If you are considering filing for bankruptcy in Georgia, it is understandable that your first concerns have to do with cost. The fact that you are looking into options to address your debt means your finances are tight, and you are already feeling overwhelmed. As you review your income and expenses, you realize that the cycle is never-ending with late fees and interest. Plus, creditors may be sending threatening letters and calling you at home and work.

Bankruptcy is an effective way to end this torturous cycle, but it will be necessary to pay a lawyer for their services in a Chapter 7 or Chapter 13 case. These matters are not like the contingency fees that you might know from personal injury cases, where you do not pay if you win. Your Athens, GA bankruptcy attorney will bill you at an amount that you will be aware of in advance. Fortunately, you will get a lot from your investment when it comes to legal support in a bankruptcy case.

Cost for Bankruptcy Cases

There are many variables that affect how much you will pay for a bankruptcy lawyer, and one is the type of bankruptcy case. Chapter 7 is bankruptcy discharge, in which the proceedings are usually concluded within a few months. The process is predictable for an attorney, so a flat fee is often available for Chapter 7 cases. With Chapter 13, the court will implement a debt repayment plan that takes place over three to five years. The extended period of time requires more work, so many firms will charge on an hourly basis.

Also, keep in mind that there are additional costs involved with bankruptcy that do not go to your lawyer. You will have to pay filing fees in the amount of $338 for Chapter 7 and $313 for Chapter 13. You are also responsible for the cost of credit counseling services, which must be less than $50 according to bankruptcy rules.

Steps in a Chapter 7 Bankruptcy

Chapter 7 is bankruptcy discharge, which means you can eliminate all qualifying debt. However, you are required to liquidate nonexempt assets, which means you must ensure you protect what you can. The process actually starts before you file your case, because you will need to get credit counseling within 180 days prior. Plus, you must take time to gather, review, and organize all paperwork for your Chapter 7 case. Besides providing details on debt and your assets, these documents will prove eligibility and whether you qualify under the state median income or the Means Test.

The legal process involves the following stages:

• Preparing Chapter 7 bankruptcy petition and all schedules;
• Filing the petition and serving all necessary parties and creditors;
• The bankruptcy trustee is appointed to manage the estate:
• The meeting with creditors, in which the court addresses your debt and claimed exemptions; and,
• The court enters a discharge order that eliminates all qualifying debts.

Chapter 13 Debt Repayment

The steps for Chapter 13 of the US Bankruptcy Code are more complex because the focus is on debt repayment of a portion of what you owe instead of eliminating all debt entirely. You may need to file bankruptcy through this option if you do not qualify for Chapter 7 because your income is too high. On the other hand, you might choose Chapter 13 if you have nonexempt assets that you do not want to lose through liquidation.

The basic eligibility requirement is that you must have a steady income because this is the source of funds that you will apply toward your debt repayment plan. If you qualify, the next steps are:

• Draft the Chapter 13 bankruptcy petition and complete all schedules;
• Prepare the proposed debt repayment plan to file with the petition or within 14 days thereafter;
• The court appoints the bankruptcy trustee to oversee the process and your debt repayment plan;
• The meeting with creditors;
• A confirmation meeting to validate your debt repayment plan;
• Comply with the plan for the next three to five years; and,
• Obtain a discharge order.

How a Bankruptcy Lawyer Guides You Through the Process

Among the most valuable assistance your attorney offers is advising you on the type of bankruptcy that is right for you. You probably know that there are drawbacks to Chapter 7 and Chapter 13, but you might not be fully aware of the benefits of going through the process. In some cases, bankruptcy is the best option when debt has taken over your life.

Your Georgia bankruptcy lawyer also delivers on many of the tasks necessary to complete a Chapter 7 or Chapter 13 case, including:

• Collecting all documents necessary to file the petition;
• Helping you identify exempt versus nonexempt assets, and developing a Chapter 7 strategy to keep what is allowed by law;
• Advising you on the Chapter 13 debt repayment plan and working out an arrangement you can afford;
• Attending the meeting with creditors; and,
• Finalizing the case.

Discuss Your Situation with an Athens, GA Bankruptcy Lawyer

As you can see, having legal representation is crucial to ensure your rights and financial interests are protected in a bankruptcy case. You need a Georgia bankruptcy attorney to advise you on Chapter 7 versus Chapter 13, assist with paperwork, and explain what to expect. To learn more about how we handle billing at Morgan & Morgan, Attorneys at Law, P.C., please contact us to set up a free consultation at our offices in Athens, GA.

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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.