In most cases, bankruptcy filers in Athens, GA pay for bankruptcies. The filing fee varies in different jurisdictions, but it is normally about $350 in a Chapter 7 and $300 in a Chapter 13. Judges often waive these fees if the debtors earn less than 150 percent of the poverty line amount. Additionally, judges often allow debtors to pay the filing fee in installments.

To further reduce the cost, some debtors file their own petitions or work with bankruptcy petition preparers. Filing your own bankruptcy is roughly like filing your own taxes if you operate an LLC and you do not look at the IRS instructions. That’s an almost impossible task. Bankruptcy petition preparers can only fill out forms. They cannot tell you how to fill them out, interface with creditors on your behalf, or represent you in court.

Because of these drawbacks, an Athens, Georgia bankruptcy lawyer is a very wise investment. Like the Bankruptcy Court, most attorneys offer convenient installment payment plans. Furthermore, the peace of mind you get from this partnership cannot be quantified in dollars and cents.

Automatic Stay

If bankruptcy did nothing else, Section 362 of the Bankruptcy Code would probably be worth the price you pay for bankruptcy. No other legal provision automatically stops all creditor adverse action, such as:

• Eviction (in most cases)
• Foreclosure
• Wage garnishment
• Repossession
• Collection lawsuits
• Harassing collection techniques

Bankruptcy lawyers in Athens, GA will confirm that courts usually enforce the Automatic Stay very strictly. Creditors can only bypass it in extreme circumstances, such as a threat to the collateral (e.g. “I’m going to drive my car off a cliff”). Even if the debtor is seriously delinquent, that fact alone usually does not cause judges to lift the stay.

Generally, the Automatic Stay remains in effect until the judge closes the bankruptcy. That could be up to five years.

Asset Protection

Bankruptcy does more than stop adverse action. It’s also the only way to stop creditors from taking you to court and seizing your assets in order to pay your debts. Athens, GA has some of the broadest asset exemptions in the United States. They include:

• Home equity
• Motor vehicle
• Personal property
• Current wages
• Retirement account
• Government benefits

A number of Georgians have nonexempt assets, like additional motor vehicles or a small lake cabin. The best interest of creditors rule protects these assets.

Assume Lisa has a slightly-banged-up bass boat she often takes to Bear Creek Lake. Georgia’s bankruptcy exemptions might not apply to the boat, but Georgia’s bankruptcy laws still protect it. In order to sell it, the trustee (person who oversees the bankruptcy for the judge) must first seize the boat, repair it, store it, and market it. The trustee, not Lisa, pays for this part of the bankruptcy. 

By the time the trustee pays all these costs, Lisa’s creditors will, at best, only receive a few dollars each. They might even lose money on the transaction. In either case, the seizure and sale is clearly not in their best interests. So, these actions are illegal in Georgia. 

Athens, GA Bankruptcy Lawyers and Debt Discharge

The Automatic Stay gives debtors the time they need to catch up on past-due secured debts, such as home mortgages and vehicle loans. At the end of the bankruptcy, the judge automatically discharges most unsecured debts, such as medical bills and credit cards.

Some debts are only dischargeable in certain situations. This is where it really pays to have an Athens, GA bankruptcy lawyer. 

Student loans are a good example. When Congress amended the Bankruptcy Code in the 1970s, it limited student loan discharge to “good cause” discharges. The Eleventh Circuit, which includes Georgia, defines this phrase as:

• Loan repayment would force the debtor to live below the poverty line
• The debtor has made a good faith effort to repay the loan
• A significant physical or other hardship exists

These prongs are quite subjective, except for the first one. Only a bankruptcy lawyer in Athens, GA can effectively advocate for you in these situations. Despite the apparent harshness of this rule, attorneys are typically able to obtain at least partial student loan discharges.

Reach out to Our Knowledgeable Bankruptcy Lawyers in Athens, GA

Debtors pay for bankruptcies, and bankruptcy is worth the money. For a free consultation with an experienced bankruptcy lawyer in Athens, GA, contact Morgan & Morgan, Attorneys at Law, P.C. at (706) 843-2905. Convenient payment plans are available.