Duluth and Gwinnett County Bankuptcy lawyer

404.791.4449

Duluth and Gwinnett County Bankuptcy lawyer

Filing for Chapter 7

 

Chapter 7 is the most prevalent type of bankruptcy in all of Georgia. It legally allows you to free yourself from common types of debts like credit card, medical bills and other unsecured debts. This also includes deficiencies, personal guarantees, mortgage, and foreclosure. In addition, any interest that was not yet paid on those debts will be considered as canceled.

 

Chapter 7 Exemptions

 

Chapter 7 Bankruptcy AttorneyAs a person filing for bankruptcy, Chapter 7 requires you to surrender all your assets in exchange of being set free from your financial debts. On the other hand, you can claim exemptions so your house and vehicle will not be taken away from you. Exemptions are assets that your creditors can't take in times of legal bankruptcy. You have to consult a lawyer about such exemptions since these may be different based on state or federal law.

 

When you file for bankruptcy under Chapter 7, it does not necessarily mean that you can keep your assets free of charge. Lien against the property like house or car makes you liable to pay the lender. Hence, lawyers normally advise their clients to catch up on delayed payments first before applying for Chapter 7 bankruptcy. Otherwise, your better option will be Chapter 13.

 

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Chapter 7 is inexpensive, but you have to pass a means test.

 

Chapter 7 typically is the better option and also the least expensive type of bankruptcy to file. However, not all people are qualified to file for Chapter 7. Your income must be below median income for the size of your household in order to pass the test. The only exception is when your business has a substantial amount of debts. If you don't pass the test and when your income is higher than the median income, you will be forced to file for Chapter 13.

 

The test will start with the computation of your average gross income for the last 6 months before you filed your bankruptcy application. However, this is entirely different from income tax purposes. Necessities such as rent, transportation and utilities expenses will not be deducted. IRS collection standard deductions are used instead of your actual expenses. Whatever amount is left after the allowable expense deductions will be your disposable income.

 

Bankruptcy Lawyer in Duluth and all of Gwinnett County

 

The process of determining what type of bankruptcy you are entitled to, the exemptions that you can avail, and if Chapter 13 is better suited for you is not easy.

 

Attorney Keith Cornwell of Cornwell Law Firm will ask you many questions during the initial consultation. Prepare your honest and accurate answers so the lawyers will be able to give you proper legal advice about your financial situation. Remember that each person and every business entity is different. Our attorney will try his best to determine your eligibility for Chapter 7. Additional details may be required for you to pass the means test.

 

Don't be alarmed when the lawyers ask about your assets and debts. This is a normal part of the proceedings in order to know the types of exemptions that are available for you. You will also have to disclose information about the payments that you made to your creditors.

 

Atty. J. Keith Cornwell will explain every step of the bankruptcy process: the details that you need to disclose with the law firm, the things that you have to expect after filing for Chapter 7, the reasons why your creditors must stop asking for payment once you filed the petition, the things that will happen during the meeting with your creditors, the span of time that your debts will be discharged, the costs, and many more.

 

It is true that Chapter 7 bankruptcy gets rid of your debts. More importantly, it also relieves your stress and humiliation by dealing with your debts which are impossible to settle.

 

Let attorney Keith Cornwell discuss all your concerns via a free consultation.. Give us a call at (404) 791-4449 or fill out our contact form.

 

Cornwell Bankruptcy is a law firm that specializes in debt relief and management. We are here to help people file for bankruptcy in accordance with the Bankruptcy Code.

 

Unsecured debts definition

In some debts, the promise to repay is backed by some kind of property, such as a car or piece of furniture, that would be reposesed upon failure to pay. That property is called collateral. An unsecured debt is one that has no collatoral to back it up.