Macon Chapter 7 Bankruptcy Lawyer
Serving Individuals & Couples in Macon, Warner Robins & Central Georgia
Chapter 7 bankruptcy, known as the liquidation bankruptcy, is the most common form of bankruptcy filing in the U.S. It is the simplest and quickest way to have your unsecured debt discharged through the courts. Unsecured debt consists of debt that is not based on physical collateral, such as a home or vehicle. The major source of unsecured debt for most people is credit card debt.
If you are drowning in an overload of debt, filing for Chapter 7 bankruptcy may be the best way for you to resolve it. At The Law Office of Kyle Krejci, Kyle can evaluate your debt situation and advise you on how Chapter 7 works, including its advantages and disadvantages, so that you can make an informed decision. Should you decide to move forward, Kyle can thoroughly prepare your case for court. He will be by your side throughout all phases of the Chapter 7 proceedings.
How Chapter 7 Bankruptcy Works
Chapter 7 bankruptcy is referred to as the “liquidation” form of bankruptcy because your assets that are not protected by bankruptcy law are sold off and the proceeds are used to pay back your creditors. These assets are called “non-exempt.” In the majority of cases involving Chapter 7, people have few or no non-exempt assets that will be liquidated. Georgia provides a list of “exemptions” that are not subject to liquidation. These range from the equity in your home and car as well as other exemptions.
If you have a lot of assets or assets in which you have significant equity, Chapter 7 may not be right for you. It does not provide a way to catch up on mortgage payment arrears or car loan arrears.
Qualifying for Chapter 7 in Georgia
To initiate a Chapter 7 filing, you must qualify. If your family’s median income is not above the state median for a household of your size, you will automatically qualify. If your income exceeds that median, you may still qualify through a “means” test that allows you to deduct certain expenses that will reduce your income.
Once you complete the Chapter 7 process, whatever consumer debt you owe will be discharged through the court. This can include:
- Balances on your credit cards
- Medical/dental bills
- Unpaid utilities
- Payday loans
- Other unsecured personal loans
A Chapter 7 cannot discharge certain other debts, such as child support and alimony payments, certain taxes, court-ordered fines, personal injury settlement debts, or victim restitution. It also generally does not discharge student loan debt except through extremely specific and difficult strategies.
When faced with insolvency, you need to learn your options. Kyle can help you better understand the Chapter 7 process and how it can help you wipe out consumer debt and put you back in control of your finances.
Call his office today at (478) 401-8886 to set up your free and confidential consultation to get started.