FAQ
FAQ
Frequently Asked Questions
Morgan & Morgan handles bankruptcy cases in the Middle and Northern Districts of Georgia. No problem is too big or too small for us to help.
Morgan & Morgan has over 30 years experience handling bankruptcy cases. We offer a free consultation to fully review your financial situation and advise you of all debt relief options. We help you get the relief you deserve.
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Frequently Asked Questions About Bankruptcy
Morgan & Morgan handles bankruptcy cases in the Middle and Northern Districts of Georgia. In most cases, a bankruptcy must be filed in the District in which you live.
MIDDLE DISTRICT OF GEORGIA
The Middle District covers a large area across the State from Southwest Georgia to Northeast Georgia. The cities and counties in our area that fall within the Middle District include the following:
COUNTY CITIES
Clarke Athens, Winterville
Madison Danielsville, Hull, Colbert, Comer
Walton Monroe, Loganville, Social Circle
Oglethorpe Lexington, Crawford
Oconee Watkinsville, Bogart
Greene Greensboro, Union Point
Morgan Madison, Rutledge, Bostwick
Putnam Eatonton
Franklin Royston, Franklin Springs, Bowman, Carnesville, Lavonia
Hart Hartwell, Canon
Cases filed in the Middle District from the Counties above are filed with the Clerk of Court in Macon. However, any meetings and hearings are usually held in Athens.
NORTHERN DISTRICT OF GEORGIA
The Northern District covers a large area across North Georgia. The cities and counties in our area that fall within the Northern District include the following:
COUNTY CITIES
Barrow Winder, Statham
Jackson Jefferson, Commerce
Banks Maysville
Stephens Toccoa
Hall Gainesville, Flowery Branch
Gwinnett Lawrenceville, Snellville
Cases filed in the Northern District from the Counties above are filed with the Clerk of Court in Atlanta. However, meetings and hearings for cases in which the Debtor resides in Barrow, Jackson, Banks, Stephens, Hall, and several other counties are held in Gainesville.
Morgan & Morgan has over 30 years experience handling bankruptcy cases in both the Middle and Northern Districts of Georgia. We offer a free consultation to fully review your financial situation and advise you of all debt relief options. Let us help you get the relief you deserve.
In most bankruptcy cases, shortly after the final discharge order is entered by the court, the case is closed. However, this is not always the case. In some Chapter 7 bankruptcy cases, the case may remain open for months, or even years, after the discharge has been granted. This can be true when the Trustee is still trying to sell property or recover funds that are property of the bankruptcy estate and can be used to pay creditors, or when the court is still considering disputes over whether a particular debt is eligible for discharge.
Occasionally, there is a need to petition the court to reopen a bankruptcy case. This can be true when there is a dispute over whether a debt was discharged. Another example is when a creditor is trying to collect a discharged debt, and the debtor needs the court to take steps to enforce the discharge order. It is also sometimes necessary to reopen in order to file an amendment, or file a reaffirmation agreement.
Reopening the case for these purposes does not change the discharge date, and does not normally give creditors a new chance to file objections.
When it is necessary to reopen a case, the debtor’s attorney will file a motion with the court. It is within the court’s discretion to reopen the case, or refuse to do so. If you feel your case should be reopened, be sure to fully discuss the matter with your attorney. He/she should fully advise you of the pros and cons, and the cost of filing the motion and taking whatever other steps are needed.
Complaints by consumers about “debt settlement” and “debt management” companies have skyrocketed in recent years. Many of these companies market themselves as a viable alternative to bankruptcy. Often, they propose to set up a debt settlement payment plan. Under the plan, the consumer makes a payment each payday. The company proposes to hold the funds until a settlement fund is accumulated, and then settle out the consumer’s debts for pennies on the dollar.
Sounds great, right? Unfortunately, most of these companies manage to keep most of the funds for themselves. The consumer’s debts continue to fall further into default, and eventually lawsuits and harassment cause the plan to fail. The debt settlement company is the only one who profits.
The State of Georgia legislature recognized that this practice does not help, but only hurts those in need of relief. It passed a law which makes most debt settlement plans illegal. If you feel you have been victimized by one of these companies, call Morgan & Morgan for a consultation. You may be entitled to recover the funds you paid into the plan, as well as damages and attorney fees.
Morgan & Morgan is here to help.
Most obligations incurred in connection with a divorce settlement cannot be discharged in a Chapter 7 bankruptcy. However, that is not always true in Chapter 13. If a spouse takes over a joint debt as part of an alimony or support obligation, the agreement to pay the debt cannot be discharged. However, if the debt was assumed as part of a simple division of property or debts, a successful Chapter 13 plan can erase the obligation to the lender, AND the obligation to the ex-spouse that was created by the divorce settlement documents.
If an objection to dischargeability of a debt incurred as part of a divorce settlement agreement is filed in a Chapter 13 case, the bankruptcy court will look at the language of the agreement, and the facts and circumstances surrounding the marriage and separation, to determine whether the agreement to assume the debt was in the nature of alimony and support. If so, the debt to the ex-spouse will not be discharged, and the ex-spouse will be free to enforce the agreement in the divorce court. If, however, the agreement is found to be a division of debts or property, the ex-spouse will be limited to filing a proof of claim in the Chapter 13 case and hoping to recoup some of his/her losses through disbursements by the Chapter 13 Trustee.
If you, or your credit standing, are being affected by an ex-spouse’s bankruptcy filing, it is important to seek advice from an Athens bankruptcy attorney right away. There are strict deadlines for filing objections.
In most cases, filing a Chapter 13 bankruptcy case will allow you to recover possession of a vehicle that has been repossessed. Because the buyer retains a right to redeem the vehicle after repossession, he/she still has an ownership interest in it. Therefore the courts have held that it is part of the bankruptcy estate and must be returned to the buyer.
Once the vehicle is resold by the lender, however, it is almost certainly too late. If your vehicle has been repossessed, you must act quickly. Contact an experienced bankruptcy attorney. Make sure that he/she is prepared to file a case quickly. A good bankruptcy attorney knows that time is of the essence in this situation, and will get a case filed right away.
Of course, recovering possession of the vehicle is only the first step. You must propose a feasible plan to pay the debt. Your attorney should fully evaluate your finances and develop a plan that you can live with. In some cases, you will only have to pay back the value of the vehicle rather than the full debt. In almost all cases, the interest rate will be significantly reduced.
So, if your vehicle has been repossessed, don’t give up. Get advice from a highly qualified bankruptcy attorney right away.
Members of our armed forces, including Reserves and National Guardsmen, sacrifice in many ways, including financially, while on active duty. Congress has recognized these sacrifices, and enacted special protections against home foreclosures and high interest loans for those on active duty.
HOME FORECLOSURE PROTECTION: The Servicemembers Civil Relief Act (SCRA) prohibits the foreclosure of a servicemember’s property during the period of active duty, and for nine months thereafter, without a court order. This only applies, however, if the mortgage was taken out prior to the commencement of active duty. In states like Georgia, which normally allows quick foreclosure without any court action, this is significant protection.
INTEREST RATE PROTECTION: During the period of active duty, and for one year thereafter, lenders must lower the servicemember’s interest rate on any loan obtained before the active duty period began. The maximum rate, including late charges and other fees, is 6 percent per annum.
HOWEVER, the interest rate reduction must be requested in writing. The rate reduction applies to individual loans as well as joint loans. The rate reduction can be requested during the active service and for 180 days after the termination of the servicemember’s active duty orders. If interest over the allowed maximum was charged, the lender must retroactively credit the account.
With over 30 years experience in consumer law, Morgan & Morgan of Athens, Georgia is always ready to help servicemembers with debt problems or consumer claims. Call for a free consultation. 1-800-924-7438 or (706)752-7089.
Not always. If a debt is less than seven years old, paying it could improve your credit score, IF it is showing on your credit report. How much depends on how old the debt is.
If the debt is older than seven years, by law it should have already come off your credit report. The credit rating agencies should not be considering it in assigning your score, so repaying it would likely have no effect on your score.
If the debt is less than seven years old, but is not showing up on your credit report, paying it off will not help your score, AND COULD EVEN HURT IT. This could happen if the creditor reports the payment, since your credit report would then show a debt that was formerly delinquent.
So, if you are thinking of paying off old debt, it is important to prioritize:
FIRST PRIORITY: Tax debt. Tax debts to federal, state and local governments accrue penalties and interest at an astounding rate. And, the government has multiple ways of collecting the debt that are not available to general creditors, such as seizing your tax refunds or government benefits, levying on your wages, and seizing your property.
