Your local Atlanta Chapter 7 bankruptcy attorney discusses what you will face when filing under this. Because of all of the new laws set forth in 2005, it is actually becoming more and more difficult to qualify for. Creditors began noticing a rising use of Chapter 7 bankruptcy to wipe debtors slates clean, simply because debtors didn’t want to pay rather than not being able to.
To file for an Atlanta Chapter 7 bankruptcy, it is necessary to pass the means test. This test takes into consideration the amount of debt you owe, your expenses, and your income. Income is a major factor in the means test. If you make more than the median income level in Georgia you may be required to file for a Chapter 13 bankruptcy, rather than Chapter 7. It is also required that you attend credit counseling either before, or during your proceedings to ensure that you will be able to make your payments once the bankruptcy is settled. Some other factors that are looked at for qualification are whether or not you’ve ever had a bankruptcy case dismissed, or have any history attempting to defraud creditors or bankruptcy courts.
One of the great things about filing for a Chapter 7 bankruptcy is that you will be protected from your creditors. This is called an automatic stay. Any liens, garnishments, or phone calls must be stopped at this time. The creditor may not attempt to collect debts from you by pursuing you personally. The creditors can only resume if your bankruptcy case has been dismissed.
It is highly recommended that you seek the help of an Atlanta Chapter 7 bankruptcy attorney before filing. You will need someone on your side to decrease the risk of having your case dismissed because of some minor error on paperwork, or failure to mention a small asset.
I recommend calling C. Golden & Associates today to set up a consultation, and discuss what chapter might be right for you.