Atlanta Bankruptcy Litigation FAQs

Attorney Michael R. Rethinger can answer all your bankruptcy questions

Can I keep my house if I file bankruptcy?
This depends on your particular circumstances, the types of debt you have and what your assets are:

• During a chapter 7, Georgia law allows a $10,000 exemption for individuals on real estate property meaning a debtor is allowed to keep property in the amount of that dollar value.  Contact our firm to discuss other chapter 7 options. 
• Generally, filing chapter 13 is a more effective way of maintaining ownership of large assets like a home.

If my income level is above the state average, can I still file chapter 7?

Maybe. Your eligibility depends on factors beyond income level—the amount of your household expenses, the size of your family, the amount of your debt, and others.  A lawyer can help you evaluate your situation to determine if chapter 7 can work for you.

Does every bankruptcy end up in court?
Every bankruptcy has a hearing that the debtor must attend.  It is a formal administrative hearing specific to the type of bankruptcy that is filed.

There are cases where creditors dispute a debtor’s intended debt discharge and file adversarial actions against the debtor.  Those circumstances require courtroom litigation to settle the dispute.

Will filing bankruptcy ruin my credit?
Usually, when people are considering bankruptcy, their credit is already in a less than desirable state.  Filing bankruptcy will certainly not improve your credit right away, but it can lead to establishing new and positive credit once you begin to pay off your new, post-bankruptcy debts.

What does it mean to have a debt discharged?
When a debt is declared discharged by the courts, the debtor no longer has a personal responsibility to pay it back.  A discharge is a formal legal procedure that prevents a creditor from taking further action on the debt.

Will a chapter 13 repayment plan take away all of my monthly income?
A chapter 13 repayment plan will require you to allocate all of your monthly “disposable” income to paying of your debt, but it will not keep you from meeting your needs.  Monthly income is only deemed disposable after you have met monthly financial needs—food, clothing, shelter, education—necessary for you and your family.

How long does it take to file consumer bankruptcy?
Chapter 7 bankruptcy usually averages anywhere from 6 to 9 months to complete.

Chapter 13 is a longer process.  The application and filing time is comparable to chapter 7, but it takes 3 to 5 years to complete the repayment plan.

Call 888-552-8180 for more Georgia consumer bankruptcy answers.