SECOND PRIORITY: Child support or alimony obligations, and any other obligations you incurred as part of a divorce settlement. These debts are not dischargeable in bankruptcy, and failure to pay can even land you in jail.
THIRD PRIORITY: Any creditor that has sued you and obtained a judgment. A judgment will normally constitute a lien against your property, and may give the creditor the right to garnish your wages or bank account.
FOURTH PRIORITY: Any debt upon which you have been served court papers, even if a judgment has not been entered. If you have been served, a judgment is likely in the near future.
FIFTH PRIORITY: Debt that has been handed over to a law firm for collection, especially if it is a local law firm. A collection lawsuit is much more likely to be filed by a law firm than a general collection agency.
SIXTH PRIORITY: Other debts that are showing up on your credit report. Pay the newer debts first, as these affect your credit score more than older debts.
SEVENTH PRIORITY: Other debts that are not showing up on your credit report.
If it is not possible for you to deal with your debts in this way, it may be time to look at your bankruptcy options. STEER CLEAR OF THE DEBT MANAGEMENT AND DEBT SETTLEMENT FIRMS THAT YOU SEE ADVERTISING EVERYWHERE. The statistics are clear that these services rarely solve debt problems. More often, they are the only ones who get paid, leaving you further in debt and further behind.
If you are considering bankruptcy, it is important to have a thorough consultation with an experienced bankruptcy attorney. You should leave that consultation with a good understanding of your options. Once you know your options, you can make an informed decision about what should be done. Never let an attorney or anyone else pressure you into filing a bankruptcy, or filing a particular type of bankruptcy. Get the facts first. Make sure you know the pros and cons of each type of consumer bankruptcy case.
Read full article to learn more about:
WHAT CAN I EXPECT AT MY INITIAL CONSULTATION?
DO I HAVE TO HAVE ALL MY FINANCIAL RECORDS?
WHAT TYPES OF BANKRUPTCY ARE AVAILABLE TO ME?
Our advice for cosigning a loan for a family member or friend is simple: DON’T DO IT! But if you do, understand the consequences if your friend or loved one can’t, or won’t, pay.
Cosigning is common. We see people every day who have cosigned a debt and been left with a liability they simply can’t pay. Many people think their liability is for only one-half of the debt—not so. If you cosign a debt and the borrower doesn’t pay, in most every case you will be responsible for the entire debt. And, the lender does not have to try to collect from the borrower. It can look to you even if it might be possible for it to collect from the borrower. Also, the lender usually does not have to repossess any collateral that secures the loan. If the lender feels it can easily collect from you, it will simply ignore the borrower and demand payment from you.
Generally, you must file a bankruptcy case in the District where you have lived for the biggest part of the last 180 days. So, in most cases, you must wait until you have lived in the new District for 91 days. However, filing in the wrong district may, on rare occasions, be the only option. This could be true if a foreclosure was imminent, for example.
If the case is filed in the wrong district, the debtor is still entitled to all of the protections of the bankruptcy code. Some Courts will require that the case be removed to the proper district, but others will allow the case to proceed if there are no creditor objections.
If you are considering a bankruptcy, it is best to get advice from a bankruptcy lawyer as early as possible, even if you may have to wait to file. A good attorney will review your situation and discuss all your options. If you will need to wait to file, a good attorney will advise you on dealing with your creditors in the meantime. It may be advantageous to continue paying certain creditors. It may also be important to stop paying certain creditors, even if you don’t want to discharge that particular debt. Always get good advice early.
Making the decision to file a bankruptcy case is not easy. It is important to look at all of your options, and understand both the benefits and negative effects of filing. These are some of the questions that must be considered:
(1) How badly do I need relief?
(2) Do I qualify for bankruptcy relief?
(3) Will filing a bankruptcy case really help?
(4) Will I lose my property?
(5) Can I afford the cost of filing a bankruptcy case?
Before deciding to file for bankruptcy, you must understand what bankruptcy will and will not do for you. Bankruptcy won’t solve every problem or get rid of every debt. If it is clear that you need bankruptcy relief, the next step is to determine what type of bankruptcy to file. Items to consider include:
TYPES OF DEBTS
CHAPTER 7 v. CHAPTER 13 BANKRUPTCY
In the United States collection agents are limited in the methods they can use to collect consumer debts by the Fair Debt Collection Practices Act (FDCPA). Consumer debts include credit card debt, auto loans, mortgage payments, medical bills and other family and household expenses not used for a business. If you are dealing with a debt collector or have any questions call your Morgan & Morgan for a free consultation today.
Georgia has a non-judicial foreclosure process. This allows a mortgage holder to foreclose much more quickly and simply than in many other states. The mortgage holder must run a notice in the official legal organ (newspaper) for the county where the property is located. The notice is run for four (4) consecutive weeks. On the first Tuesday of the following month, the property is sold at a foreclosure sale on the steps of the county courthouse.
When you file a Chapter 7 bankruptcy, any assets that you own, including funds in your bank account, become property of the bankruptcy estate. However, each Chapter 7 debtor is allowed to exempt certain property so as to protect it from being used to pay creditors. In Georgia, the exemption normally used to protect funds in a bank account is found in O.C.G.A Section 44-13-100(a)(6). It allows you to exempt up to $5600 in any assets. There are other exemptions that are used to protect the equity in your home, your household goods, an automobile, etc.
At Morgan & Morgan, when we are considering a case under Chapter 7, we carefully review your assets and work to maximize your exemptions. We work hard to insure that you get the fresh start you deserve.
Service members who receive a re-enlistment bonus or incentive pay and then leave the service before their re-enlistment period is completed can be faced with a large repayment obligation. Can this debt be discharged in bankruptcy?
In most cases, the answer is no. However, two exceptions apply.
Many people on a fixed income from Social Security end up with judgments against them due to old debts such as credit cards and medical bills. Normally, when a creditor obtains a judgment, they can then take steps to collect such as garnishment of wages or bank accounts, or seizure (also known as levy) of property. Social Security benefits, however, have special protections under the law.
When a bank or credit union receives a garnishment notice, it must review the history of the account being garnished to determine if a benefit payment was deposited into the account during the previous two months. Within two business days of receiving the garnishment notice, the financial institution must notify you if the funds are protected from garnishment. If the funds are identified as Social Security benefits, the bank cannot freeze the funds. You must be given “full and customary access” to the funds. And, the bank cannot collect a garnishment fee from the protected funds.
Of course, even if the judgment creditor cannot garnish your bank account, it may take other steps to collect, including seizure of property. And, most judgments act as a lien against your home, preventing you from selling or borrowing money against the property without paying off the judgment. If you are served with a lawsuit, it is critical that you get good legal advice immediately! Ignoring the lawsuit is never a good idea.
While bankruptcy will not solve every mortgage problem, in many cases foreclosures can be stopped and mortgages reinstated through the use of a Chapter 13 plan.
A Chapter 13 bankruptcy case allows an individual or married couple with regular income to deal with their debts by making regular payments to a Chapter 13 Trustee. The payments are made over a period of 3 to 5 years. The plan can cure an arrearage, or overdue balance, on a home mortgage over a 60 month term. A Chapter 13 bankruptcy filing can also deal with many other short-term debts such as credit cards, car loans, and medical bills. This can free up funds so that future mortgage payments can be made in a timely manner.
In addition, in many jurisdictions a Chapter 13 plan can remove or “strip off” a second or third mortgage on a house. In order to remove the second or third mortgages, the property value must be less than the total amount owed for the first mortgage. Once the lien is stripped off, the second mortgage can often be paid little or nothing through the plan. The remaining balance on the second or third mortgage is completely discharged at the conclusion of the plan.
Another huge advantage of Chapter 13 is that the case can be filed without a big upfront expense. With a Chapter 13 bankruptcy case, the homeowner’s attorney fees are included in the plan. The attorney fees are then paid during the course of the 3 to five year plan. In fact, a Chapter 13 bankruptcy case can be started for as little as $125 ($75 partial court costs and $50 credit counseling).
Section 523 of the U.S. Bankruptcy Code governs the dischargeability of taxes. Generally, taxes on income owed to the IRS or a state are not dischargeable in bankruptcy unless they are owed for a taxable year for which a return was due more than three years before the filing of the bankruptcy case, and certain other requirements are met. For example, the return for the 2009 tax year would normally have been due on April 15, 2010. Taxes for that year would not be dischargeable in a bankruptcy case unless the case was filed after April 15, 2013.
