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Chapter 7 Bankruptcy
In Atlanta, Georgia
Chapter 7 is the Bankruptcy
Code's "Liquidation" chapter, and is also referred to as "straight
bankruptcy" because it cancels out most of your debt. People in
Atlanta, Georgia who need to free themselves of debt simply and inexpensively
primarily use this type of bankruptcy, but it may also be used by Atlanta
area businesses that wish to liquidate and terminate their business.
While filing for debt relief under Chapter 7 usually results in a discharge
of debts, some debts are not
dischargeable.
If you are thinking about
filing Chapter 7 bankruptcy, you need to be aware that filing under
Chapter 7 may result in the loss of your property. A straight bankruptcy
case does not involve filing a plan of repayment as in Chapter 13 bankruptcy,
but instead expects the bankruptcy trustee to gather and sell the debtor's
nonexempt assets. From the sale of the debtor's assets, creditors receive
distributions according to the Bankruptcy Code.
Contact
a Atlanta Area Bankruptcy Attorney
Who is Eligible for
Chapter 7 Bankruptcy in Atlanta, Georgia
Atlanta, Georgia individuals, couples, corporations, and partnerships
are eligible to file a petition under Chapter 7. Relief under Chapter
7 is available regardless of the amount of debt incurred or whether
the debtor is solvent or insolvent. An individual cannot file under
Chapter 7 or any other chapter if in the previous 180 days a prior bankruptcy
petition was dismissed due to the debtor's willful failure to appear
before the court or comply with the orders of the court or the debtor
voluntarily dismissed the previous case after creditors sought relief
from the bankruptcy court to recover property upon which they hold liens.
In Chapter 7 a discharge of debts is available to individuals only,
not to corporations or partnerships. Also, if you have filed for Chapter
7 bankruptcy in the last six years, you are not eligible to file again
until it has been six years from your previous filing date.
What to Expect in
Your Atlanta, Georgia Chapter 7 Bankruptcy Case
A Chapter 7 case begins when the debtor files a petition with the bankruptcy
court. The debtor is also responsible for filing several schedules of
assets and liabilities, a schedule of current income and expenditures,
a statement of financial affairs, and a schedule of executory contracts
and unexpired leases. Your Atlanta, Georgia Bankruptcy Lawyer can help
you in filing all of this paperwork.
Filing the petition for bankruptcy
puts into effect the "automatic stay." The automatic stay
immediately stops most actions by a creditor against a debtor. This
means that your creditors must stop trying to collect what you owe them
in most cases. Creditors generally may not initiate or continue any
lawsuits, wage garnishments, or even telephone calls demanding payment.
A "meeting of creditors"
is usually held twenty to forty, but no more that sixty days after the
petition is filed. The debtor must attend the meeting, as well as the
trustee, but creditors have the option of whether to attend the meeting.
The trustee will orally question the debtor at this meeting to ensure
that the debtor is aware of the potential consequences of filing for
bankruptcy, including the effect on credit history, the ability to file
for a different chapter of bankruptcy, the effect of receiving a discharge,
and the effect of reaffirming a debt. Bankruptcy judges are prohibited
from attending the meeting of the creditors.
The Role of the Trustee
When you file for Chapter 7 Bankruptcy in Atlanta, Georgia, your case
will be assigned an impartial "bankruptcy trustee." The main
roles of the trustee are to administer your case and to liquidate your
nonexempt assets. However, most Atlanta, Georgia Chapter 7 cases are
"no asset" cases, and in these cases, there is no distribution
to unsecured creditors. The trustee will also process all papers you
file with the court and will participate in the meeting of creditors.
If You Change Your
Mind
Once you file a petition for Chapter 7 Bankruptcy you still have a few
options available if your change your mind. You may convert a Chapter
7 case to either a Chapter 11 case or a Chapter 13 case as long as you
meet the eligibility standards for that particular chapter of bankruptcy
and the case has not previously been converted to Chapter 7 from either
Chapter 11 or Chapter 13. You can also ask the court to dismiss your
case. Generally, a court will dismiss a Chapter 7 case as long as the
dismissal will not harm the creditors.
For
more information about Chapter 7 bankruptcy,contact a Atlanta, Georgia
bankruptcy lawyer.
