Are you asking how often can you file chapter 7 bankruptcy in Athens, GA? Technically, there is no limit to the number of times a person can file a Chapter 7 liquidation bankruptcy. However, multiple filings often limit the effectiveness of two of the three pillars of bankruptcy. To find out which two are affected, and to find out what these pillars are in the first place, you’ll have to keep reading.

If all three pillars are in place, Chapter 7 gives distressed debtors relief from debt collectors and a fresh financial start. Even if a Chapter 7 does not fire on all cylinders, it still has substantial benefits for you and your family.

A chapter 7 bankruptcy lawyer in Athens can unlock all these benefits and maximize the fresh start, which the Bankruptcy Code guarantees. Furthermore, only an attorney gives you solid legal advice about the bankruptcy and non-bankruptcy options which are best for your situation.

Athens Georgia Automatic Stay

Section 362 of the Bankruptcy Code immediately stops all creditor adverse actions, including things like harassing phone calls, repossession, wage garnishment, and foreclosure. Bankruptcy in general, and the Automatic Stay in particular, is a shield and not a sword. If there is evidence that the debtor is misusing this process, which usually means any prior filings within the past six months, the court usually limits the Automatic Stay, as follows:

• One Prior Filing: The Automatic Stay takes full and complete effect if a Georgia bankruptcy lawyer files a motion to extend the stay along with the petition and schedules. In these situations, the judge normally does not require a hearing or even look too closely at the paperwork.
• Two Prior Filings: A Georgia bankruptcy lawyer can still file a motion and make the Stay go into effect. Most judges grant these motions if the debtor shows good cause, a vague phrase which usually means a reason better than “my car ran out of gas.” However, even if the judge grants the motion, the Stay might only have a limited effect.
• Three Prior Filings: There is not much a Georgia bankruptcy lawyer can do at this point. The presumption that the debtor is taking advantage of the system is too strong. However, even in these situations, the other two pillars of bankruptcy are fully available, in most cases.

It does not matter if the prior filing during the lookback period was a voluntary or involuntary dismissal. Courts are also wise to the name game. If Frank files bankruptcy, Frank LLC files bankruptcy, and Frank files again, he would probably have two prior filings on his record.

Property Exemptions in Georgia

Unless you file bankruptcy, creditors normally do not need court orders to seize your property and sell it to pay your debts. Once you file, generous property exemptions apply. In the Peachtree State, some of these exemptions include:

• Homestead Exemption: Most Georgia debtors may exempt (protect) up to $21,500 of home equity. Only owners who have paid off more than about half the loan have a substantial amount of equity. The bank applies most payments to prepaid interest as opposed to the UPB (unpaid principal balance).
• Motor Vehicle: Georgia law shields up to $5,000 in vehicle equity. If you drive a new car, you probably have little equity, because of the aforementioned interest-first payments. If you have a used car, especially if it has been in a minor accident, it probably has essentially no financial value.
• Retirement Accounts: Cash in a 401(k) or other retirement account is a tempting target for creditors who are after unpaid debts. Georgia law exempts these accounts, regardless of their value. On a related note, Social Security and other government benefits are likewise exempt.

Other property exemptions include household goods, tools of the trade, current wages, and FSOs (Family Support Obligations), like child support.

These exemptions apply no matter how many times you have, or have not, filed bankruptcy. In fact, the written exemptions are just the beginning. A Georgia bankruptcy lawyer can use some legal loopholes, like the best interests of creditors rule, to protect additional property.

Georgia Bankruptcy Debt Discharge Explained

Discharge eliminates the legal obligation to repay a debt. Most unsecured obligations, such as medical bills and credit cards, are dischargeable in bankruptcy.

If you filed bankruptcy previously, a waiting period applies before you are eligible for another discharge. The Chapter 7 discharge waiting period is usually eight years. It’s shorter in some cases, especially if you previously filed a Chapter 13.

Sometimes, discharge does not matter. In fact, a Georgia bankruptcy lawyer often helps debtors file a Chapter 20 bankruptcy. Some people file a Chapter 13 after Chapter 7, to take advantage of the extended repayment period. Chapter 7 almost always takes longer than six months. So, when these debtors file Chapter 13, they have no previous filings on their record, for Automatic Stay purposes.

Contact a Chapter 7 Bankruptcy Lawyer at Morgan & Morgan

Are you asking, how often can you file chapter 7 bankruptcy in Athens and Georgia? You can file bankruptcy as often as you want, but the effect might be limited. For a free consultation with an experienced Georgia bankruptcy lawyer, contact Morgan & Morgan, Attorneys at Law, P.C. Home, virtual, and after-hours visits 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.