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Frequently Asked Questions
We ask that clients bring a completed intake form, proof of income, photo ID, and social security card, and any pending lawsuit information to their initial consultation. This information helps us to prepare better to serve your bankruptcy case needs. We have provided some basic information and answers to frequently asked questions for you.
Chapter 7 Bankruptcy Prices and Terms
Chapter 13 Bankruptcy Prices and Terms
Additional Requirements of the New Bankruptcy Law
Payment of Fees
What is Chapter 13 bankruptcy?
Who determines how much my Chapter 13 payments will be?
Will I be able to keep all my property?
Who can file a Chapter 13 bankruptcy?
How long will a Chapter 13 Plan last?
What are the most common causes of Chapter 13 bankruptcy?
Can I stop the bill collectors from calling?
I am married; does my spouse also have to file bankruptcy?
Will I lose my job?
What happens to my real property and other assets?
Can I keep my home and personal property?
Can I keep my car after bankruptcy?
Will bankruptcy stop a wage garnishment?
Will bankruptcy stop a foreclosure?
Will bankruptcy stop an eviction action?
Will bankruptcy stop a judgment?
I am divorced; will bankruptcy wipe out my obligation to pay joint debts?
I am a co-signer for a debt; how does bankruptcy affect my obligation?
Who notifies the creditors and bill collectors?
Do I have to fill out forms?
Do I have to go to court?
What happens after I file my bankruptcy?
Who deals with creditors and bill collectors during the bankruptcy?
What happens if I forget to list a creditor on my bankruptcy papers?
What happens to my credit rating after a Chapter 13 bankruptcy?
Can I get credit after a Chapter 13 bankruptcy?
How do I re-establish my credit after bankruptcy?
Is there anything I should not do if I am contemplating bankruptcy?
What is Chapter 7 bankruptcy?
What property is exempt; what can I keep?
Who can file Chapter 7 bankruptcy?
Is it true that I can wipe out all of my bills?
Can I keep my home and personal property?
Can I reduce the interest rate on my high interest loan?
Can I discharge some of my debt without paying it back in full?
What happens to my credit rating after a Chapter 7 bankruptcy?
Chapter 7 Bankruptcy Prices and Terms
To begin the process of filing Chapter 7 personal bankruptcy, most clients are required to pay the court filing fee and a portion of the attorney fees upfront.
You can pay the balance in the form of a post-dated check in most cases.
Call our office and find out the current bankruptcy filing fees in Georgia.
Chapter 13 Bankruptcy Prices and Terms
In order to retain your assets and reorganize your debt in a Chapter 13 bankruptcy filing, you typically will need only the filing fee to start the process. You can usually pay the balance of your attorney’s fees with payments over time.
Additional Requirements of the New Bankruptcy Law
The recent change to the United States bankruptcy law requires that a person MUST attend a credit counseling session before he or she files a bankruptcy case. These counseling sessions can only be completed through one of the approved court agencies in person, over the phone, or online.
These agencies typically charge a $50 fee for this required service. The agency can fax, mail, or email your certificate to you and your attorney once you have completed the counseling session. Saedi & Wells, LLC, can explain how these requirements will affect your case and invite you to learn more about the changes in United States bankruptcy law.
Payment of Fees
We accept cash, money orders, debit cards, and credit cards. Please note that we may only accept credit cards from a third party because bankruptcy law does not allow an individual to the use a credit card to pay for his or her bankruptcy fees. If you wish to use a third party credit card, please make sure the individual is with you at your appointment for verification.
What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy is a debt repayment procedure. The debtor turns over a specified portion of his/her future earnings to the Chapter 13 trustee, who distributes dividends to creditors who have filed claims. The Chapter 13 Plan, which the debtor files with the Bankruptcy Court, determines how the money is distributed.
Who determines how much my Chapter 13 payments will be?
The Court determines the amount of your Chapter 13 payments based on your income, monthly living expenses, and the amount of your debts. A Bankruptcy Court will allow you to keep and spend as much of your income as necessary to maintain a reasonable standard of living. You only use disposable income over and above normal living expenses will to repay debt.
Will I be able to keep all of my property?
Yes, if you want to. By filing a Chapter 13 Plan, you arrange for the repayment of debts and the liens on your property. A debtor may want to surrender a particular asset in order to get rid of a debt. In some cases, you may get rid of a car, TV, or appliance that does not work by returning it to a creditor in full or partial debt satisfaction.
Who can file a Chapter 13 bankruptcy?
