In as little as about nine months, Chapter 7 bankruptcy gives honest, yet unfortunate debtors a fresh start, as the Supreme Court has guaranteed so many times over the past hundred years. So, this vehicle is ideal for people with pressing unsecured debt.

Chapter 7 does more than quickly eliminate unsecured debts. It also protects your key assets, such as your house, motor vehicle, personal property, government benefits, and retirement account. And, thanks to bankruptcy’s Automatic Stay, Chapter 7 helps debtors regain control over their own finances.

An Athens bankruptcy attorney knows how to expedite the process even more. Additionally, a lawyer knows how to use a number of advanced bankruptcy provisions which, in many cases, can save your family thousands of dollars.

Preparing to File

In an emergency situation, an Athens bankruptcy lawyer can normally file an emergency petition in less than twelve hours. Typically, however, the pre-fling process usually takes about a week.

First, debtors must meet with Athens bankruptcy lawyers. That meeting can be live, on the phone, or via Zoom. An attorney must review your case to determine if Chapter 7 is the appropriate response and issue certain legally required warnings.

At this meeting, a lawyer will discuss financial qualifications for Chapter 7. Essentially, the debtor’s annual income must be below the average amount for that family size in that geographic area. The Department of Justice releases generic guidelines. The financial threshold might be lower in your specific situation.

Next, debtors must take a credit counseling course. Many debtors have already taken such a course. If not, they can usually take one online.

Finally, debtors should begin collecting documents that will be needed for the coming 341 meetings. These documents vary in different jurisdictions, but they normally include:

• Government-issued photo ID
• Social Security card or other proof of Social Security number
• Last three pay stubs
• Last three years of tax returns
• Last three months of bank statements
• Insurance declaration pages

Debtors have a legal duty to fully cooperate with bankruptcy trustees (individuals who oversee a bankruptcy for a judge). So, it’s best to get a head start on this document collection process rather than wait until the last minute.

Filing the Petition and Schedules

Athens bankruptcy lawyers typically complete all bankruptcy forms based on the information the debtor provides at the initial consultation. However, questions occasionally come up. The petition and schedules contain information like:

• Personal information
• List of real and personal property
• Breakdown of checking accounts and other liquid assets
• All known creditors
• Monthly income and expense breakdown
• The Statement of Financial Affairs

The creditor matrix is critical as well. Unless creditors receive actual notice of the filing, they are not bound by the Automatic Stay.

Much like the pre-filing process, the filing process could take a few hours or a few days, depending on the case’s complexity.

341 Meeting of Creditors and Athens Bankruptcy Lawyers

The oddly named creditors’ meeting usually takes place about six weeks after the filing date at the trustee’s business office. Your Athens bankruptcy lawyer will give you the details, such as the exact time, date, and place.

Creditors hardly ever appear at the creditors’ meeting. The only participants are the debtor, the debtor’s lawyer, and the trustee.

Chapter 7 341 meetings are very straightforward. The trustee verifies the debtor’s identity. Then, the trustee asks a few yes/no questions, which are mostly related to potential fraud. Your Athens bankruptcy lawyer typically provides you with the questions and answers in advance. Finally, the trustee reviews any red flags raised in the petition or the documents provided.

If there are any red flags, generally due to a question about an asset exemption, the trustee usually resets the meeting for a later date. In the meantime, the trustee could file an action in court demanding the debtor turn over the asset to the trustee.

Debt Discharge

About six months after the trustee’s meeting adjourns, the judge usually signs a discharge order. Unsecured debt discharge eliminates the legal requirement to repay the debt. If that debt involves collateral consequences, such as a tax lien, an Athens bankruptcy lawyer must deal with those consequences separately.

Speaking of tax debt, even though these obligations are unsecured, they are only dischargeable in certain situations. The same thing applies to student loans and a few other kinds of unsecured debts.

Rely on an Assertive Chapter 7 Bankruptcy Lawyer in Athens

Chapter 7 generally eliminates unsecured debts in less than nine months. For a free consultation with an experienced Athens bankruptcy lawyer, contact Morgan & Morgan, P.C., Attorneys at Law. 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.