Bankruptcy FAQs

If you have any questions about bankruptcy, contact us now. Call (phone) or use the feedback form on this page. Our bankruptcy attorneys in Athens, GA (Georgia) will answer your questions.

Are there any alternatives to bankruptcy?

The debtor can contact a debt counseling service to help consolidate debts as an alternative to bankruptcy. If the debtor chooses to file for bankruptcy, the debtor must choose amongst the different chapter. Chapter 7 is the most common one, but Chapter 13 is ideal for debtors with regular income and also allows the debtors to keep their assets. Chapter 11 is ideal for small business owners and sole proprietors.

Will bankruptcy discharge all my debts?

Bankruptcy will discharge most of your debts. When a debt is discharged in bankruptcy, it is no longer enforceable against the debtor personally. The debtor is no longer required to pay the debt, or the portion of the debt that has been discharged, nor can the debtor be subject to collection activity on the debt, including being sued on the debt. Creditors can, however, move to seize any secured asset on which there is a valid lien that has not been avoided (or cleared) by the bankruptcy court. A bankruptcy discharge serves to erase the debt and give the debtor a fresh start financially. Some debts must still be paid.  It is rather a longish list, but the following debts will not be discharged: 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?

Any debtor can file for bankruptcy but the debtor cannot file for bankruptcy if a previous bankruptcy petition was dismissed within the past 180 days. Individuals, partnerships and corporations can file for Chapter 7. The debtor must file for Chapter 13 if the debtor’s income is sufficient, after subtracting what you'll spend on certain allowed expenses and monthly payments for child support, tax debts, secured debts such as a mortgage or car loan, and a few other types of debts, to fund a Chapter 13 repayment plan. Chapter 13 is restricted to individual debtors with regular income. Chapter 13 eligibility is contingent on the fact that the individual's unsecured and secured debts are between certain dollar amounts that are adjusted annually by statute. Small businesses should file under Chapter 11.

What happens at the creditor’s meeting in a chapter 7 proceedings?
A meeting of creditors is usually held 20 to 40 days after the petition is filed. The trustee runs the meeting and, after swearing the debtor in, may ask the debtor questions about the bankruptcy and the papers filed. This meeting takes place somewhere in the courthouse rarely lasts more than a few minutes. In the vast majority of Chapter 7 bankruptcies, this is the debtor's only visit to the courthouse. The debtor must attend this meeting, at which creditors may appear and ask questions regarding the debtor's financial affairs and property. If a husband and wife have filed a joint petition, they both must attend the creditors' meeting. The trustee is required to examine the debtor orally at the meeting of creditors to ensure that the debtor is aware of the potential consequences of seeking a discharge in bankruptcy, including the effect on credit history, the ability to file a petition under a different chapter, the effect of receiving a discharge, and the effect of reaffirming a debt. To preserve their independent judgment, bankruptcy judges are prohibited from attending the meeting of creditors.
What is the role of the trustee in a chapter 7 proceeding?
The bankruptcy trustee will liquidate the debtor’s non-exempt assets and try to maximize returns to the debtor’s unsecured creditors. If the debtor has a business, the trustee may be authorized by the bankruptcy court to operate the business for a limited period of time if the court feels that such action will benefit the creditors.
How can I get a discharge in Chapter 7?
A discharge releases the debtor from personal liability for discharged debts and prevents the creditors owed those debts from taking any action against the debtor or his or her property to collect the debts. As a general rule, individual debtors receive a discharge in more than 99 percent of Chapter 7 cases. In most cases, unless a complaint has been filed objecting to the discharge or the debtor has filed a written waiver, the discharge will be granted to a Chapter 7 debtor relatively early in the case, that is, 60 to 90 days after the date set for the meeting of creditors. Liens are still valid even after a Chapter 7 discharge.
Can the court refuse discharge in a Chapter 7 proceeding?
The court can refuse discharge on the following grounds in a Chapter 7 proceeding:

1. The debtor failed to keep or produce adequate books or financial records;
2. The debtor failed to explain satisfactorily any loss of assets;
3. The debtor committed a bankruptcy crime such as perjury;
4. The debtor failed to obey a lawful order of the bankruptcy court; or
5. The debtor fraudulently transferred, concealed, or destroyed property that would have become property of the estate.

Does bankruptcy discharge all debts?

A discharge does not discharge an individual debtor from certain specific types of debts listed in the Bankruptcy Code. The types of debts that are not discharged include:

1. Alimony and child maintenance and support obligations,
2. Certain taxes,
3. Debts for certain educational loans made or guaranteed by a governmental unit,
4. Debts for willful and malicious injury inflicted by the debtor,
5. Debts for death or personal injury caused by the debtor's operation of a motor vehicle while the debtor was intoxicated from alcohol or other substances, and
6. Debts for criminal restitution orders.

What is the role of the trustee in Chapter 13 proceedings?
After the petition is filed, the court will appoint an impartial trustee who will collect the payments from the debtor according to the repayment plan and distribute it to the creditors.
What are the requirements of the repayment plan in Chapter 13?

The plan must list how the debtor will repay each debt. The plan will generally provide for payments of fixed amounts to the trustee on regular basis – biweekly or monthly. The plan must be approved by the court. The trustee will receive the payments from the debtor and distribute it to the creditors. The creditors generally receive less than the full amount due. There is no fixed format for the repayment plan. Most court s have their own forms. Generally the plans are of three years. However, if the debtor can show cause, plans of five years are also approved. But the court will not approve of plans over five years.
Can a Chapter 13 repayment plan be modified?
The trustee can modify the plan if the debtor is unable to finish repayment plan by:

1. giving a grace period, if the problem looks temporary
2. reducing the total monthly payments, or
3. extending the repayment period.

Can a debtor be fired for bankruptcy?

It is illegal for employers to fire or discriminate against employees who have been discharged in a bankruptcy proceeding.

How do I get a copy of the discharge in my bankruptcy?

Copy of the discharge order can be collected from the court office after paying the fees or can be obtained online using the PACER system.

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, Chapter 11 and Chapter 13 filings. We can help you file for bankruptcy.