You must reside or have a domicile, place of business, or property in the U.S. or a municipality. In order to file in Georgia you must have lived in the state within the past 180 days. You must not have had a bankruptcy filing dismissed with prejudice within the last 180 days. It is necessary to prove you have regular income and your debts do not exceed $750,000 in secured debt or $250,000 in unsecured debt.
How long will a Chapter 13 Plan last?
The Bankruptcy Court develops bankruptcy plans that last up to 36 or 60 months. The court then discharges (forgives) all the debtor’s debts, providing that he or she has made all trustee payments.
What are the most common causes of Chapter 13 bankruptcy?
The most common reasons for consumer bankruptcy are (a) loss of a job or long-term layoffs; (b) loss of overtime hours; (c) lengthy illnesses and large medical expenses; (d) death or disability of a spouse; (e) separation, divorce and marital problems; (f) seriously over extended credit; and (g) large unexpected expenses.
Can I stop the bill collectors from calling?
One of the major benefits of filing for protection under Chapter 13 is that bankruptcy stops all creditor actions. This means that they must halt all debt collection efforts and foreclosures immediately. Chapter 13 also protects co-debtors or co-signers from collection activity while you are making your payments.
I am married; does my spouse also have to file bankruptcy?
No. In some cases where only one spouse has debts or one spouse has debts that are not dischargeable, it might be advisable for only one spouse to file.
Will I lose my job?
No. Bankruptcy laws prohibit discrimination based on a debtor filing for protection.
What happens to my real property and other assets?
A debtor turns over his or her current property and promises certain future property to the bankruptcy estate once he or she files for Chapter13 bankruptcy. This means that the bankruptcy trustee takes control of all non-exempt property to satisfy the creditors. Once the court approves a Chapter 13 Plan it returns control of all your property to you, except for future wages.
Can I keep my home and personal property?
Yes. One of the main reasons for filing a Chapter 13 bankruptcy is to keep your home. Your Chapter 13 Plan will usually provide that you begin making your current monthly payments and not get any further behind. You also make any delinquent payments to the mortgage company through the Chapter 13 trustee.
Can I keep my car after bankruptcy?
Yes. If a creditor mortgages your car as security for a loan, the court expects you to pay an amount to the creditor at least equal to the car’s value at the time you file your Chapter 13 Plan. You will pay any amount due to the creditor over the value of the car as an unsecured debt.
Will bankruptcy stop a wage garnishment?
Yes. (Except for regular monthly child support payments)
Will bankruptcy stop a foreclosure?
Yes. A home is an asset usually secured by a mortgage. While a Chapter 13 will stop a foreclosure, the court give a creditor permission to institute a new foreclosure proceeding unless you begin making current payments. You can catch up your arrearages under Chapter 13 and avoid foreclosure of your home if you can make your monthly payments.
Please note that if you have filed two bankruptcy cases within the last 12 months the automatic stay will NOT apply without an order from the court. A foreclosure conducted prior to this order imposing the stay will be valid.
Will bankruptcy stop an eviction action?
If a court has granted an eviction, it will be extremely difficult to prevent. Chapter 13 can delay eviction only prior to an eviction judgment.
If you do not stay current on payments from the date of filing Chapter 13 forward, the property owner can ask the Bankruptcy Court to allow eviction proceedings in state court. You can catch up on back rent through the Chapter 13 Plan if you can maintain payments.
Please note: at the end of a lease, the property owner has the option NOT to renew.
Will bankruptcy stop a judgment?
Yes. Bankruptcy stops most civil judgments.
I am divorced; will bankruptcy wipe out my obligation to pay joint debts?
YES, in some cases bankruptcy will eliminate your obligation to pay joint debts. You will discharge these debts if your Chapter 13 Plan provides for payment of these obligations in full.
However, if your Plan does not provide for payment in full, the Bankruptcy Code does not discharge these obligations at the end of your Chapter 13 Plan. You will still have to pay them outside of Bankruptcy Court.
Creditors cannot collect the joint debts from you or your former spouse directly while you are in Chapter 13.
I am a co-signer for a debt; how does bankruptcy affect my obligation?
You must provide for payment under your Chapter 13 Plan if the debt is primarily yours. If the debt is primarily that of the co-debtors, you may include the debt under your Plan if you choose or provide that they will pay their debts. The court order protects co-debtors, outside of Bankruptcy Court, while you are in Chapter 13.
Who notifies the creditors and bill collectors?
The Bankruptcy Court mails a notice to all the creditors listed in your schedules after you file. The notification usually takes about a week to ten days. Your attorney can inform the creditors immediately if this is not soon enough.
Do I have to fill out forms?
