 7 bankruptcy because a moneylender threatens adverse action. As experienced Georgia Bankruptcy attorneys, we know that Bankruptcy’s Automatic Stay prohibits all creditor adverse actions, such as:

• Repossession
• Eviction (in most cases)
• Foreclosure
• Wage garnishment
• Harassing collection techniques
• Civil collections lawsuits

Debtors need not show any evidence of lender fraud, negligence, or other misconduct. Most bankruptcy debtors can take advantage of the Automatic Stay regardless of the facts of the case.

That being said, Section 362 of the Bankruptcy Code is a rather complex provision. For example, if there are prior dismissals on the debtor’s record, the Automatic Stay presumptively has only a limited effect.

A Georgia bankruptcy lawyer can overcome this presumption with a motion to impose the Automatic Stay. Unlike Chapter 7 bankruptcy lawyers, bankruptcy petition preparers cannot file legal motions and many do-it-yourself filers are unaware of this loophole. The Automatic Stay is one of the biggest advantages of filing bankruptcy. A lawyer maximizes the Stay, and by avoiding things like vehicle repossession, thus reduces the total cost of filing bankruptcy.

Asset Exemption

Chapter 7 might be the only way to stop adverse creditor actions. Chapter 7 might also be the only way to protect your key assets. That’s especially true since the Supreme Court has recently diluted some consumer protections in the Fair Debt Collection Practices Act. So, bankruptcy’s asset exemption is more important than ever. In a Chapter 7 bankruptcy, some of these exemptions include:

• House
• Motor vehicle
• Retirement account
• Personal property
• FSO (Family Support Obligation) payments, like alimony and child support
• Current wages
• Government benefits, like Social Security benefits

Once again, a Georgia bankruptcy lawyer reduces the cost of bankruptcy by protecting more of your assets. Motor vehicles are a good example. There is usually a difference between a car’s quick sale value and its fair market value. Schedule B must reflect the lower quick sale value, which only an attorney can accurately determine. The difference between the QSV and fair market value could be the difference between keeping your car and watching it being repossessed.

Debt Discharge and Georgia Bankruptcy Lawyers

This area is where a Georgia bankruptcy attorney can really reduce the cost of filing bankruptcy. Chapter 7 discharges most unsecured debts, such as credit cards and medical bills. But this discharge does not automatically apply to priority unsecured debts, such as student loans and back taxes.

Student loans are a good example. The 11th Circuit, which includes Georgia, only allows student loan discharge in bankruptcy if:

• The payments would force the debtor to live below the poverty line
• A current hardship is expected to last for most of the repayment term
• The debtor has made a good faith effort to repay the loan

This standard is very high and makes student loan discharge difficult. However, if a good Georgia bankruptcy attorney files a motion and vigorously pursues it, the debtor usually at least receives a partial discharge. That’s an outcome a bankruptcy petition preparer cannot possibly obtain.

Incidentally, “discharge” means the elimination of the legal requirement to repay the debt. If nonpayment has collateral consequences, such as withholding a transcript because of failure to pay student loans, a Georgia bankruptcy lawyer must deal with these consequences separately. Fortunately, Chapter 7 bankruptcy attorneys are good negotiators as well as good litigators. So, these stories often have happy endings.

The cost of filing bankruptcy is ultimately lower when you work with an experienced Georgia bankruptcy lawyer from Morgan & Morgan, Attorneys at Law P.C. Call us today for a free consultation.