Often, some of the tax obligation is dischargeable, but the more recent taxes are not. In that case, the dischargeable portion can be wiped out in a bankruptcy, thereby substantially reducing the total obligation.
Even if your income taxes are not dischargeable in a Chapter 7 bankruptcy, you may be able to deal with them through a Chapter 13 plan. In many Chapter 13 cases, we are able to set up a plan to repay the taxes, without future interest, while discharging other unsecured debts like credit cards and medical bills.
A seriously injured worker can accumulate significant debt while out of work. Even if the Employer pays the required workers compensation benefits, the amount is often far less than the worker was earning prior to the injury. It is sometimes necessary to consider a bankruptcy case in order to protect any settlement amount from claims by creditors. Careful consideration of the client’s financial situation and the applicable bankruptcy law is critical in this situation.
If the injured worker has resided in Georgia for more than two years, it is likely that a bankruptcy case can be used to get debt relief and protect a workers compensation settlement. The Georgia bankruptcy exemptions are found in Section 44-13-100 of the Georgia Code. There is an exemption for payment on account of personal injury of up to $10,000. There is also an exemption for payment in compensation for loss of future earnings to the extent reasonably necessary for the support of the debtor and his/her dependents. So, in most cases the combination of these exemptions will fully protect a workers compensation settlement in a bankruptcy case.
If the worker has not resided in Georgia for more than two years, he/she may be required to use another State’s exemption code, which could be less generous in protecting settlement funds.
In either case, it is critical that the client get personal and specific advice from a bankruptcy specialist before filing a case.
Section 523 of the U.S. Bankruptcy Code governs the dischargeability of taxes. Generally, taxes on income owed to a “governmental unit” are not dischargeable in bankruptcy unless they are owed for a taxable year for which a return was due more than three years before the filing of the bankruptcy case, and certain other requirements are met.
Often, some of the tax obligation is dischargeable, but the more recent taxes are not. In that case, the dischargeable portion can be wiped out in a bankruptcy, thereby substantially reducing the total obligation.
However, even if your income taxes are not dischargeable in a Chapter 7 bankruptcy, you may be able to deal with them through a Chapter 13 plan. In many Chapter 13 cases, we are able to set up a plan to repay the taxes, while discharging other unsecured debts like credit cards and medical bills.
When a homeowner falls behind on their mortgage payments, the lending back will repossess the property. Typically, the bank will begin a foreclosure after 3 or 4 missed payments, but they can start the process after missing just 1 payment.
After the bank notifies you, they are required to run an advertisement in the local paper for 4 consecutive weeks. On the first Tuesday of the following month, the house will be auctioned at the steps of the courthouse.
All of your debts, payments, credit card accounts and other financial history are used to compute your FICO credit score. All of the credit agencies calculate a score between 300 (extremely poor creditworthiness) and 850 (perfect credit). The average score is about 700. Your credit score is used by creditors to make a decision on applications for car loans, mortgages, credit cards, and other purchases.
If credit is granted, your score is often used to determine the interest rate on the debt.
Chapter 7 Bankruptcy
When a bankruptcy case is filed, with few exceptions an “automatic stay” goes into effect. The stay prevents creditors, including mortgage lenders, from taking any action to collect a debt. If a foreclosure is pending, it must be stopped. If you file a Chapter 7 bankruptcy, however, the foreclosure may only be stopped temporarily. The lender will likely file a motion for relief from the stay. Such motions are routinely granted by the Courts. This will allow the lender to start the foreclosure process again.
Chapter 7 is sometimes called “straight bankruptcy”. Under Chapter 7, the Court will discharge (wipe out) many of your debts. Credit card debt, medical bills, and unsecured loans are typically discharged. Debts that have collateral, such as a car loan or a home mortgage, must be reaffirmed in order to protect the collateral. A reaffirmation is an agreement that the debt will not be discharged. Some debts, such as taxes, student loans, and divorce or child support obligations cannot be discharged in Chapter 7. Chapter 7 may be a good choice if you have unsecured debt that you cannot pay and have few secured debts. However, many factors must be considered before deciding whether bankruptcy is necessary and, if so, what type of case to file. To learn more about Chapter 7, click HERE.
Chapter 13 Bankruptcy
It is usually possible to refile under Chapter 13 after a case has been dismissed. However, you must be able to show that you have sufficient regular income to make the new plan feasible. If a car or other collateral has been repossessed, it can usually be recovered, provided that it hasn’t been sold to a third party and the new plan provides for payment of the debt.
If you are in a Chapter 13 plan and are unable to keep the payments current, the Trustee, or one of your creditors, may file a motion to dismiss the case. If this happens, you must move quickly to correct the situation.
In some districts, you must file a written response to the motion, or it will simply be granted without a hearing. In other districts, the motion is always set down for a hearing. If a response is required, make sure that your attorney files one promptly. If not, you may want to consider filing a response yourself.
When you file any type of bankruptcy case, you must list all of your debts and all of your assets. In Chapter 13, however, you can often propose a plan that treats debts differently depending on the type of debt.
For example, the plan may classify a cosigned debt to be paid with interest, while paying little or nothing to other unsecured creditors. Long-term debts, such as a home mortgage, can also be treated differently than other secured debts. The plan may provide that any arrearage (back payments) be caught up through the plan, but the future payments be made by you, rather than through the plan.
What cannot be done in a Chapter 13 plan is to treat similar types of debts differently. For example, you would not be allowed to pay one particular credit card debt in full, while paying little or nothing to other credit card debts.
Disability
The Social Security Administration uses a “sequential evaluation” process in evaluating a disability claim. The first step in the process is to determine if the claimant is engaged in “substantial gainful activity”. If so, the claim is denied and the medical issues are not even reviewed. So, unless an individual is not working, or is working very little, it is rarely helpful to move forward with a claim for benefits. In most cases, it is better to continue to work as long as you can, and file your claim when you can no longer continue. If it is inevitable that a claim will be necessary, focus on developing the medical evidence that will be necessary to prove the claim once it is filed. See your doctors, ask for their opinion as to your work capabilities, tell them that you will be filing a claim soon, and ask for their help in documenting your medical problems as thoroughly as possible. This may help you get an early favorable decision on your claim and avoid a lengthy appeal process.
Once you have reached the point of filing a claim, help from an experienced attorney can be invaluable. At Morgan & Morgan, we work with your doctors to insure the agency gets a complete picture of your impairments. We handle any necessary appeals. If a hearing is necessary, we present your case to the judge through documents and witness testimony. We handle Social Security Disability cases on a contingent fee, so no attorney fees are due until you win.
Workers' Compensation
One of the most important rights of an injured worker in Georgia is the right to an independent medical examination. Ongoing medical treatment must be done through an “authorized treating physician”, what is commonly called a company doctor. However, the injured worker can demand a one-time independent medical examination by any doctor of his/her choosing. The employer/insurer must pay for the examination and any tests the examining physician orders, within certain limits.
This right is especially helpful when the company doctor has released a worker to return to work before he/she is fully recovered, or when the company doctor refuses to give a fair permanent disability rating.
A qualified and experienced workers compensation attorney will know when to use an independent medical examination to protect your benefits and maximize your settlement. Morgan & Morgan has over 30 years experience helping injured workers get the benefits they deserve. Call us today.
Under Georgia law, when an injured worker has been released to light duty work by his/her treating physician, the employer can choose to offer light duty employment. If the injured worker refuses to make a good faith attempt to perform the job, the employer or insurer can suspend weekly workers compensation benefits.
However, in order for the employer/insurer to suspend benefits without a hearing, it must provide the treating physician with an accurate job description, and it must send the employee a copy of the job description at the time it is sent to the physician. If the job description is approved by the physician, the job is tendered to the employee, and the employee refuses the job or fails to make a good faith attempt to perform it, the employer can suspend the employee’s weekly benefits. In order to get the benefits reinstated, the employee would have to request a hearing and present evidence that the proposed job is not suitable employment.
If you have been injured on the job, it is very important to get advice from an experienced workers compensation attorney to insure you get the benefits you deserve.
If your treating physician has approved a light duty job and given you specific limitations, it is important that you stick to the limitations. If an employer insists that you do work that is more strenuous than your doctor authorized, it is usually best if you simply remind the employer of the restrictions and refuse to do the more strenuous work. Of course, this can cause conflict with the employer, but to do otherwise risks further injury.
