Looking to File Bankruptcy?

Overwhelming debt plus creditor harassment is a sure way for anyone to lose sleep. Financial difficulties can arise for a wide variety of reasons.  Unexpected events like the loss of a job, a serious accident, a medical emergency or numerous other situations can have an adverse impact on your financial well-being.  Bills can pile up over time, eventually overwhelming your budget.  The Chronister Law Firm understands the enormous stress that mounting bills can have on your life.  We have experience in helping guide you through a Chapter 7 or Chapter 13 bankruptcy and in some cases debt settlement.  We are dedicated to helping you obtain a fresh start.

What Is Bankruptcy?

Filing bankruptcy is a legal process that helps you eliminate your debts and start over. The bankruptcy process allows people or entities that are unable to repay their debts to seek relief from some or all those obligations.  In most jurisdictions, the debtor usually voluntarily initiates bankruptcy proceedings, which are imposed by a court.

The Bankruptcy Filing Process: A Step-by-Step Guide

Filing for bankruptcy requires careful preparation and attention to detail. The process begins with gathering essential financial documents, including tax returns, pay stubs, bank statements, and a comprehensive list of your assets and debts. You will need to complete a credit counseling course from an approved provider before submitting your petition.

Your bankruptcy petition must include detailed schedules listing all creditors, assets, income, expenses, and financial transactions from the past several years. Once filed, an automatic stay immediately stops all collection activities, giving you temporary relief from creditor harassment.

The next phase involves meeting with a court-appointed trustee who reviews your case during the 341 Meeting of Creditors. This mandatory meeting allows the trustee to verify your identity and ask questions about your financial situation. Creditors may also attend, though this is rare in most consumer cases.

After the meeting, depending on your filing type, you will either proceed with liquidation (Chapter 7) or begin your repayment plan (Chapter 13). Before receiving your final discharge, you must complete a debtor education course, which provides financial management tools for your fresh start.

Types of Bankruptcy

There are several types of bankruptcy under Georgia law, including:

• Chapter 7 bankruptcy: This type of bankruptcy is used when an individual’s debts are too high for them to pay off.  Your valuable properties could be repossessed to discharge your debts in such an instance.

• Chapter 13 bankruptcy: This procedure is used when the person or business wants to pay its debts over time subject to a court-approved payment plan. You need to attend the creditors’ hearing, where the payment plan will be drawn up.

How Does Bankruptcy Work?

Filing for bankruptcy is a big decision, but it could be the right one for you. It releases you from both your secured and unsecured debts while allowing you to start afresh. The process of bankruptcy starts by filing a petition in the bankruptcy court.  You would also need to submit financial documents and statements to prove your case. Your petition and all supporting documents must be accurate to the best of your knowledge.  Any false filings or attempts to conceal assets can lead to you losing the ability to file bankruptcy and other potential legal actions.  Therefore, please ensure this opportunity to free yourself from financial turmoil is taken seriously.  Whatever your reason for filing bankruptcy may be, seek legal assistance to ensure that you have proper guidance.

The Cost to Hire an Attorney and to File Bankruptcy

The base Attorney’s fee for Chapter 7 is $1,500 plus a court filing fee is $338.  The base Attorney’s fee for Chapter 13 is $4,000 plus a court filing fee of $313.  A credit report that will be used to complete your petition costs $36 for an individual filing and $57 for a joint filing.  Each debtor is required to take a credit counseling course (pre-filing) that costs $20 (per household) and a debt education course (post filing) that cost $20 (per household).

Understanding the Bankruptcy Filing Timeline

Filing for bankruptcy follows a structured process that typically spans 4-6 months for Chapter 7 and 3-5 years for Chapter 13. The journey begins with mandatory credit counseling, which must be completed within 180 days before filing. You will need to gather essential documents, including: 

1. All bills (mortgages, car payments, medical bills, credit cards, tax debts, collection accounts.) Remove all bills from their envelopes and eliminate any duplicate bills. Please arrange them in a neat stack for us to review.

2. All the check stubs received by you and your spouse for the last 7 months.

3. Federal Tax Returns for the last two years.

4. Most recent bank statements.

5. Lawsuits, garnishments and foreclosure notices.

Once your petition has been filed, an automatic stay takes effect immediately, stopping all collection activities. Within 21-50 days, you will attend the 341 Meeting of Creditors, where the trustee reviews your case. This meeting usually lasts 10-15 minutes and is currently conducted via zoom (you must have a camera on your computer or phone).

For Chapter 7, discharge typically occurs 60-90 days after the creditors’ meeting. You will need to complete your debtor education course prior to receiving your discharge, which officially releases you from eligible debts.

Chapter 13 requires you to submit your proposed repayment plan within 14 days of filing, which creditors can object to within 30 days. The confirmation hearing for your repayment plan happens approximately 45 days after the creditors’ meeting.  Chapter 13 plans can range from 3 years to 5 years (this is determined based on the analytics generated within your case.  You will need to complete a debtor education course before receiving your discharge, which officially releases you from eligible debts.

Chronister Law Firm does not charge for an initial 30-minute consultation.  We will discuss whether bankruptcy is the right strategy for you or if other options are available (such as debt settlement).  Additionally, the Attorney’s fees listed above are based on an average case.  Having multiple judgments against you, if you are including a sole proprietorship or single member LLC in your personal filing, or other circumstances that make your case more complex may cause the Attorney’s fees to increase.     

Contact the Chronister Law Firm to see if you should file bankruptcy or if other debt relief options are available.