When you are reviewing options for bankruptcy, you may soon discover that the benefits and eligibility rules for a Chapter 7 case are definitely appealing. Chapter 7 is known as discharge bankruptcy because it allows you to eliminate all qualifying debt once you emerge from the process. However, it is also termed liquidation bankruptcy because the trustee can sell your property to satisfy debts in some cases. These are two very important, competing factors, making it critical to retain legal counsel for advice.

Of course, your financial situation is top of mind when considering Chapter 7. You will want to know the legal expenses involved with discharging debt, perhaps to determine whether representation is worth it. When you know the extensive tasks, strategy, and other details your attorney will handle, you will realize that your investment is essential for protecting your rights. Still, it is useful to review some information on how much an Athens, GA Chapter 7 bankruptcy lawyer costs.

Fees for Georgia Bankruptcy Attorneys

Though bankruptcy is never easy, many of the issues in a case under Chapter 7 of the US Bankruptcy Code are predictable. If you are eligible, you can discharge all qualifying debt through this process. The bankruptcy trustee does have the power to liquidate your nonexempt assets to pay your creditors, but doing so is not always practical. These factors may affect the cost of an attorney as follows:

• If you do not have any assets that could be sold for a reasonable value, you have a no-asset case. Discharge is the focus, and the order is entered by the court. Your lawyer knows what to expect and can anticipate the investment in the case, so you may pay a flat fee for legal services.
• When you have assets that you do not want to lose to liquidation, your attorney must engage in a meticulous process of applying exemptions under Georgia law. Being less predictable in terms of the investment of effort and time, you might be paying an hourly rate.

You receive details about billing, so there will be no surprises about flat versus hourly fees. Keep in mind that additional costs include $338 filing fee and fees for credit counseling courses.

Steps for Chapter 7 Bankruptcy in Athens

Your Georgia bankruptcy attorney will take care of all important legal tasks when you pay for services, and you can get started right away with the preparations. Within 180 days before filing, you must complete the credit counseling course. It is also necessary to gather and organize all financial documents that may be relevant to eligibility, your debts, and exempt and nonexempt property. The next steps include:

• Chapter 7 Bankruptcy Petition: You must file the Chapter 7 bankruptcy petition along with all relevant schedules.
• Trustee Appointment: The court will appoint a bankruptcy trustee who takes control over your assets and debts, which become the bankruptcy estate.
• Creditor’s Meeting: At this hearing, you will appear to answer questions from creditors about your finances, assets, and debts. The point is to confirm the information you provided in your bankruptcy petition. Creditors will also review exempt property to verify that it qualifies.
• Debt Counseling: Within 60 days after the creditor’s meeting, you must take another course.
• Liquidation: If you do have any appreciable nonexempt property that could be sold to pay to creditors, the bankruptcy trustee will liquidate.
• Discharge: After any payments to creditors from liquidated assets, all remaining debts are eliminated.

 

Tips for Choosing a Chapter 7 Bankruptcy Lawyer in Athens

For many people, hiring an attorney for a bankruptcy case is the first time they have ever needed representation. You could use some recommendations on how to retain a Georgia Chapter 7 lawyer that will work for your needs.

• Make sure the candidate focuses on bankruptcy, which should be the majority of his or her cases.
• Ask who will be your point of contact. Though dealing with a paralegal or legal assistant is expected, you want access to your lawyer.
• Find out how much a Chapter 7 bankruptcy lawyer costs, and decide if you are willing to pay.

Benefits of Chapter 7 Bankruptcy in Athens

Discharging all qualifying debt is the most impactful advantage of filing for Chapter 7. You will no longer be paying amounts toward a balance that keeps increasing through late fees and interest, and you can get started with the process of rebuilding your credit right away.

Another important benefit of Chapter 7 and other types of bankruptcy is the automatic stay. Upon filing your petition, the court imposes a rule that prohibits creditors from taking any action to collect your debts. This means:

 

• The calls, letters, and harassment from creditors end;
• You cannot be sued by a creditor;
• Any creditor lawsuits that were initiated will be paused;
• Wage garnishments stop;
• Foreclosure proceedings cease on your home; and,
• Your car cannot be repossessed for an auto loan.

Set Up a Free Consultation with an Athens, GA Chapter 7 Bankruptcy Attorney

These benefits of Chapter 7 bankruptcy are significant, but you will also feel a sense of relief with the weight of crushing debt off your shoulders. Morgan & Morgan, Attorneys at Law, P.C. is dedicated to supporting you throughout the case. We will advise you on other bankruptcy options where appropriate, and our team will take on filing documents and other details. Please contact our office to schedule a no-cost consultation with an Athens, GA Chapter 7 bankruptcy lawyer today.

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