Remember, every situation is different. It is important to consult with a qualified workers compensation attorney about the specifics of your case before taking any action.
Under Georgia Workers Compensation law, if an injured worker returns to work and is then terminated for reasons unrelated to the work injury, the employer usually will not have to reinstate the weekly benefit. Medical benefits would continue, however.
If the worker’s condition later changes, and he or she is no longer able to work, weekly benefits may be reinstated. It can often be a struggle to get the insurer to agree that the benefits should be recommenced, however, and it may require a hearing.
If your condition has changed, it is important to get advice from an experienced workers compensation attorney right away. Your attorney will review the medical records and consult with your doctor to determine if a request for reinstatement of benefits is called for.
In Georgia, workers compensation is an “exclusive remedy”. That means that in most cases, even if the employer or a coworker was negligent and caused your injury, the only claim available to the injured worker is a workers compensation claim. Under workers compensation, the injured worker is entitled to medical care, weekly benefits while out of work due to the injury, partial benefits if returned to work at light duty with less pay, and permanent disability benefits if the injury results in any permanent disability. The injured worker cannot recover for pain and suffering.
To establish a workers compensation claim, it is critical that the injury is reported to a supervisor promptly. Always insist on a written injury report. The employer should maintain a posted panel of medical providers for you to choose from. In most cases, you must use a medical provider from the panel.
In every serious work injury case, it is important to get good advice from an experienced workers compensation attorney early in the process. With good advice, disputes with the employer and insurer can often be avoided.
If your injury occurred in the course of your employment, your employer and its workers comp insurer should pay for all medical expenses incurred through an authorized treating physician, and should pay a weekly benefit until you are able to return to full duty work. If you have any permanent impairment as a result of your injury, you are entitled to compensation even if you return to regular duty employment.
YOUR EMPLOYER IS RESPONSIBLE FOR YOUR INJURY EVEN IF IT WAS YOUR FAULT, AND EVEN IF YOUR EMPLOYMENT HAS BEEN TERMINATED.
If you have suffered a serious work-related injury, qualified legal assistance is absolutely necessary. Consult with an experienced workers compensation attorney early in the process. It will likely save you considerable headaches later.
In many cases, the answer is yes. It has long been held in Georgia that an injury which occurs during ingress to, or egress from, an employee’s immediate place of work is “in the course of employment” and is compensable. West Point Pepperell. Inc. v. McEntire. 150 Ga Appeals 728 (1979); Mobley v. Durham Iron Company, 83 Ga Appeals 690 (1951).
In Hill v. Omni Hotel at CNN Center. 268 Ga Appeals 144 (2004), the Court of Appeals stated that the general rule in Georgia is “accidents that occur while Employees are traveling to and from work do not arise out of and in the course of employment and thus are not compensable under the Workers’ Compensation Act. But under the “ingress and egress” rule, where an Employee is injured while still on the Employer’s premises in the act of going to or coming from his or her work place, the Act does apply.”
For example, a recent client of Morgan & Morgan injured himself after clocking out at a local factory. He tripped on the stairs while leaving the building, causing a significant injury. When the employer refused to treat the injury as compensable, Morgan & Morgan filed for a hearing. The Judge ruled that the injury was compensable and ordered the employer to pay weekly benefits and medical expenses.
REMEMBER, it is extremely important to promptly report any work-related injury, no matter how slight, to your supervisor. Make sure a written report is made. Morgan & Morgan is here to help with advise and representation.
Bankruptcy process
You will meet with an attorney at your initial consultation.
Some other law firms have you meet with an assistant or paralegal first. With these firms, you may not even meet your attorney until your first court date. We feel it is important to meet face to face, so you can shake hands with the person who will actually represent you and get to know them. Most importantly, a paralegal or assistant cannot properly assess your options and advise you about the pros and cons of the bankruptcy process.
You will receive advice specific to your situation
Most people have a general idea of how bankruptcy works, but do not fully understand how it applies to them. This leads to misunderstandings about who can file for bankruptcy, which debts are eligible for discharge, and what happens with property and belongings. The initial consultation is our chance to clarify bankruptcy laws and how they apply to you and your specific situation. We will discuss your goals and priorities, and outline the different options available to accomplish them.
You will not file bankruptcy at your initial consultation
Under certain circumstances (foreclosure, repossession, garnishments), we can file a bankruptcy case immediately following the consultation. However, we normally encourage our clients to take the time to consider their different options. We understand that filing bankruptcy is a big decision that should not be entered into without advice and consideration. We want our clients to be comfortable with both the case they are filing and the attorney representing them before going forward with filing.
Please Come Even if you don’t Have all the Information or Money Discussed with your Attorney
By showing up for your appointment, even with incomplete information or filing fees, we can start the
process of preparing your documents for filing. Often, we will be able to file your case and submit additional information to the court later. Missing your appointment delays the help and relief we can get for you. Even worse, this may lead to further harassment and complications from your creditors.
You Will Meet with our Experienced and Highly Trained Staff
Your next appointment will be with a legal assistant on our staff. Your legal assistant is specifically trained to help gather information and prepare documents in connection with bankruptcy cases. Your attorney is in charge of preparing and filing your case, and the legal assistant aids in the process.
We Gather the Information and Documents for your Case
Your legal assistant will ask you questions about your debts, expenses, income, and assets. They will also review your credit report, paystubs, tax returns, bank accounts, and any recent payments or transfers you may have made. If you don’t have these documents available, please still come for your appointment. We can always get them after the meeting.
Your Attorney Reviews and Prepares your Case for Immediate Filing
At the end of your meeting, you are asked to read and verify the information gathered and to sign forms stating that the information is true and accurate to the best of your knowledge. Your case will then be given back to your attorney for final review and preparation of the documents to be filed with the bankruptcy court. Generally, if no unusual problems arise, your bankruptcy case will be filed with the court within about 24 hours of your meeting.
Every person that files for bankruptcy is required to complete two credit counseling courses. The cost of the credit counseling courses is $50 or $25 for each session. To complete the first credit counseling course:
- Gather the following information
- Monthly income
- Monthly expenses
- Your debts and the balance on your debts
- Go to www.acdcas.com
- Follow the directions on the website to set up your account
- Write down your user name and password
- When asked for the firm code type in “morgan” without the quotes
- After you register, you will be given a four digit user id number
- Write down your user id number
- Follow the direction on the website and fill out the requested information
- If you are unsure about any of the requested numbers, just put an estimate. Exact numbers are NOT necessary!
- You are required to spend at least one hour on the first course
- To complete the first course you will have complete an online chat
- They will ask for your user name, your date of birth, the last four digits of your SSN, and your user id number
- During the chat, you will verify information and ask any questions that you had during the course
- Your certificate of completion will be emailed to Morgan & Morgan
The first credit counseling course is designed to help you gather the required information to file bankruptcy. You will also see a snapshot of your financial situation.
Every person that files for bankruptcy is required to complete two credit counseling courses. The cost of the credit counseling courses is $50 or $25 for each session. To complete the second credit counseling course:
- If you do not know how to use a computer or prefer to use a phone, call
- (888) 415-8173 to complete your second course
- Gather the following information: Your case number
- Go to www.acdcas.com
- Log into your account using the user name and password you set up for the first course
- If asked for the firm code type in “morgan” without the quotes
- Follow the direction on the website and read the information on the screen
- You are required to spend at least two hours on the second course
- Your certificate of completion will be emailed to Morgan & Morgan
The second credit counseling course is designed to give you useful financial information and help you better manage your finances.
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Frequently Asked Questions About Bankruptcy
Morgan & Morgan handles bankruptcy cases in the Middle and Northern Districts of Georgia. In most cases, a bankruptcy must be filed in the District in which you live.
MIDDLE DISTRICT OF GEORGIA
The Middle District covers a large area across the State from Southwest Georgia to Northeast Georgia. The cities and counties in our area that fall within the Middle District include the following:
COUNTY CITIES
Clarke Athens, Winterville
Madison Danielsville, Hull, Colbert, Comer
Walton Monroe, Loganville, Social Circle
Oglethorpe Lexington, Crawford
Oconee Watkinsville, Bogart
Greene Greensboro, Union Point
Morgan Madison, Rutledge, Bostwick
Putnam Eatonton
Franklin Royston, Franklin Springs, Bowman, Carnesville, Lavonia
Hart Hartwell, Canon
Cases filed in the Middle District from the Counties above are filed with the Clerk of Court in Macon. However, any meetings and hearings are usually held in Athens.
