Athens GA Bankruptcy – Georgia
It does not mean that everything will be rosy once you file for bankruptcy. Most people who file for bankruptcy are already in trouble with a number of creditors, and therefore usually have a poor credit rating. Bankruptcy will not make those credit problems any worse, but will not make them go away either. Bankruptcy will be listed on your credit history for 10 years. You may be granted credit after filing a bankruptcy, but the decision to give you credit is up to the individual lender.
If the debtor discharges his debt through bankruptcy, the creditor has the legal right to demand that the co-signers pay the debt. But there are some variations. If, for example, you file Chapter 7 bankruptcy, the creditor can proceed against your co-signers, according to the terms of the debt agreement. However, if you file a Chapter 13 debt adjustment, a co-signer is protected if the following conditions are met:
• The debt must be a consumer debt
• also, the debt may not be incurred in the ordinary course of business,
• and the co-signer cannot benefit from the proceeds of the debt
• as long as the debtor is making the required payments under the Chapter 13 plan, the creditor cannot act to collect from the co-signer. The
purpose of this provision of Chapter 13 is to allow a debtor to repay the debt without the creditor approaching the co-signer for repayment.
This is to say that if you file a Chapter 7 bankruptcy, your creditors have the right to immediately demand payment from your cosigners. If, on the other hand, you file a bankruptcy petition and a proposed payment plan under Chapter 13, your creditors cannot collect from your co-signers unless it becomes clear that the Chapter 13 plan will not pay the entire amount owed.
We are based in Athens, GA (Georgia). We can help you file for bankruptcy if you are located in Athens, Watkinsville, Carnesville, Elberton, Homer, Jefferson, Danielsville, Lexington, Hartwell, Winder, and Clarke County, Oconee County, Elbert County, Franklin County, Banks County, Jackson County, Madison County, Hart County, Barrow County and Oglethorpe County, Piedmont Judicial Circuit, Northern Judicial Circuit and Athens-Clarke County.
———————
Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy
http://www.athensbankruptcy.com
Comments on this entry are closed.