Athens Georgia Bankruptcy Lawyers | GA Debt Relief Attorney

Athens, GA Bankruptcy discharge

In a Chapter 7 bankruptcy, the individual files a petition in the court seeking to discharge all debts. The individual may have secured debt as well as unsecured debt and how each of these is handled can change from case-to-case. An individual seeking protection under chapter 7 of the United States Bankruptcy Code may have to give up a part of his or her assets in order to satisfy some of the debts owed to the creditors.

The common grounds for denying a discharge to an individual debtor in Athens, GA include:
1. The debtor failed to keep or produce adequate books or financial records;
2. Failure of the debtor to explain satisfactorily any loss of assets;
3. The debtor committed a bankruptcy crime such as perjury;
4. Debtor’s failure to obey a lawful order of the bankruptcy court; or
5. The debtor fraudulently transferred, concealed, or destroyed property that would have become property of the estate.

The Chapter 13 debtor in Athens, GA is eligible to obtain a discharge upon successful completion of all payments under the Chapter 13 plan. In return for the willingness of the Chapter 13 debtor to maintain the discipline of a repayment plan for three to five years, a wider discharge is available under Chapter 13 than in a Chapter 7 case.
Generally, the debtor in Athens, GA is discharged from all debts under the plan or debts that are rejected, except for the following:
1. Some long-term obligations such as a home mortgage;
2. Alimony and Child support;
3. Debts for most government-funded or guaranteed educational loans or benefit overpayments;
4. Debts arising from death or personal injury caused by driving while intoxicated or under the influence of drugs, which also refers to debts for restitution or a criminal fine included in a sentence on the debtor’s conviction of a crime.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Athens, GA Chapter 20 Bankruptcy

Most of your debts will be discharged by bankruptcy. A debt discharged in bankruptcy is no longer enforceable against you personally. You are no longer required to pay the debt, or the portion of the debt that has been discharged. You cannot be subject to collection activity on the debt, including being sued on the debt. Creditors can, however, take steps to seize any collateral on which there is a valid lien that has not been discharged (or cleared) by the bankruptcy court. A bankruptcy discharge will erase the debt and give the debtor a fresh start financially. Some debts must still be paid. It is a rather lengthy list, but these debts will not be discharged: taxes; spousal and child support; debts arising out of willful misconduct and or malicious misconduct by the debtor; liability for injury or death from driving while intoxicated; non-dischargeable debts from a prior bankruptcy; student loans; criminal fines and penalties and forfeitures. Bankruptcy does not free the debtor from debts incurred for money, property, services, or an extension, renewal, or refinancing of credit, to the extent obtained by false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor’s or an insider’s financial condition.

A so-called “Chapter 20″ bankruptcy is the process filing of a “Chapter 7″ bankruptcy to discharge unsecured debts, followed by a “Chapter 13″ bankruptcy to allow the debtor to catch up on mortgage payments The 2005 Bankruptcy Reform Act attempts to limit “Chapter 20″ bankruptcies by setting limits on the filing of successive bankruptcies. Under current bankruptcy law a Chapter 13 bankruptcy can be filed only once every two years, and three years must be over after the filing of a Chapter 7 bankruptcy before a Chapter 13 filing. Few debtors try to overcome this law by filing for Chapter 13 protection while the Chapter 7 petition is still pending. This option is not available in all courts. In a “Chapter 20″ bankruptcy, debtors should be aware that missing even a single mortgage payment after filing the initial “Chapter 7″ petition can cost them their ability to save their home in a subsequent “Chapter 13″ filing. Be warned: some judges and creditors consider the move as a scam. Creditors have the right to object and the judge can toss the action. Few judges will allow the second filing, if there is a legitimate reason.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Chapter 11 Bankruptcy in Athens, GA

Federal bankruptcy laws decide how companies in Athens, GA go out of business or recover from deep debt. A bankrupt company can file under Chapter 11 of the US Bankruptcy Code to reorganize its business and try to become profitable again. Management continues to run the day-to-day business activities, but all major business decisions should be approved by a bankruptcy court.

