When you file bankruptcy, you get a fresh start. What happens when you file bankruptcy in GA can be a fresh start for you and your family.

If you are considering bankruptcy, you are definitely not alone. The financial storms of life, such as serious illness, divorce, and job loss, strike everyone sooner or later. Most families do not have the resources to weather these storms. When they hit, you can hope things get better. Or, you can take control of your own financial future.

An Athens bankruptcy lawyer is an invaluable partner throughout this process. Only an attorney can evaluate you case and give you solid advice about your bankruptcy and non-bankruptcy options. Furthermore, only an Athens bankruptcy lawyer can stand up for your legal and financial rights. Finally, an attorney helps you recover from bankruptcy faster than you ever thought possible.

What Is the Automatic Stay?

When a financial storm hits, moneylenders typically have very little patience. And, they are able to act quickly. For example, in Georgia, the bank does not need a court order to seize and sell your home. Section 362 of the Bankruptcy Code is the only effective way to stop adverse actions like:

• Eviction,
• Lien placement,
• Foreclosure,
• Wage garnishment,
• Repossession, and
• Creditor lawsuits.

Debtors do not need to show lender fraud or negligence to take advantage of the Automatic Stay. In most cases, it is, well, automatic.

In a Chapter 13, the Automatic Stay lasts up to five years. In a Chapter 7, the Automatic Stay lasts until the judge discharges crippling unsecured debts. More on that below.

Using Georgia Property Protection and Asset Exemption

Property protection is an essential part of bankruptcy’s fresh start. If debtors lost most or all of their assets, they would be pushed back behind the starting line. Losing all your assets is not what happens when you file bankruptcy. Bankruptcy protects things like:

• House,
• Car,
• Personal property,
• Retirement account,
• Government benefits, and
• Current wage income.

Furthermore, an Athens bankruptcy lawyer can use legal loopholes to protect even more of your property.

The best interests of creditors rule is a good example. Assume Peter has a fishing boat. Boats of a similar age are selling for about $1,000 in Peter’s area. The trustee (person who oversees the bankruptcy for the judge) considers seizing the boat and liquidating it. In preparation, the trustee budgets $500 for boat repairs and $500 for sales costs, mostly storage costs.

Given these facts, the trustee cannot legally seize Peter’s boat, even if it is nonexempt. The sale would produce little or nothing for creditors. So, a seizure would not be in their best interests.

Georgia Bankruptcy Debt Discharge

“Discharge” means the judge erases the legal obligation to repay a debt. Unsecured debts, like medical bills and credit cards, are usually always dischargeable. Nevertheless, an Athens bankruptcy lawyer plays an important role in this process.

Discharge does not eliminate the collateral consequences of debt, like a tax lien. An Athens bankruptcy lawyer must deal with such matters separately. Failure to do so compromises your fresh start.

Speaking of past-due income taxes, these obligations are priority unsecured debts. So are student loans and a few other unsecured obligations. An Athens bankruptcy lawyer must take special action to obtain a discharge.

On a related note, if you have a security clearance, financial problems could trigger adverse action. After the Automatic Stay expires, an attorney can protect your rights.

There are very specific discharge rules in this area. Not everyone is eligible for full relief. However, even in these cases, an Athens bankruptcy lawyer can typically at least obtain a partial discharge. That’s because an attorney is a good negotiator as well as a good litigator.

How an Athens Bankruptcy Lawyer Can Stand Up for You

An Athens bankruptcy lawyer can stand up for you if the trustee, or a creditor, alleges that a debt was fraudulent. These obligations are nondischargeable as a matter of law. Essentially, transactions are fraudulent if the debtor made them while anticipating bankruptcy and had no intention of repaying them. The creditor or trustee has the burden of proof to establish these allegations ion court.

Your fresh start is waiting for you. If you’re wondering what happens when you file bankruptcy, you’re ready for a free consultation with an experienced Athens bankruptcy lawyer at Morgan & Morgan, Attorneys at Law, P.C. 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.