Augusta GA Bankruptcy Lawyer | Georgia Attorney

Evans Georgia bankruptcy law firm describes filing for bankruptcy

Bankruptcy pleadings in Augusta Georgia

A bankruptcy petition is the document that begins the bankruptcy process. The petition may be a voluntary petition, that is filed by the debtor, or it can be an involuntary one, which is filed by creditors that fulfill certain criteria. The voluntary petition must be as prescribed in Form 1 of the Official Forms prescribed by the Judicial conference of the United States. The Official Forms may be obtained at legal stationary stores. A voluntary petition should include general information concerning the debtors name(s), social security number or tax identification number, residence, location of principal assets (if a business),the debtors plan or intention to file a plan, and a request for relief under the appropriate chapter of the Bankruptcy Code. Additionally, the voluntary petition must indicate whether the debtor qualifies as a small business as defined by the law and also if the debtor elects to be treated as a small business under the law. When the debtor files a voluntary petition under Chapter 11, the debtor becomes the debtor in possession. In case of an involuntary petition, upon the entry of an order for relief, the debtor becomes the debtor in possession. The keeps possession and control of its properties and undergoes a reorganization under chapter 11, without the appointment of a bankruptcy trustee and prior to confirmation of a chapter 11 plan. The appointment or election of a trustee happens only in a rare cases. Usually, the debtor, as debtor in possession runs the business and does the functions that a trustee performs in cases under other chapters.

———————
We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.

An Augusta Georgia bankruptcy lawyer describes Wage garnishment

Bankruptcy lawyer Augusta

It is never pleasant to be called in by your employer to be told your paycheck is being garnished. You must do everything you can not to let things reach this stage, but sometimes they do and you must know what action to take. This kind of thing does not happen overnight, the collection agency should demonstrate to the judge that they took the correct steps in trying to collect from you first.

This is usually a last step for them, but they may do it. When you file bankruptcy there is something called an “automatic stay” that prevents the collectors from continuing any action against you. At this point you are under the courts protection and if they proceed with their pursuit they are breaking the law. In certain cases, the borrower has actually sued the collector and won damages against the collection agency. Besides, there is a chance you can receive some of the garnished income back that was taken from your paycheck.

———————
We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.

Wage garnishment and bankruptcy proceedings – Augusta Georgia bankruptcy attorney

Augusta Georgia chapter 13 bankruptcy

Can a creditor garnish your wages or not is determined by the laws in your state. Every state has enacted statutes setting forth which property is protected from creditors and which property can be taken by creditors. A few states do not allow any wage garnishment at all, however even such states that do regulate how much can be garnished from a persons wages in order to allow that person to have something remaining to get by on, although many people have a hard time living on what is left over after their wages are garnished. There is also federal rules governing wage garnishments.

A good way to avoid most wage garnishments except those regarding student loans and child support is to file bankruptcy. Filing Chapter 7 bankruptcy will immediately stay a wage garnishment in progress and cancel out any remaining wage garnishments, if that the court permits that debt to be discharged.

———————
We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.

Columbia County Georgia bankruptcy attorney explains the law of Disposable Income

Columbia County GA bankruptcy lawyer

If your current monthly earning is lower than the median income for a household of your size in for Georgia, you pass. You are through. You are not required to complete the remainder of the means test. You qualify to file for Chapter 7.

For those whose household income is more than the state median, the means test computations get much more complex. You should calculate if you have enough income left over after paying your allowed monthly expenses, to pay off at least a portion of your unsecured debts like credit card bills. If your disposable income is higher than a certain amount, you fail the means test and cannot file for Chapter 7 bankruptcy.

Median income levels differ by state and household size, and each county and metropolitan region has different permitted amounts for types of expenses: basic necessities, housing, and transportation.
———————
We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.

Disposable income explained by Augusta GA bankruptcy attorneys

Augusta Georgia bankruptcy attorney

You are not eligible to file for Chapter 7 if you cannot qualify for certain new conditions imposed by the 2005 changes to the bankruptcy law. Under the new rules, you cannot file for Chapter 7 if both of the following are true:
Your present monthly income over the last six months to your filing date is more than the median income for a home of your size in GA.
Your disposable income, after deleting certain expenses and monthly payments for debts you would have to repay in Chapter 13, is above certain limits fixed by statute. The calculations are generally referred to as the “means test”. When you have the capacity to repay a certain amount of your debt through a Chapter 13 repayment plan, you fail the test and are ineligible for Chapter 7 bankruptcy.
———————
We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.