NORTHERN DISTRICT OF GEORGIA
The Northern District covers a large area across North Georgia. The cities and counties in our area that fall within the Northern District include the following:
COUNTY CITIES
Barrow Winder, Statham
Jackson Jefferson, Commerce
Banks Maysville
Stephens Toccoa
Hall Gainesville, Flowery Branch
Gwinnett Lawrenceville, Snellville
Cases filed in the Northern District from the Counties above are filed with the Clerk of Court in Atlanta. However, meetings and hearings for cases in which the Debtor resides in Barrow, Jackson, Banks, Stephens, Hall, and several other counties are held in Gainesville.
Morgan & Morgan has over 30 years experience handling bankruptcy cases in both the Middle and Northern Districts of Georgia. We offer a free consultation to fully review your financial situation and advise you of all debt relief options. Let us help you get the relief you deserve.
In most bankruptcy cases, shortly after the final discharge order is entered by the court, the case is closed. However, this is not always the case. In some Chapter 7 bankruptcy cases, the case may remain open for months, or even years, after the discharge has been granted. This can be true when the Trustee is still trying to sell property or recover funds that are property of the bankruptcy estate and can be used to pay creditors, or when the court is still considering disputes over whether a particular debt is eligible for discharge.
Occasionally, there is a need to petition the court to reopen a bankruptcy case. This can be true when there is a dispute over whether a debt was discharged. Another example is when a creditor is trying to collect a discharged debt, and the debtor needs the court to take steps to enforce the discharge order. It is also sometimes necessary to reopen in order to file an amendment, or file a reaffirmation agreement.
Reopening the case for these purposes does not change the discharge date, and does not normally give creditors a new chance to file objections.
When it is necessary to reopen a case, the debtor’s attorney will file a motion with the court. It is within the court’s discretion to reopen the case, or refuse to do so. If you feel your case should be reopened, be sure to fully discuss the matter with your attorney. He/she should fully advise you of the pros and cons, and the cost of filing the motion and taking whatever other steps are needed.
Complaints by consumers about “debt settlement” and “debt management” companies have skyrocketed in recent years. Many of these companies market themselves as a viable alternative to bankruptcy. Often, they propose to set up a debt settlement payment plan. Under the plan, the consumer makes a payment each payday. The company proposes to hold the funds until a settlement fund is accumulated, and then settle out the consumer’s debts for pennies on the dollar.
Sounds great, right? Unfortunately, most of these companies manage to keep most of the funds for themselves. The consumer’s debts continue to fall further into default, and eventually lawsuits and harassment cause the plan to fail. The debt settlement company is the only one who profits.
The State of Georgia legislature recognized that this practice does not help, but only hurts those in need of relief. It passed a law which makes most debt settlement plans illegal. If you feel you have been victimized by one of these companies, call Morgan & Morgan for a consultation. You may be entitled to recover the funds you paid into the plan, as well as damages and attorney fees.
Morgan & Morgan is here to help.
Most obligations incurred in connection with a divorce settlement cannot be discharged in a Chapter 7 bankruptcy. However, that is not always true in Chapter 13. If a spouse takes over a joint debt as part of an alimony or support obligation, the agreement to pay the debt cannot be discharged. However, if the debt was assumed as part of a simple division of property or debts, a successful Chapter 13 plan can erase the obligation to the lender, AND the obligation to the ex-spouse that was created by the divorce settlement documents.
If an objection to dischargeability of a debt incurred as part of a divorce settlement agreement is filed in a Chapter 13 case, the bankruptcy court will look at the language of the agreement, and the facts and circumstances surrounding the marriage and separation, to determine whether the agreement to assume the debt was in the nature of alimony and support. If so, the debt to the ex-spouse will not be discharged, and the ex-spouse will be free to enforce the agreement in the divorce court. If, however, the agreement is found to be a division of debts or property, the ex-spouse will be limited to filing a proof of claim in the Chapter 13 case and hoping to recoup some of his/her losses through disbursements by the Chapter 13 Trustee.
If you, or your credit standing, are being affected by an ex-spouse’s bankruptcy filing, it is important to seek advice from an Athens bankruptcy attorney right away. There are strict deadlines for filing objections.
In most cases, filing a Chapter 13 bankruptcy case will allow you to recover possession of a vehicle that has been repossessed. Because the buyer retains a right to redeem the vehicle after repossession, he/she still has an ownership interest in it. Therefore the courts have held that it is part of the bankruptcy estate and must be returned to the buyer.
Once the vehicle is resold by the lender, however, it is almost certainly too late. If your vehicle has been repossessed, you must act quickly. Contact an experienced bankruptcy attorney. Make sure that he/she is prepared to file a case quickly. A good bankruptcy attorney knows that time is of the essence in this situation, and will get a case filed right away.
Of course, recovering possession of the vehicle is only the first step. You must propose a feasible plan to pay the debt. Your attorney should fully evaluate your finances and develop a plan that you can live with. In some cases, you will only have to pay back the value of the vehicle rather than the full debt. In almost all cases, the interest rate will be significantly reduced.
So, if your vehicle has been repossessed, don’t give up. Get advice from a highly qualified bankruptcy attorney right away.
Members of our armed forces, including Reserves and National Guardsmen, sacrifice in many ways, including financially, while on active duty. Congress has recognized these sacrifices, and enacted special protections against home foreclosures and high interest loans for those on active duty.
HOME FORECLOSURE PROTECTION: The Servicemembers Civil Relief Act (SCRA) prohibits the foreclosure of a servicemember’s property during the period of active duty, and for nine months thereafter, without a court order. This only applies, however, if the mortgage was taken out prior to the commencement of active duty. In states like Georgia, which normally allows quick foreclosure without any court action, this is significant protection.
INTEREST RATE PROTECTION: During the period of active duty, and for one year thereafter, lenders must lower the servicemember’s interest rate on any loan obtained before the active duty period began. The maximum rate, including late charges and other fees, is 6 percent per annum.
HOWEVER, the interest rate reduction must be requested in writing. The rate reduction applies to individual loans as well as joint loans. The rate reduction can be requested during the active service and for 180 days after the termination of the servicemember’s active duty orders. If interest over the allowed maximum was charged, the lender must retroactively credit the account.
With over 30 years experience in consumer law, Morgan & Morgan of Athens, Georgia is always ready to help servicemembers with debt problems or consumer claims. Call for a free consultation. 1-800-924-7438 or (706)752-7089.
Not always. If a debt is less than seven years old, paying it could improve your credit score, IF it is showing on your credit report. How much depends on how old the debt is.
If the debt is older than seven years, by law it should have already come off your credit report. The credit rating agencies should not be considering it in assigning your score, so repaying it would likely have no effect on your score.
If the debt is less than seven years old, but is not showing up on your credit report, paying it off will not help your score, AND COULD EVEN HURT IT. This could happen if the creditor reports the payment, since your credit report would then show a debt that was formerly delinquent.
So, if you are thinking of paying off old debt, it is important to prioritize:
FIRST PRIORITY: Tax debt. Tax debts to federal, state and local governments accrue penalties and interest at an astounding rate. And, the government has multiple ways of collecting the debt that are not available to general creditors, such as seizing your tax refunds or government benefits, levying on your wages, and seizing your property.
SECOND PRIORITY: Child support or alimony obligations, and any other obligations you incurred as part of a divorce settlement. These debts are not dischargeable in bankruptcy, and failure to pay can even land you in jail.
THIRD PRIORITY: Any creditor that has sued you and obtained a judgment. A judgment will normally constitute a lien against your property, and may give the creditor the right to garnish your wages or bank account.
FOURTH PRIORITY: Any debt upon which you have been served court papers, even if a judgment has not been entered. If you have been served, a judgment is likely in the near future.
FIFTH PRIORITY: Debt that has been handed over to a law firm for collection, especially if it is a local law firm. A collection lawsuit is much more likely to be filed by a law firm than a general collection agency.
SIXTH PRIORITY: Other debts that are showing up on your credit report. Pay the newer debts first, as these affect your credit score more than older debts.
SEVENTH PRIORITY: Other debts that are not showing up on your credit report.
If it is not possible for you to deal with your debts in this way, it may be time to look at your bankruptcy options. STEER CLEAR OF THE DEBT MANAGEMENT AND DEBT SETTLEMENT FIRMS THAT YOU SEE ADVERTISING EVERYWHERE. The statistics are clear that these services rarely solve debt problems. More often, they are the only ones who get paid, leaving you further in debt and further behind.
