When medical bills or credit card debt is out of control, chapter 7 bankruptcy in Marietta can help to get back on track and obtain financial freedom. Bankruptcy is a federal process and each state has its own laws. A trustee is assigned to collect all of the assets that are not exempt to sell. The proceeds will be distributed to the creditors and a commission will be taken by the trustee who was overseeing the sale and distribution.
Chapter 7 bankruptcy in Marietta does not permit certain debts to be discharged. Alimony, child support, fraudulent debts, student loans, and certain taxes will not be eliminated. This type of bankruptcy is ideal for someone who has a large amount of credit card debt or other unsecured bills and very few assets. Someone in this type of situation can usually eliminate all of their debts.
Certain secured debts can be kept if they are reaffirmed. A Reaffirmation Agreement must be signed to keep a car, furniture, or house. Once this type of agreement is signed, someone cannot file bankruptcy or wipe out their debt again for eight years. Any debt that’s reaffirmed must be brought current before the agreement is accepted. It is also possible to choose certain debts to reaffirm and not others. Someone may want to keep their home but not their car and they’re allowed to do that.
Before someone files for chapter 7 bankruptcy, they must participate in credit counseling. This must be completed within six months immediately before filing for bankruptcy. Debtor counseling has to be completed before they can receive their discharge. Georgia does not allow its residents to use federal exemptions when filing for bankruptcy, unlike other states. These exemptions apply to both chapter 7 and chapter 13 bankruptcy petitions.
If you’re currently swimming in debt, a free consultation with a bankruptcy attorney can put you back on the right lane. They can give you the legal advice you need without costing you any money. They will help you determine whether chapter 7 or chapter 13 bankruptcy will work for your current situation.
