FAQ

A Chapter 7 bankruptcy liquidates any assets to pay off as much of your debt as possible. The money received from your assets is distributed between banks and credit card companies. Chapter 13 bankruptcy is known as a reorganizational bankruptcy, meaning the debtor will submit a payment plan that repays creditors over a span of 3-5 years.

Filing for bankruptcy can be frightening, but it can be helpful in the following ways:

• Put an end to phone calls from aggressive debt collectors
• Head start on rebuilding your credit
• Stop foreclosure proceedings
• Frees you from credit card debt

There is no minimum time limit that you must wait before you can file for bankruptcy again. However, if you file too soon after receiving a discharge of your debts in a prior Chapter 7 bankruptcy case, you can’t receive a second discharge within 8 years of filing the first bankruptcy case. In cases of Chapter 13 bankruptcies, you are not eligible for another discharge of debts within 2 years of when the first bankruptcy was filed.

In Georgia, the cost for filing a Chapter 13 bankruptcy is $286. Any legal fees are incorporated to the monthly fees you’ll be paying. The cost for filing a Chapter 7 bankruptcy is $306.

In most cases, you will be able to keep your home and car, but it’s not always a guarantee. In exchange for the monthly payments you’ll be making in a Chapter 13 bankruptcy, you may keep your house and car. In Chapter 7 bankruptcy, the court is asked to discharge the debts you owe. In exchange for the discharge, the court-appointed bankruptcy trustee can take any property that you own – unless it is exempt from collection.