Yes. You will receive a detailed questionnaire to complete from our office. It is important that you answer all the questions even if many of them do not apply to you or your situation.
You will be required to list ALL of you property and ALL of your debts. The judge will ask you at the initial court appearance, under oath, if you have listed all property and all debts. You must be able to answer that you have truthfully.
Your attorney will ask you to complete a questionnaire and he or she will base the bankruptcy petition and schedules on that information. You must follow the local and federal bankruptcy court rules in completing the forms. Preparing these forms requires an understanding of both bankruptcy law and local state law to enter the information correctly and accurately. The forms have to be typed and a certain number of copies must be included with the filing, which can include between 30 and 60 pages.
After your attorney has prepared the bankruptcy petition, you or you and your spouse (if filing jointly) review them and, if they are correct, sign them. Your attorney will forward them to the Court along with the necessary fees.
Do I have to go to court?
Yes. You will have to attend a meeting, presided over by the trustee or the Bankruptcy Administrator, within 30 to 45 days of filing bankruptcy. We call this hearing the First Meeting of Creditors or Section 341 Meeting.
The trustee and/or Bankruptcy Administrator use this meeting to ask you questions regarding the content of your bankruptcy papers, assets, debts and other matters under oath. Your creditors will also have an opportunity to ask you questions about the location and condition of property, hazard insurance coverage, and matters related to your financial affairs.
Do not worry. Your attorney is present to represent you and will help you to prepare for the hearing. After the hearing is over, your creditors may approach your attorney to discuss secured property or your desire to retain a credit card. Your attorney can negotiate with them if you approve.
The court will not normally require you to return after this hearing is over unless a creditor files a motion or adversary action. Only your attorney is qualified to determine if this likely to happen. Generally, debtors will only need to appear in Bankruptcy Court once.
What happens after I file my bankruptcy?
The Bankruptcy Court will order you to make the payments that you proposed in your Plan to the Chapter 13 Trustee. The Court will also set a date for your Section 341 Meeting and for a hearing on confirmation (approval) of your Plan. Sometimes the court combines these hearings.
The court then requires you make the payments that you proposed to the Chapter 13 Trustee and keep your home mortgage or rent from getting any further behind. After you complete all your payments, the court will issue a discharge that relieves you from any further obligation on the debts your Plan covered.
Who deals with the creditors and bill collectors during the bankruptcy?
Your attorney and the Chapter 13 Trustee deal with your creditors for you. Refer all creditors and bill collectors to your attorney or to the Chapter 13 Trustee.
What happens if I forget to list a creditor on my bankruptcy papers?
You can file an amendment to your schedules up to a certain time before discharge. If you file the amendment in time, the court adds the omitted creditor to the bankruptcy. It is perjury to omit a creditor intentionally. However, if you do not know that a creditor exists and there are no assets available the court may discharge the debt.
What happens to my credit rating after a Chapter 13 bankruptcy?
The bankruptcy is a judgment and a credit report may list it up to 7 years. Many debtors damage their credit rating with late payments, repossessions, lawsuits, foreclosures, and other debt problems prior to filing bankruptcy. Credit reports also list these delinquencies for up to 7 years.
An uncompleted Chapter 13, that a court dismisses, will remain on your credit report for 10 years.
Can I get credit after a Chapter 13 bankruptcy?
Surprisingly-- Yes. This is up to each particular credit grantor. It is possible to get credit if the credit grantor believes and understands your reasons for filing bankruptcy. Many creditors realize that you are virtually debt free after a bankruptcy yet maintain most of your previous income and assets.
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How do I re-establish my credit after bankruptcy?
There are at least two ways to re-build credit after a bankruptcy. First, one of your existing creditors may continue to grant you credit based upon your past with them. Second, several banks offer secured credit cards and base credit limits on the security (cash) given to the card issuer.
There are people who "specialize" in the business of credit repair. BEWARE. Some of the schemes they offer you are not only worthless they may be illegal. You will almost certainly receive at least one solicitation from one of these "professionals” and must consult your attorney before agreeing to any credit repair programs.
Is there anything I should not do if I am contemplating bankruptcy?
There are several areas related to this question. You should consult your attorney. In particular, these are some items worth mentioning.
a. Under bankruptcy law, the court presumes certain luxury purchases over $1,000 within days of the bankruptcy filing are non-dischargeable.
b. Under bankruptcy law, the court presumes cash advances totaling $1,000 within 90 days of the bankruptcy filing are non-dischargeable.
c. Debts involving materially false financial statements are non-dischargeable under certain circumstances.