Disadvantages of the Automatic Stay – Richmond County Georgia bankruptcy lawyers

Best bankruptcy attorney Augusta Georgia

Loans from a pension – Despite the automatic stay, money may be withheld from your wages to repay a loan from certain types of pensions such as many job-related pensions and IRAs.
Multiple filings – If you had a bankruptcy case pending during the previous year, then the stay will automatically terminate after 30 days unless you, the trustee, the U.S. Trustee, or a creditor asks for the stay to continue and demonstrates that the present proceeding was filed in good faith. If a creditor had a motion to lift the stay pending during the previous case, the court will presume that you acted in bad faith, and you will have to overcome this presumption to enjoy the protection of the stay in your present case.

Generally, a creditor can dodge the automatic stay by requesting the bankruptcy court to remove the stay, if it is not serving its intended objective. For example, if you file for bankruptcy the day before your house is to be sold in foreclosure. You have no equity in the house, you cannot pay your mortgage dues, and you have no way of retaining the home. The foreclosing creditor can ask for permission to proceed with the foreclosure and that permission is likely to be granted.
———————
We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.

What the Automatic Stay Shall not Prevent – Evans GA bankruptcy attorneys

Richmond County GA bankruptcy lawyer

Numerous tax proceedings – The IRS can still audit you, issue a tax deficiency notice, demand a tax return which generally leads to an audit, issue a tax assessment, or demand payment of such an assessment. Whereas, the automatic stay does prevent the IRS from issuing a tax lien or seizing your property or income.
Support actions – A legal case against you for establishing paternity or to establish, modify, or collect child support or alimony will not be stalled by your filing for bankruptcy.
Criminal proceedings – A criminal action that can be broken down into criminal and debt portions will be divided, and the criminal component shall not be stayed by the automatic stay. For instance, if you were found guilty of writing a bad check, ordered to do community service, and ordered to pay a fine, your obligation to do community service shall not be stayed by your filing for bankruptcy.
———————
We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.

Benefits of the Automatic Stay – Richmond County GA bankruptcy law firm

Augusta bankruptcy law firm

Eviction – If you are being evicted from your home, the automatic stay may provide some help nonetheless the new bankruptcy law makes it easier for landlords to continue with evictions. If your landlord already has a decree of possession against you when you file, the automatic stay cannot affect the eviction proceedings; the landlord can continue just like you had not filed for bankruptcy. And if the landlord alleges that you have been endangering the property or using controlled substances there, the automatic stay will not do you much good, either. In other cases, the automatic stay might buy you a few days or weeks, but the landlord will probably ask the court to lift the stay and allow the eviction and the court will probably allow the eviction.

Collection of overpayments of public benefits – If you receive public benefits and were overpaid, normally the agency can recover the overpayment out of your future checks. The automatic stay prohibits this collection. Yet, if you become ineligible for benefits, the automatic stay does not prevent the agency from denying or terminating benefits on that ground.

———————
We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.

What the Automatic Stay Can Stop – Augusta Georgia bankruptcy attorney

Best bankruptcy attorney Augusta

Utility disconnections. If you have defaulted on a utility bill and the company is threatening to discontinue your water, electric, gas, or telephone service, the automatic stay will stay the disconnection for at least 20 days. Although the amount of a utility bill itself seldom justifies a bankruptcy filing, preventing electrical service cutoff in winter may be one reason.
Foreclosure. If your home mortgage is being foreclosed on, the automatic stay temporarily stops the proceedings, but the lender will generally be able to proceed with the foreclosure sooner or later. If you are facing foreclosure, Chapter 13 bankruptcy is usually a better remedy than Chapter 7 bankruptcy, if you want to retain your house.
Multiple wage garnishments. Filing for bankruptcy stays garnishments dead in their tracks. Not only will you take home a full salary, you also may be able to wipe out the debt in bankruptcy. Even though no more than 25% of your wages can be taken to satisfy court decrees, most people file for bankruptcy when more than one wage garnishment is threatened.

———————
We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.