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Bankruptcy is a common form of debt relief pursued by those who have accumulated large amounts of debt, and those who file are relieved of the responsibility to pay all or part of what they owe.
While bankruptcy is often seen as the last resort when debts cannot be repaid, it is important to distinguish myths about bankruptcy from the facts. That’s why our bankruptcy team provides answers to some of bankruptcy’s most commonly-asked questions below.
How Much Does it Cost to File in Georgia?
The cost of filing for bankruptcy in Georgia depends on the Chapter you wish to file under. The costs are as follows:
- Chapter 7: $338.00
- Chapter 11: $1,738.00
- Chapter 13: $313.00
There is also a different cost for those looking to convert their current bankruptcy case to a different chapter:
There is no fee to convert a Chapter 7 case to a Chapter 13 case
- Chapter 13 to Chapter 7: $25.00
- Chapter 7 to 11: $755.00
- Chapter 13 to 11: $932.00
- Chapter 11 to Chapter 7: $15.00
How do I Choose the Best Chapter for Me?
This depends upon your current financial situation and goals. The benefit of filing under a certain chapter can differ from one person to another, so you need to consider each option before making a decision. Remember that while some forms of debt relief may be available under more than one chapter, certain debts cannot be discharged under any circumstance (such as alimony and child support). The following outlines the chapters of bankruptcy and describes which debts are eligible for discharge:
Chapter 7
Chapter 7 is known as the “straight” or “liquidation” chapter of bankruptcy. It utilizes any assets that are non-exempt under the law to help permanently eliminate larger amounts of debt in a relatively short amount of time. If you pass the means test and satisfy the pre-filing requirements, most of your unsecured debts will be discharged upon successful completion of this chapter without further action needed on your part.
Chapter 11
Mostly used by businesses, individuals can file in limited circumstances to reorganize debts and pay them off. A business' operations are also able to continue during this process while an individual's do not (unless it's a joint petition). Chapter 11 gives a time frame to propose a plan to restructure your debts and make them more manageable.
Chapter 13
Mostly used by individuals; it is similar to a reorganization under Chapter 11 but less formal as it is simpler to file; also, individual filers have no limit on liability—they can retain all of their property even if they fail to make payments.
Do I Need a Job to File?
It is a common bankruptcy misconception that you need to have a job in order to file. Although it is not required to have a job, not having one could cause difficulty in a Chapter 13 case, which requires consistent payments toward a plan.
Will I Lose My Home?
One of the biggest concerns of bankruptcy filers is what will happen to their home should they file for bankruptcy. Chapter 13 bankruptcies, in particular, are designed to allow filers to pay off their debts while maintaining the ability to keep their homes.
Bankruptcy is especially suited to saving homes from creditors. With the benefit of the automatic stay, the bankruptcy process makes any creditor actions to contact you or collect on your debts unlawful, including the foreclosure of your home.
Contact Holston & Huntley, LLC Today!
We know how stressful finances can be, and our seasoned debt relief team can formulate a personalized strategy to help you get your finances under control again and get you the financial freedom you deserve.
If you believe bankruptcy could be right for you, don’t hesitate to contact us through our website or give us a call at (404) 620-3337 today!