Honest debtors can start life afresh by filing for bankruptcy. Bankruptcy will discharge most of their debts. Title 11 of the United States Code (the Bankruptcy Code) is the governing law on Bankruptcy and contains six chapters. Most debtors generally file for bankruptcy under Chapter 7 or Chapter 13 of the Code.
The US Supreme Court has in its landmark judgment in Local Loan Co. v. Hunt, (292 U.S. 234, 244,1934) held that Bankruptcy gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt. A bankruptcy discharge achieves this goal by freeing a debtor of specific debts and prohibiting creditors from ever moving to recover those debts.
Bankruptcy is a legal process most of it takes places outside the court room. Only federal courts have jurisdiction to hear bankruptcy petitions.
Are there debts that are not discharged by bankruptcy?
Bankruptcy will give you a fresh start in life by discharging most of your debts. Once a debt is discharged in bankruptcy, the creditor cannot enforce the debt against you nor start any collection activity. You need not pay that debt. But some debts must be paid and will not be discharged by bankruptcy. These are: taxes; spousal and child support; debts arising out of willful misconduct and or malicious misconduct by the debtor; liability for injury or death from driving while intoxicated; non-dischargeable debts from a prior bankruptcy; student loans; criminal fines and penalties and forfeitures. It does not discharge the debtor from any debt incurred for money, property, services, or an extension, renewal, or refinancing of credit, to the extent obtained by false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor’s or an insider’s financial condition.
Who can file for bankruptcy?
If you are an honest debtor who suffered some unforeseen financial set back, and you want to start life afresh, you can file for bankruptcy. Consult with a bankruptcy attorney who will advise you on the procedure.
Consider fling for bankruptcy only after you have run out of all options.
Our bankruptcy attorneys are based in Athens, GA (Georgia). From our offices, we help clients in 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, and Ben Epps Airport, University of Georgia (UGA), Piedmont Judicial Circuit, Northern Judicial Circuit, Athens-Clarke County with Chapter 7 and Chapter 13 filings. We can assist you with debt reduction and tax issues related to bankruptcy. We can advise you on your bankruptcy options.
