Coronavirus has affected our lives in many ways. For example, about 90 percent of people say that COVID-19 has created additional financial stress in their lives. What makes this survey really alarming is that most people in Georgia were already living hand to mouth. Any additional stress could be devastating.

Most people file bankruptcy because of a financial storm, and coronavirus certainly qualifies as such. As for coronavirus financial stress, your family deserves a fresh start after what they have been through. And, bankruptcy provides that fresh start.

The cost of bankruptcy, and specifically the cost of a Georgia bankruptcy lawyer, varies significantly. A partnership with an attorney is usually the most expensive way to file bankruptcy. But as outlined below, this additional investment almost always pays big dividends.

Benefits of Bankruptcy

Coronavirus is an equal opportunity financial hardship. The lockdowns and economic downturns have been hard on everybody, including many creditors all over Georgia. So, when mortgage deferrals, eviction moratoriums, and other temporary relief programs end, moneylenders will expect payment. And, they will not be very patient.

Temporary relief is available for people who have documented COVID-19-related economic hardships. But bankruptcy’s Automatic Stay does the same thing, and there is no additional paperwork requirement. As well-practiced Georgia bankruptcy lawyers, we know that Section 362 of the Bankruptcy Code halts all forms of creditor adverse action. That includes everything from home foreclosures all the way down to past-due notices.

The Automatic Stay lasts up to five years. This protected repayment period gives debtors time to erase secured debt arrearage on their own terms. And, moneylenders must wait patiently for these repayments, just like everybody else.

When the protected repayment period ends, the judge discharges most credit cards, medical bills, and other unsecured debts. Once these bills are eliminated, think about what your family can do with that extra money.

Filing Methods

To reduce the cost of filing bankruptcy, many debtors opt for do-it-yourself filings or a relationship with a bankruptcy petition preparer. These stories normally have very unhappy endings.

Some people think filing bankruptcy is a bit like filing a tax return. DIY tax filings are often a good idea for people who only have W-2 wage income. If you are self-employed or have other sources of income, like investment income, a DIY tax filing is probably a bad idea. 

But bankruptcy is like an enormously complex LLC or other corporate tax return. A petition must include dozens of schedules. Filing the wrong one, or including the wrong information, could lead to bankruptcy fraud charges. And, unlike IRS forms, there are no instructions and there is no one available to help.

Non-lawyer bankruptcy petition preparers are a step up from DIY filing. But it’s a baby step. Anyone can be a bankruptcy petition preparer. There are no special educational, experiential, or ethical requirements. As a result, most bankruptcy petition preparers are basically DIY filers with WordPress sites.

Even at their best, these individuals can only fill out forms. They cannot advise debtors which schedules to file. They certainly cannot advise them about the information they should include or exclude. 

Perhaps worst of all, bankruptcy petition preparers definitely cannot represent you in court. Adversarial motions are quite common, especially if the debtor has any nonexempt property, like a savings account, or any priority unsecured debts, like student loans. If the trustee or a creditor files such motions, bankruptcy petition preparers can only sit and watch.

With all this in mind, working with a qualified Georgia bankruptcy attorney can be a prudent move.

Why Work with a Georgia Bankruptcy Lawyer?

A bankruptcy attorney does everything that DIY files and petition preparers can do, except lawyers do these things better. And, Georgia bankruptcy lawyers offer additional services. As a result, the extra bankruptcy cost is more than worth it.

As mentioned, the schedules are quite complicated, and they must be filled out the correct way. Schedules I and J, the monthly income and expense schedules, are a good example. Sometimes, unless these schedules show a negative monthly cash flow, the trustee will ask unwanted questions. Other times, the schedules must show a substantial monthly surplus. Only a Georgia bankruptcy lawyer knows when to declare what.

If an adversarial motion is filed, an attorney is more than a good litigator who speaks for you in court. A Georgia bankruptcy lawyer is also a good negotiator. As a result, attorneys usually resolve these disputes out of court, and on favorable terms. These negotiation skills also extend to things like renegotiating repayment terms with moneylenders.

Engage an Astute Georgia Bankruptcy Attorney When Filing Bankruptcy

The cost of filing bankruptcy varies, depending on several factors. For a free consultation with an experienced Georgia bankruptcy lawyer, contact Morgan & Morgan, Attorneys at Law, P.C. at (706) 843-2905. Convenient payment plans are available.

Christopher Ross Morgan

Christopher Ross Morgan

Christopher Ross Morgan focuses on bankruptcy cases, specifically Chapter 7 and Chapter 13 cases. Christopher also takes on Disability and Workers’ Compensation cases. As one of the most accomplished Chapter 7 and Chapter 13 attorneys in Athens, Georgia, he has fought cases through jury trials and argued cases in front of the U.S. District Court, Northern and Middle District of Georgia.