What is Chapter 7 bankruptcy?
Chapter 7 bankruptcy is a liquidation proceeding. The debtor turns over all non-exempt property to the bankruptcy trustee who converts it to cash and uses it to pay creditors. The debtor receives a discharge of all dischargeable debts.
What property is exempt; what can I keep?
Bankruptcy exemptions are covered by Federal or state non-bankruptcy law. These exemptions differ from state to state. Once you come into our office an we determine what state applies to you we can give you a list of exemptions and see which ones apply.
Who can file a Chapter 7 bankruptcy?
You must reside or have a domicile, place of business, or property in the United States or a municipality. The court cannot have granted you a Chapter 7 discharge within the last 8 years. You also cannot have completed a Chapter 13 Plan within the last 6 years that repaid less than 70 percent of your debts to unsecured creditors.
Is it true that I can wipe out all of my bills?
The underlying policy of bankruptcy law is that an honest debtor who is in debt beyond his or her ability to repay deserves a fresh start with the discharge of debts in a bankruptcy proceeding. However, not all debts are dischargeable. The court will not discharge the following debts in most bankruptcy proceedings:
a. Debts that the Bankruptcy Court has determined to be non-dischargeable as the result of debts created through false pretenses or misrepresentations, for money or property obtained by fraud, or for damages arising from willful and malicious injury to property;
b. Certain taxes are non-dischargeable. For example: Income taxes for taxable years 3 years before filing of petition; Property taxes payable within 1 year before filing of petition; Withholding taxes; Employment taxes for which a return is due within 3 years before filing of petition; Excise taxes for which a return is due within 3 years before filing of petition; Customs duties on merchandise entered into country within 1 year before filing of petition;
c. Unscheduled debts, which are debts you fail to list on the schedules;
d. Debts owed to a spouse, former spouse, or child for alimony, maintenance, and support or incurred as the result of a property settlement agreement;
e. Debts for fines, penalties, restitutions, or forfeitures payable to a governmental unit or as the result of a criminal conviction;
f. Debts resulting from damages, injuries, or death due to driving while intoxicated;
g. Debts for certain educational or student loans guaranteed by a governmental unity, incurred within 7 years of filing of the petition unless the repayment will impose and undue hardship as determined by this Court;
h. Debts that you owed before a previous bankruptcy case in which the court denied you a discharge;
i. Secured debts which you agree to keep and reaffirm with the creditor;
j. Judgments a petitioner obtained against you for breach of fiduciary duty.
Those debts that creditors have security for that you do not reaffirm and agree to keep, the court will discharge. The creditor will probably take the legal steps necessary to retrieve the property.
Can I keep my home and personal property?
The debtor does not give up any property in most cases.
As for your home, in Georgia each property owner is entitled to an exemption for $10,000 worth of equity ($20,000 for husband and wife). Equity is the difference between the value of your home and the mortgage or mortgages owed, and the cost of selling the home.
When calculating your equity you base the value of your home on a forced liquidation (sale) as opposed to the best selling conditions. Then subtract the amount owed, and the cost of selling from the value to calculate the equity.
In most cases, few debtors risk losing their home to the Bankruptcy Court. The trustee is usually willing to discuss a sale of the excess equity and a short-term repayment plan with debtors if there is any equity left after these calculations.
If you own real property that is not your home it may not be exempt and will probably be subject to sale. The debtor can buy the property back from the trustee, of course. We strongly encourage all clients contemplating a Chapter 7 filing to have a professional appraise their property to ensure that their equity is within the required guidelines.
Remember that the tax assessment you receive each year usually DOES NOT reflect the correct fair market value of your property.
Can I reduce the interest rate on my high interest loan?
You may be able to lower the interest rate on a secured loan, other than a mortgage loan, to around prime plus two in some circumstances. To qualify, the purchase date would have to be at least two years prior to filing bankruptcy.
Can I discharge some of my debt without paying it back in full?
You may be allowed to pay a portion of your unsecured debt back at a lower percentage (from 1%-99%) depending on your financial situation at the time of filing. An experienced attorney analyzes your case and informs you of what percentage the law requires you to repay creditors.
What happens to my credit rating after a Chapter 7 bankruptcy?
The Chapter 7 bankruptcy is a judgment and credit reports may list it for up to 10 years. Many debtors file bankruptcy when late payments, repossessions, lawsuits, foreclosures, and other debt problems have already damaged their credit rating. Credit reports also list these delinquencies up to 10 years.
Call 1 888 325-6798 to discuss fees with a bankruptcy law firm in Georgia.
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