Typically, the first step in any recovery, including recovery from financial issues, is admitting there is a problem. And, many people have a serious problem in this area. 25 percent of people with money problems say they experience Post Traumatic Stress Disorder-type symptoms, such as sleeplessness, depression, anxiety, and inexplicable emotional outbursts. The percentage is even higher among Millennials.

By giving them control over their own finances, bankruptcy reduces or eliminates such symptoms, so debtors can get their lives back. The Automatic Stay immediately halts all creditor adverse actions, from annoying phone calls to impending foreclosure. Chapter 7 quickly eliminates credit cards and other unsecured debts, and Chapter 13 bankruptcy gives distressed debtors up to five years to catch up on past-due accounts.

As outlined below, reaching out to an experienced Georgia bankruptcy attorney should usually be the first step toward filing bankruptcy.

Partner with a Georgia Bankruptcy Attorney

Many people think that filing bankruptcy is largely a matter of filling out forms. So, they attempt to handle everything themselves or rely on a bankruptcy petition preparer. Both of these options are very bad ideas.

Yes, to file bankruptcy, you must fill out forms. But unlike tax forms, bankruptcy forms do not include instructions. So, DIY filers are completely alone.

Bankruptcy petition preparers might not be any more experienced than a DIY filer. There are essentially no qualifications in this area. Almost anyone can be a bankruptcy petition preparer. Even if you do happen to find someone with experience, a non-lawyer petition preparer cannot give you any legal advice. A preparer certainly cannot represent you in court, if needed.

True, a DIY or preparer bankruptcy usually costs less than an attorney bankruptcy. But, you get only what you pay for. Additionally, the increased stress, anxiety, and other emotional costs of a non-lawyer bankruptcy usually offset any financial savings.

A Georgia bankruptcy lawyer offers peace of mind instead of emotional distress. Additionally, a lawyer is familiar with all the substantive and procedural rules, including the unwritten requirements. Finally, adversarial motions, like motions for turnover, are not uncommon in bankruptcy cases. Only a Georgia bankruptcy lawyer knows how to successfully resolve these matters.

Assess Monthly Income and Expenses

Schedules I and J are usually the most important parts of your voluntary petition. A proper interpretation of the data they contain usually directs your path in terms of the kind of bankruptcy to file.

If your expenses exceed your income, you need a fresh start. That’s what Chapter 7 provides. Ending credit card and other unsecured debt payments is the fastest way to get your family back in the black.

If your income exceeds your expenses, Chapter 13 is usually appropriate. Typically, these debtors fell behind on their obligations because of a previous financial storm, such as a job loss, that has now passed. Instead of paying everything at once, which is what moneylenders usually demand, Chapter 13 sets up these debtors on a gradual, income-based repayment plan.

Meet Eligibility Qualifications

All debtors must take a credit counseling class before they file. This class, which is usually available online, usually takes just a few minutes and costs only a few dollars.

Chapter 7 debtors must qualify under the means test. Their income must be below the average income for family size in that state. As of May 1, 2020, that amount is $87,371 for a family of four in Georgia. A Georgia bankruptcy lawyer can typically make some legal adjustments to your petition if your income is at or above this level.

Chapter 13 debtors must qualify on a formal and informal level. Formally, their secured debts cannot exceed $1.4 million and their unsecured debts cannot exceed $400,000. These amounts include current and past-due obligations. Additionally, their monthly surplus must be high enough to support a monthly debt consolidation payment, as outlined above.

Contact a Dependable Georgia Bankruptcy Attorney

Filing consumer bankruptcy could be the answer to your financial problems. For a free consultation with an experienced Georgia bankruptcy lawyer, contact Morgan & Morgan, Attorneys at Law, P.C. We routinely handle matters in Clarke County and nearby jurisdictions.