If you are considering bankruptcy, it is important to have a thorough consultation with an experienced bankruptcy attorney. You should leave that consultation with a good understanding of your options. Once you know your options, you can make an informed decision about what should be done. Never let an attorney or anyone else pressure you into filing a bankruptcy, or filing a particular type of bankruptcy. Get the facts first. Make sure you know the pros and cons of each type of consumer bankruptcy case.
Read full article to learn more about:
WHAT CAN I EXPECT AT MY INITIAL CONSULTATION?
DO I HAVE TO HAVE ALL MY FINANCIAL RECORDS?
WHAT TYPES OF BANKRUPTCY ARE AVAILABLE TO ME?
Our advice for cosigning a loan for a family member or friend is simple: DON’T DO IT! But if you do, understand the consequences if your friend or loved one can’t, or won’t, pay.
Cosigning is common. We see people every day who have cosigned a debt and been left with a liability they simply can’t pay. Many people think their liability is for only one-half of the debt—not so. If you cosign a debt and the borrower doesn’t pay, in most every case you will be responsible for the entire debt. And, the lender does not have to try to collect from the borrower. It can look to you even if it might be possible for it to collect from the borrower. Also, the lender usually does not have to repossess any collateral that secures the loan. If the lender feels it can easily collect from you, it will simply ignore the borrower and demand payment from you.
Generally, you must file a bankruptcy case in the District where you have lived for the biggest part of the last 180 days. So, in most cases, you must wait until you have lived in the new District for 91 days. However, filing in the wrong district may, on rare occasions, be the only option. This could be true if a foreclosure was imminent, for example.
If the case is filed in the wrong district, the debtor is still entitled to all of the protections of the bankruptcy code. Some Courts will require that the case be removed to the proper district, but others will allow the case to proceed if there are no creditor objections.
If you are considering a bankruptcy, it is best to get advice from a bankruptcy lawyer as early as possible, even if you may have to wait to file. A good attorney will review your situation and discuss all your options. If you will need to wait to file, a good attorney will advise you on dealing with your creditors in the meantime. It may be advantageous to continue paying certain creditors. It may also be important to stop paying certain creditors, even if you don’t want to discharge that particular debt. Always get good advice early.
Making the decision to file a bankruptcy case is not easy. It is important to look at all of your options, and understand both the benefits and negative effects of filing. These are some of the questions that must be considered:
(1) How badly do I need relief?
(2) Do I qualify for bankruptcy relief?
(3) Will filing a bankruptcy case really help?
(4) Will I lose my property?
(5) Can I afford the cost of filing a bankruptcy case?
Before deciding to file for bankruptcy, you must understand what bankruptcy will and will not do for you. Bankruptcy won’t solve every problem or get rid of every debt. If it is clear that you need bankruptcy relief, the next step is to determine what type of bankruptcy to file. Items to consider include:
TYPES OF DEBTS
CHAPTER 7 v. CHAPTER 13 BANKRUPTCY
In the United States collection agents are limited in the methods they can use to collect consumer debts by the Fair Debt Collection Practices Act (FDCPA). Consumer debts include credit card debt, auto loans, mortgage payments, medical bills and other family and household expenses not used for a business. If you are dealing with a debt collector or have any questions call your Morgan & Morgan for a free consultation today.
Georgia has a non-judicial foreclosure process. This allows a mortgage holder to foreclose much more quickly and simply than in many other states. The mortgage holder must run a notice in the official legal organ (newspaper) for the county where the property is located. The notice is run for four (4) consecutive weeks. On the first Tuesday of the following month, the property is sold at a foreclosure sale on the steps of the county courthouse.
When you file a Chapter 7 bankruptcy, any assets that you own, including funds in your bank account, become property of the bankruptcy estate. However, each Chapter 7 debtor is allowed to exempt certain property so as to protect it from being used to pay creditors. In Georgia, the exemption normally used to protect funds in a bank account is found in O.C.G.A Section 44-13-100(a)(6). It allows you to exempt up to $5600 in any assets. There are other exemptions that are used to protect the equity in your home, your household goods, an automobile, etc.
At Morgan & Morgan, when we are considering a case under Chapter 7, we carefully review your assets and work to maximize your exemptions. We work hard to insure that you get the fresh start you deserve.
Service members who receive a re-enlistment bonus or incentive pay and then leave the service before their re-enlistment period is completed can be faced with a large repayment obligation. Can this debt be discharged in bankruptcy?
In most cases, the answer is no. However, two exceptions apply.
Many people on a fixed income from Social Security end up with judgments against them due to old debts such as credit cards and medical bills. Normally, when a creditor obtains a judgment, they can then take steps to collect such as garnishment of wages or bank accounts, or seizure (also known as levy) of property. Social Security benefits, however, have special protections under the law.
When a bank or credit union receives a garnishment notice, it must review the history of the account being garnished to determine if a benefit payment was deposited into the account during the previous two months. Within two business days of receiving the garnishment notice, the financial institution must notify you if the funds are protected from garnishment. If the funds are identified as Social Security benefits, the bank cannot freeze the funds. You must be given “full and customary access” to the funds. And, the bank cannot collect a garnishment fee from the protected funds.
Of course, even if the judgment creditor cannot garnish your bank account, it may take other steps to collect, including seizure of property. And, most judgments act as a lien against your home, preventing you from selling or borrowing money against the property without paying off the judgment. If you are served with a lawsuit, it is critical that you get good legal advice immediately! Ignoring the lawsuit is never a good idea.
While bankruptcy will not solve every mortgage problem, in many cases foreclosures can be stopped and mortgages reinstated through the use of a Chapter 13 plan.
A Chapter 13 bankruptcy case allows an individual or married couple with regular income to deal with their debts by making regular payments to a Chapter 13 Trustee. The payments are made over a period of 3 to 5 years. The plan can cure an arrearage, or overdue balance, on a home mortgage over a 60 month term. A Chapter 13 bankruptcy filing can also deal with many other short-term debts such as credit cards, car loans, and medical bills. This can free up funds so that future mortgage payments can be made in a timely manner.
In addition, in many jurisdictions a Chapter 13 plan can remove or “strip off” a second or third mortgage on a house. In order to remove the second or third mortgages, the property value must be less than the total amount owed for the first mortgage. Once the lien is stripped off, the second mortgage can often be paid little or nothing through the plan. The remaining balance on the second or third mortgage is completely discharged at the conclusion of the plan.
Another huge advantage of Chapter 13 is that the case can be filed without a big upfront expense. With a Chapter 13 bankruptcy case, the homeowner’s attorney fees are included in the plan. The attorney fees are then paid during the course of the 3 to five year plan. In fact, a Chapter 13 bankruptcy case can be started for as little as $125 ($75 partial court costs and $50 credit counseling).
Section 523 of the U.S. Bankruptcy Code governs the dischargeability of taxes. Generally, taxes on income owed to the IRS or a state are not dischargeable in bankruptcy unless they are owed for a taxable year for which a return was due more than three years before the filing of the bankruptcy case, and certain other requirements are met. For example, the return for the 2009 tax year would normally have been due on April 15, 2010. Taxes for that year would not be dischargeable in a bankruptcy case unless the case was filed after April 15, 2013.
Often, some of the tax obligation is dischargeable, but the more recent taxes are not. In that case, the dischargeable portion can be wiped out in a bankruptcy, thereby substantially reducing the total obligation.
Even if your income taxes are not dischargeable in a Chapter 7 bankruptcy, you may be able to deal with them through a Chapter 13 plan. In many Chapter 13 cases, we are able to set up a plan to repay the taxes, without future interest, while discharging other unsecured debts like credit cards and medical bills.
A seriously injured worker can accumulate significant debt while out of work. Even if the Employer pays the required workers compensation benefits, the amount is often far less than the worker was earning prior to the injury. It is sometimes necessary to consider a bankruptcy case in order to protect any settlement amount from claims by creditors. Careful consideration of the client’s financial situation and the applicable bankruptcy law is critical in this situation.
If the injured worker has resided in Georgia for more than two years, it is likely that a bankruptcy case can be used to get debt relief and protect a workers compensation settlement. The Georgia bankruptcy exemptions are found in Section 44-13-100 of the Georgia Code. There is an exemption for payment on account of personal injury of up to $10,000. There is also an exemption for payment in compensation for loss of future earnings to the extent reasonably necessary for the support of the debtor and his/her dependents. So, in most cases the combination of these exemptions will fully protect a workers compensation settlement in a bankruptcy case.