Chapter 11 allows a debtor to enter into an agreement with creditors under which all or a part of the business continues. The debts of the business are restructured so as to allow the debtor to continue his operation of the business. In general any partnership, corporation or limited liability entity except a governmental unit may be a debtor in a Chapter 11 case in Athens, GA. Under Chapter 11, only the debtor can submit a plan of reorganization within 120 days of the initiation of the bankruptcy case. Under a typical reorganization plan, the debtor attempts to restructure the debts. Such a plan will generally include the repayment of loans secured by real estate to be paid over an extended time. Intermediate term loans will be proposed to be paid over the remaining useful life of the security, which is generally five to ten years.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Bankruptcy and Tax in Athens, GA

If you are an individual debtor in Athens, GA filing for bankruptcy under chapter 7 or 11 of the US Bankruptcy Code in , an independent ‘‘estate’’ is created consisting of property that belonged to you prior to the filing date. This bankruptcy estate will be a new taxable entity, totally independent from you as an individual taxpayer.

A penalty for failure to pay tax, including failure to pay estimated tax, will not be imposed for any period during which a title 11 bankruptcy case is pending provided:
1. The tax was incurred before the earlier of the order for relief or (in an involuntary case) the appointment of a trustee, and
2. The bankruptcy case was filed before the due date for the tax return (including extensions) or the date for imposing the penalty occurs on or after the day the bankruptcy case was filed.

This relief from the failure-to-pay penalty does not apply to any penalty for failure to pay or deposit tax withheld or collected from others and required to be paid over to the United States government. It does not apply to any penalty for failure to timely file a return.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Athens, GA Chapter 11 and 13

A debtor under Chapter 11 in Athens, GA can enter into an agreement with creditors under which all or a part of the business continues. The debts of the business are restructured so as to permit the debtor to continue the business operation. In general any partnership, corporation or limited liability entity except a governmental unit may be a debtor in a Chapter 11 proceeding. Under Chapter 11, only the debtor may submit a plan of reorganization within 120 days of the filing of the bankruptcy case. Under a typical reorganization agreement, the debtor attempts to restructure the debts. Such a plan will generally include the repayment of loans secured by real estate to be paid over an extended time. Intermediate term loans will be proposed to be paid over the remaining useful life of the security, which is typically five to ten years.

Chapter 13 bankruptcy proceeding in Athens, GA permits the individual debtor to pay down his debts, either whole or a part of it, using a payment plan under the supervision of the court. Debtors filing under this chapter can retain their assets with them while they stick to the plan or after they have cleared the required portion of debt. This chapter involves the rehabilitation of the debtor to allow him or her to use future earnings to pay off creditors.

A chapter 13 bankruptcy is also referred to as a wage earner’s plan. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 is especially for individuals with regular income who want to pay their debts but cannot to do so in a timely method. The purpose of this chapter is to allow financially distressed individual debtors to propose and carry out a repayment plan under which creditors are paid over an extended period of time usually three to five years. The creditors are forbidden from starting or continuing collection efforts during this time.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Athens, GA Chapter 11

Federal bankruptcy rules determine how corporations go out of business or recover from deep financial crisis. A bankrupt company may file under Chapter 11 of the Federal Bankruptcy Code to reorganize its business and try to become profitable again. The company continues to operate the daily business operations, but all major business decisions should be approved by a bankruptcy court.

If you own a business or corporation n Athens, GA Chapter 11 is a reorganization proceeding to consider. There are special requirements you have to meet. Some individuals whose debts are larger than the limits of Chapter 13 may file Chapter 11. In Chapter 11, the debtor generally continues in possession of assets and continues to operate any business, under the supervision of the court and the creditors committee. The debtor proposes a plan of reorganization to the creditors, who vote on it. If the majority accept it, the court will confirm the plan and it becomes binding on you and your creditors. Plans may call for repayment out of future income or sales of some or all of the assets.

In chapter 11 proceedings in Athens, GA the United States trustee, a federal employee, can not act as a case trustee, who is usually a private individual. The US trustee is responsible for monitoring all chapter 11 proceedings and has mandate to appear and be heard on any issue in any case, but can not submit a plan. The case trustee, however, is responsible for management of the property of the estate, management of the debtor’s business, and, if necessary, the submission of a plan of reorganization. Section 1106 of the Federal Code authorizes the trustee to file a plan “as soon as practicable” or, alternatively, to submit a report detailing the reasons a plan will not be filed or to recommend that the case be converted to another chapter or dismissed.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Medical Bills and Bankruptcy in Athens, GA

Medical bills from a temporary illness or bills due to chronic health problems bring many people to the edge of financial downfall in Athens, GA. Even in situations with the best medical insurance available, taking time off of work and loss of income can adversely affect a person’s finances. If you have substantial medical bills, filing a Chapter 7 Bankruptcy can eliminate your medical bills completely. If the bankruptcy means test determines you qualify to file for Chapter 7, it will allow you to get rid of medical bills, hospital charges, doctor bills, medical collections, dental bills, and also most type of medical debt. Medical bills are considered unsecured debts, and will be considered in bankruptcy similar to credit cards. So, medical bills can be totally discharged in a Chapter 7 Bankruptcy.