If the worker has not resided in Georgia for more than two years, he/she may be required to use another State’s exemption code, which could be less generous in protecting settlement funds.
In either case, it is critical that the client get personal and specific advice from a bankruptcy specialist before filing a case.
Section 523 of the U.S. Bankruptcy Code governs the dischargeability of taxes. Generally, taxes on income owed to a “governmental unit” are not dischargeable in bankruptcy unless they are owed for a taxable year for which a return was due more than three years before the filing of the bankruptcy case, and certain other requirements are met.
Often, some of the tax obligation is dischargeable, but the more recent taxes are not. In that case, the dischargeable portion can be wiped out in a bankruptcy, thereby substantially reducing the total obligation.
However, even if your income taxes are not dischargeable in a Chapter 7 bankruptcy, you may be able to deal with them through a Chapter 13 plan. In many Chapter 13 cases, we are able to set up a plan to repay the taxes, while discharging other unsecured debts like credit cards and medical bills.
When a homeowner falls behind on their mortgage payments, the lending back will repossess the property. Typically, the bank will begin a foreclosure after 3 or 4 missed payments, but they can start the process after missing just 1 payment.
After the bank notifies you, they are required to run an advertisement in the local paper for 4 consecutive weeks. On the first Tuesday of the following month, the house will be auctioned at the steps of the courthouse.
All of your debts, payments, credit card accounts and other financial history are used to compute your FICO credit score. All of the credit agencies calculate a score between 300 (extremely poor creditworthiness) and 850 (perfect credit). The average score is about 700. Your credit score is used by creditors to make a decision on applications for car loans, mortgages, credit cards, and other purchases.
If credit is granted, your score is often used to determine the interest rate on the debt.
Chapter 7 Bankruptcy
When a bankruptcy case is filed, with few exceptions an “automatic stay” goes into effect. The stay prevents creditors, including mortgage lenders, from taking any action to collect a debt. If a foreclosure is pending, it must be stopped. If you file a Chapter 7 bankruptcy, however, the foreclosure may only be stopped temporarily. The lender will likely file a motion for relief from the stay. Such motions are routinely granted by the Courts. This will allow the lender to start the foreclosure process again.
Chapter 7 is sometimes called “straight bankruptcy”. Under Chapter 7, the Court will discharge (wipe out) many of your debts. Credit card debt, medical bills, and unsecured loans are typically discharged. Debts that have collateral, such as a car loan or a home mortgage, must be reaffirmed in order to protect the collateral. A reaffirmation is an agreement that the debt will not be discharged. Some debts, such as taxes, student loans, and divorce or child support obligations cannot be discharged in Chapter 7. Chapter 7 may be a good choice if you have unsecured debt that you cannot pay and have few secured debts. However, many factors must be considered before deciding whether bankruptcy is necessary and, if so, what type of case to file. To learn more about Chapter 7, click HERE.
Chapter 13 Bankruptcy
It is usually possible to refile under Chapter 13 after a case has been dismissed. However, you must be able to show that you have sufficient regular income to make the new plan feasible. If a car or other collateral has been repossessed, it can usually be recovered, provided that it hasn’t been sold to a third party and the new plan provides for payment of the debt.
If you are in a Chapter 13 plan and are unable to keep the payments current, the Trustee, or one of your creditors, may file a motion to dismiss the case. If this happens, you must move quickly to correct the situation.
In some districts, you must file a written response to the motion, or it will simply be granted without a hearing. In other districts, the motion is always set down for a hearing. If a response is required, make sure that your attorney files one promptly. If not, you may want to consider filing a response yourself.
When you file any type of bankruptcy case, you must list all of your debts and all of your assets. In Chapter 13, however, you can often propose a plan that treats debts differently depending on the type of debt.
For example, the plan may classify a cosigned debt to be paid with interest, while paying little or nothing to other unsecured creditors. Long-term debts, such as a home mortgage, can also be treated differently than other secured debts. The plan may provide that any arrearage (back payments) be caught up through the plan, but the future payments be made by you, rather than through the plan.
What cannot be done in a Chapter 13 plan is to treat similar types of debts differently. For example, you would not be allowed to pay one particular credit card debt in full, while paying little or nothing to other credit card debts.
Disability
The Social Security Administration uses a “sequential evaluation” process in evaluating a disability claim. The first step in the process is to determine if the claimant is engaged in “substantial gainful activity”. If so, the claim is denied and the medical issues are not even reviewed. So, unless an individual is not working, or is working very little, it is rarely helpful to move forward with a claim for benefits. In most cases, it is better to continue to work as long as you can, and file your claim when you can no longer continue. If it is inevitable that a claim will be necessary, focus on developing the medical evidence that will be necessary to prove the claim once it is filed. See your doctors, ask for their opinion as to your work capabilities, tell them that you will be filing a claim soon, and ask for their help in documenting your medical problems as thoroughly as possible. This may help you get an early favorable decision on your claim and avoid a lengthy appeal process.
Once you have reached the point of filing a claim, help from an experienced attorney can be invaluable. At Morgan & Morgan, we work with your doctors to insure the agency gets a complete picture of your impairments. We handle any necessary appeals. If a hearing is necessary, we present your case to the judge through documents and witness testimony. We handle Social Security Disability cases on a contingent fee, so no attorney fees are due until you win.
Workers' Compensation
One of the most important rights of an injured worker in Georgia is the right to an independent medical examination. Ongoing medical treatment must be done through an “authorized treating physician”, what is commonly called a company doctor. However, the injured worker can demand a one-time independent medical examination by any doctor of his/her choosing. The employer/insurer must pay for the examination and any tests the examining physician orders, within certain limits.
This right is especially helpful when the company doctor has released a worker to return to work before he/she is fully recovered, or when the company doctor refuses to give a fair permanent disability rating.
A qualified and experienced workers compensation attorney will know when to use an independent medical examination to protect your benefits and maximize your settlement. Morgan & Morgan has over 30 years experience helping injured workers get the benefits they deserve. Call us today.
Under Georgia law, when an injured worker has been released to light duty work by his/her treating physician, the employer can choose to offer light duty employment. If the injured worker refuses to make a good faith attempt to perform the job, the employer or insurer can suspend weekly workers compensation benefits.
However, in order for the employer/insurer to suspend benefits without a hearing, it must provide the treating physician with an accurate job description, and it must send the employee a copy of the job description at the time it is sent to the physician. If the job description is approved by the physician, the job is tendered to the employee, and the employee refuses the job or fails to make a good faith attempt to perform it, the employer can suspend the employee’s weekly benefits. In order to get the benefits reinstated, the employee would have to request a hearing and present evidence that the proposed job is not suitable employment.
If you have been injured on the job, it is very important to get advice from an experienced workers compensation attorney to insure you get the benefits you deserve.
If your treating physician has approved a light duty job and given you specific limitations, it is important that you stick to the limitations. If an employer insists that you do work that is more strenuous than your doctor authorized, it is usually best if you simply remind the employer of the restrictions and refuse to do the more strenuous work. Of course, this can cause conflict with the employer, but to do otherwise risks further injury.
Remember, every situation is different. It is important to consult with a qualified workers compensation attorney about the specifics of your case before taking any action.
Under Georgia Workers Compensation law, if an injured worker returns to work and is then terminated for reasons unrelated to the work injury, the employer usually will not have to reinstate the weekly benefit. Medical benefits would continue, however.
If the worker’s condition later changes, and he or she is no longer able to work, weekly benefits may be reinstated. It can often be a struggle to get the insurer to agree that the benefits should be recommenced, however, and it may require a hearing.
If your condition has changed, it is important to get advice from an experienced workers compensation attorney right away. Your attorney will review the medical records and consult with your doctor to determine if a request for reinstatement of benefits is called for.
In Georgia, workers compensation is an “exclusive remedy”. That means that in most cases, even if the employer or a coworker was negligent and caused your injury, the only claim available to the injured worker is a workers compensation claim. Under workers compensation, the injured worker is entitled to medical care, weekly benefits while out of work due to the injury, partial benefits if returned to work at light duty with less pay, and permanent disability benefits if the injury results in any permanent disability. The injured worker cannot recover for pain and suffering.
To establish a workers compensation claim, it is critical that the injury is reported to a supervisor promptly. Always insist on a written injury report. The employer should maintain a posted panel of medical providers for you to choose from. In most cases, you must use a medical provider from the panel.
In every serious work injury case, it is important to get good advice from an experienced workers compensation attorney early in the process. With good advice, disputes with the employer and insurer can often be avoided.
If your injury occurred in the course of your employment, your employer and its workers comp insurer should pay for all medical expenses incurred through an authorized treating physician, and should pay a weekly benefit until you are able to return to full duty work. If you have any permanent impairment as a result of your injury, you are entitled to compensation even if you return to regular duty employment.
YOUR EMPLOYER IS RESPONSIBLE FOR YOUR INJURY EVEN IF IT WAS YOUR FAULT, AND EVEN IF YOUR EMPLOYMENT HAS BEEN TERMINATED.
If you have suffered a serious work-related injury, qualified legal assistance is absolutely necessary. Consult with an experienced workers compensation attorney early in the process. It will likely save you considerable headaches later.
In many cases, the answer is yes. It has long been held in Georgia that an injury which occurs during ingress to, or egress from, an employee’s immediate place of work is “in the course of employment” and is compensable. West Point Pepperell. Inc. v. McEntire. 150 Ga Appeals 728 (1979); Mobley v. Durham Iron Company, 83 Ga Appeals 690 (1951).
In Hill v. Omni Hotel at CNN Center. 268 Ga Appeals 144 (2004), the Court of Appeals stated that the general rule in Georgia is “accidents that occur while Employees are traveling to and from work do not arise out of and in the course of employment and thus are not compensable under the Workers’ Compensation Act. But under the “ingress and egress” rule, where an Employee is injured while still on the Employer’s premises in the act of going to or coming from his or her work place, the Act does apply.”
For example, a recent client of Morgan & Morgan injured himself after clocking out at a local factory. He tripped on the stairs while leaving the building, causing a significant injury. When the employer refused to treat the injury as compensable, Morgan & Morgan filed for a hearing. The Judge ruled that the injury was compensable and ordered the employer to pay weekly benefits and medical expenses.
REMEMBER, it is extremely important to promptly report any work-related injury, no matter how slight, to your supervisor. Make sure a written report is made. Morgan & Morgan is here to help with advise and representation.
Bankruptcy process
You will meet with an attorney at your initial consultation.
Some other law firms have you meet with an assistant or paralegal first. With these firms, you may not even meet your attorney until your first court date. We feel it is important to meet face to face, so you can shake hands with the person who will actually represent you and get to know them. Most importantly, a paralegal or assistant cannot properly assess your options and advise you about the pros and cons of the bankruptcy process.
You will receive advice specific to your situation
Most people have a general idea of how bankruptcy works, but do not fully understand how it applies to them. This leads to misunderstandings about who can file for bankruptcy, which debts are eligible for discharge, and what happens with property and belongings. The initial consultation is our chance to clarify bankruptcy laws and how they apply to you and your specific situation. We will discuss your goals and priorities, and outline the different options available to accomplish them.
You will not file bankruptcy at your initial consultation
Under certain circumstances (foreclosure, repossession, garnishments), we can file a bankruptcy case immediately following the consultation. However, we normally encourage our clients to take the time to consider their different options. We understand that filing bankruptcy is a big decision that should not be entered into without advice and consideration. We want our clients to be comfortable with both the case they are filing and the attorney representing them before going forward with filing.
Please Come Even if you don’t Have all the Information or Money Discussed with your Attorney
By showing up for your appointment, even with incomplete information or filing fees, we can start the
process of preparing your documents for filing. Often, we will be able to file your case and submit additional information to the court later. Missing your appointment delays the help and relief we can get for you. Even worse, this may lead to further harassment and complications from your creditors.
You Will Meet with our Experienced and Highly Trained Staff
Your next appointment will be with a legal assistant on our staff. Your legal assistant is specifically trained to help gather information and prepare documents in connection with bankruptcy cases. Your attorney is in charge of preparing and filing your case, and the legal assistant aids in the process.
We Gather the Information and Documents for your Case
Your legal assistant will ask you questions about your debts, expenses, income, and assets. They will also review your credit report, paystubs, tax returns, bank accounts, and any recent payments or transfers you may have made. If you don’t have these documents available, please still come for your appointment. We can always get them after the meeting.
Your Attorney Reviews and Prepares your Case for Immediate Filing
At the end of your meeting, you are asked to read and verify the information gathered and to sign forms stating that the information is true and accurate to the best of your knowledge. Your case will then be given back to your attorney for final review and preparation of the documents to be filed with the bankruptcy court. Generally, if no unusual problems arise, your bankruptcy case will be filed with the court within about 24 hours of your meeting.
Every person that files for bankruptcy is required to complete two credit counseling courses. The cost of the credit counseling courses is $50 or $25 for each session. To complete the first credit counseling course:
- Gather the following information
- Monthly income
- Monthly expenses
- Your debts and the balance on your debts
- Go to www.acdcas.com
- Follow the directions on the website to set up your account
- Write down your user name and password
- When asked for the firm code type in “morgan” without the quotes
- After you register, you will be given a four digit user id number
- Write down your user id number
- Follow the direction on the website and fill out the requested information
- If you are unsure about any of the requested numbers, just put an estimate. Exact numbers are NOT necessary!
- You are required to spend at least one hour on the first course
- To complete the first course you will have complete an online chat
- They will ask for your user name, your date of birth, the last four digits of your SSN, and your user id number
- During the chat, you will verify information and ask any questions that you had during the course
- Your certificate of completion will be emailed to Morgan & Morgan
The first credit counseling course is designed to help you gather the required information to file bankruptcy. You will also see a snapshot of your financial situation.
Every person that files for bankruptcy is required to complete two credit counseling courses. The cost of the credit counseling courses is $50 or $25 for each session. To complete the second credit counseling course:
- If you do not know how to use a computer or prefer to use a phone, call
- (888) 415-8173 to complete your second course
- Gather the following information: Your case number
- Go to www.acdcas.com
- Log into your account using the user name and password you set up for the first course
- If asked for the firm code type in “morgan” without the quotes
- Follow the direction on the website and read the information on the screen
- You are required to spend at least two hours on the second course
- Your certificate of completion will be emailed to Morgan & Morgan
The second credit counseling course is designed to give you useful financial information and help you better manage your finances.
Our Services
Additional Bankruptcy Reading
Bankruptcy law FAQ
Filing for Bankruptcy: Choosing Between Chapter 7 and Chapter 13
Resources
Client Testimonials
Attorney Jason Braswell & Lisa LaCount are just wonderful...not one time have I call the office that I didn’t get a chance to speak directly to Jason or Lisa, or receive an immediate return call/email with a response. Thanks to this attorney team, my mind and our finances are in order. - C.P.
Morgan & Morgan worked on disability benefits for my unemployed 50-year old brother who was homeless and suffering from autism/Asperger’s syndrome. We all knew nothing (!) and Mr. Morgan was a breath of fresh air.
My experience with Morgan & Morgan was exceptional!!! I was very well informed about their procedures and felt comfortable about going forth with my case. Everything was handled with importance. - C.J.
We were fully enlightened about our situation which helped us choose our best choice concerning a problem. We would recommend Mr Braswell to our friends. - H.A.
A very respectful law firm that has very good customer service which is job one in the human world. Thank you Morgan and Morgan of Athens, GA. - W.S.
Jason is the best lawyer ever. I appreciate everything he's done in my case. I could never thank him enough.
Lee did a great job. He helped me save my home and get a grip on my financial situation. The staff at Morgan & Morgan was great. Always easy to reach on the phone and mindful of my situation. Thanks!
Our attorneys are skilled at negotiating for large reductions in your payday loan debt.
Morgan & Morgan attorneys can also settle your other debts such as credit card debt, auto loans, mortgage debt, etc. Contact us if you need assistance with payday loans or have any questions about the process. We have provided debt solutions to clients throughout Georgia, the firm services clients in the surrounding counties including: Oconee, Morgan, Walton, Jackson, Hall, Barrow, Madison, Oglethorpe, Elbert, Hart, Franklin, Banks, Habersham, Greene and Stephens.
Our attorneys are skilled at negotiating for large reductions in your payday loan debt.
Morgan & Morgan attorneys can also settle your other debts such as credit card debt, auto loans, mortgage debt, etc. Contact us if you need assistance with payday loans or have any questions about the process. We have provided debt solutions to clients throughout Georgia, the firm services clients in the surrounding counties including: Oconee, Morgan, Walton, Jackson, Hall, Barrow, Madison, Oglethorpe, Elbert, Hart, Franklin, Banks, Habersham, Greene and Stephens.