Filing a bankruptcy case in Athens, GA prevents creditors from initiating action against you. What prohibits creditors from taking steps is the automatic stay – an injunction passed by the court as soon as you file the case. This automatic stay continues until the case is over. On motion, and after a hearing before the bankruptcy judge, a creditor can get an order for relief from the stay. An order granting relief from the automatic stay permits a creditor to take certain permitted actions, which will be listed in the order, to collect a debt against you.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Athens, GA Bankruptcy Lawyer

The bankruptcy lawyer’s job in Athens, GA is difficult, and a lot of responsibility for ensuring checks is put on the attorney. The attorney’s signature certifies that the petition has been reasonably inspected, and the proceeding does not abuse the bankruptcy process. The attorney should also certify that the proceeding is acceptable under the existing law or that it is a good faith argument for the extension/modification of the existing law. In case of a violation, the lawyer fees and the debtor cost can be calculated and made payable to the trustee.
You first consultation with your bankruptcy lawyer in Athens, GA is generally free. At the first meeting, you must honestly explain your situation to the lawyer and try to determine if you are comfortable with the attorney and their staff. At the same time the attorney will give you feedback on your situation and your options available.
When conversing with the attorney in Athens, GAcheck how long he or she has been in practice, what the specifics of their specialization are, approximately how many cases they have handled and what your expectations should be from the attorney in terms of representation. Also find out if the attorney will be personally attending to your case and that it is not passed on to a junior attorney or staff. Ask as many questions as you need and make sure that you are comfortable with the fact that you are appointing him as your bankruptcy lawyer.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Athens, GA Bankruptcy Chapters 11 and 13

An ordinary person can file under chapter 11 in Athens, GA but, the provisions of chapter 11 are often used to reorganize a business. Chapter 11 allows the debtor to run its business through a plan of reorganization, which should fulfill certain statutory criteria. By legislating chapter 11, the Congress provided the debtor a chance to restructure its finances so that it can continue to operate, provide employment, pay its creditors, and produce a return for its stockholders.

In situations where the bankruptcy means test says that you cannot file for Chapter 7 Bankruptcy in Athens, GA you may instead opt to file for Chapter 13 Bankruptcy. A Chapter 13 Bankruptcy is a court administered payment plan that will permit you to keep your most important property while repaying your debts over a period of time. If you file for Chapter 13 Bankruptcy you might be able to substantially reduce your medical bills. Chapter 13 will permit you to pay off the medical bills over a 3 to 5 year period of time based on your disposable income. Many times, Chapter 13 Bankruptcy forces unsecured creditors such as medical providers, hospitals, and doctor’s to accept pennies on the dollar.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Athens, GA Bankruptcy

Bankruptcy case in Athens, GA begins with the filing of a petition with the bankruptcy court. The filing of the petition creates a bankruptcy estate, that usually consists of all the assets of the person seeking bankruptcy protection. A separate taxable entity is established when the bankruptcy petition is submitted by an individual under chapter 7 or chapter 11 of the US Bankruptcy Code.

A bankruptcy petition is the document that initiates the bankruptcy process. The petition may be a voluntary petition, that is filed by the debtor, or it can be an involuntary petition, that is filed by creditors who fulfill certain requirements. The voluntary petition must be as provided in Form 1 of the Official Forms prescribed by the Judicial conference of the United States. The Official Forms may be purchased at legal stationary stores.

The documentation necessary at the time of filing for bankruptcy in Athens, GA has increased. For instance, the debtor must provide additional information that details all income and expenses. If the expenses exceed the IRS allowance, a special circumstances document has to be submitted which reasons the necessity of the extra expense incurred. A statement of accuracy must also be submitted, together with these special circumstance documents.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy