Bankruptcy
Camp Law Offices
At Camp Law Office, we understand the difficult decision to file bankruptcy can be overwhelming and frustrating.
We also understand the feeling of relief that our clients experience once their financial burdens have been taken away. We will help you stop the creditor harassment, achieve debt relief, and help you get ahead of your financial situation. Please give us a call for a free consultation so that we may be able to properly advise you so that you can make a fully informed decision about bankruptcy.
Camp Law Offices, P.C. our Attorney’s specializes in consumer bankruptcy (i.e. individuals and families…we do not represent banks nor insurance companies). There are two types of consumer bankruptcy – Chapter 7 and Chapter 13.
Chapter 7
Chapter 7 bankruptcy is designed for debtors who cannot pay their debts back.
You must meet certain income requirements to be able to file for Chapter 7 bankruptcy. As a consumer, your income must fall within certain guidelines that have been established. In order to determine if your income meets these guidelines you must provide your attorney with copies of all your paycheck stubs for the six months prior to the filing of a bankruptcy petition and the attorney will calculate a means test. (If you are married or live with a significant other, you must also provide these paystubs for your spouse/partner even if they are not filing with you as a means test is based off of the household income.) This means test will determine if your income falls within the guidelines for filing of a Chapter 7 bankruptcy case. There are certain deductions allowed under the means test (also called a Statement of Current Monthly Income and Form 122A or Form 122C). This is another reason it is very important to consult with an attorney so that a proper means test can be calculated.
Chapter 7 bankruptcy is also referred to a liquidation. Liquidation means taking your assets and making them into money to pay your creditors. If you own a home or any luxury items that may have a substantial amount of equity, a Chapter 7 may not be a good option for you. It is very important that you consult with an attorney and discuss all of your assets so that no surprises occur after you file bankruptcy.
It is possible for a debtor to be able to keep their home and cars in a Chapter 7 (also referred to as reaffirming a debt). There are certain requirements that must be met. There must be little or no equity in the property, you must be current on your payments, and you must be able to prove to the court that you can afford to maintain the payments on the property.
The purpose for a debtor in filing a Chapter 7 is to be discharged of their debts. There is a difference is a discharge and a dismissal. A discharge means that you are no loner responsible for paying certain debts. A dismissal means that the court had not approved for you to be discharged of your debts and your bankruptcy case is no longer active.
There are certain debts that are not discharged in a Chapter 7. Those debts include domestic support obligations, certain tax debts, student loans, and any criminal fines, fees, or restitutions. There is an extensive list under 11 U.S.C. 525 and 727.
Please be advised that a debtor cannot receive a discharge in a Chapter 7 case if that debtor has received a discharge in another Chapter 7 case within 8 years.
Chapter 13
Chapter 13 is a repayment plan. It is also referred to as a debt consolidation plan whereas debtors can eliminate interest and penalties on credit cards and taxes. It is designed for debtors who do not qualify to file for Chapter 7 or for debtors who may be attempting to stop a foreclosure or repossession. In a Chapter 13, a debtor must file a plan with the court to repay their creditors all or part of the money that is owed to them. The time period allowed by the court to repay debts in a Chapter 13 may be three or five years, depending upon the debtor’s income and certain other factors. This plan must be approved by the court.
There are certain debts that are not discharged in a Chapter 13. Those debts include domestic support obligations, most student loans, criminal fines and restitution, and some long term secured debts (i.e. mortgage).
The goal of a debtor in a Chapter 13 is to receive a discharge. Once the debtor’s plan has been completed and the creditors have been paid according to the plan, the debtor will receive a discharge.
Please be advised that if a debtor has previously filed a Chapter 13 case that was dismissed and in need of filing a new Chapter 13, it is recommended that you talk with an attorney in regards to how a new case filing can affect your situation.
Debtors must complete a pre-bankruptcy counseling course with a court approved credit counseling agency before a bankruptcy case can be filed. Most of these courses are offered online or over the phone. This course must be completed within 180 days prior to the filing of a bankruptcy case. After a bankruptcy case is filed, debtors must complete a second credit counseling course (commonly referred to as a financial management course) with a court approved credit counseling agency. This course is also offered online and over the phone. This second course must be completed within 45 days after the debtor’s bankruptcy hearing.
Please see the links at the bottom of this page. You will be directed to a website where you can begin the credit counseling course. You will be charged a fee for the completion of this course so please review your options.
Some things that are not commonly known about filing bankruptcy:
- You can get rid of some tax debt
- You must inform the court of all of your debt
- Most of the time, you can not keep a credit card after you file bankruptcy (however, you may qualify for a new account)
- Many times, state law dictates what property you can exempt (keep)
- Generally, “authorized users” are not responsible for debt
- Co-signors are responsible are the debt and if you default or file bankruptcy, the creditor can go after the co-signor (unless you file a Chapter 13 and propose how you will pay the debt)
- You have to be careful that you don’t have recent charges which are not for reasonable necessities (leisure spending can trigger issues if you file bankruptcy)
- You can time when to file a bankruptcy to maximize the benefits to you
- Bankruptcy does stop garnishments, lawsuits, repossession, and foreclosures
- If you forget to list a debt, it may still be able to be discharged
- You can get information from credit bureaus such as www.annualcreditreport.com as to whom you owe, but be warned that the creditors addresses are frequently out of date; if you have a recent statement, always choose that address
Camp Law Offices, P.C. offers free bankruptcy consultations.
The following information is required in order to receive your free consultation:
Pay Stubs
You must provide copies of all pay stubs that you have received within the last six months. If you are married or live with a significant other, you must also provide their pay stubs too – even if your spouse/partner is not filing with you. If you do not keep paystubs, you should contact your employer’s payroll department and obtain copies.
Tax Returns
You must provide a copy of your income tax returns for the last two years that you have filed. Please inform your attorney if you are not required to file taxes.
List of Creditors
You must prepare a list that includes every creditor that you owe money to. The list must include the creditor’s correct mailing addresses, account numbers, and the total balances owed to each creditor. Please keep in mind that there are two types of debts – secured and unsecured. A secured debt means that a creditor holds a lien against property (for example, a car note or mortgage). An unsecured debt means that a creditor does not have any types of lien or collateral (for example, a credit card or medical bill). Please make sure that you list ALL of your debts whether secured or unsecured.
Please Keep in Mind
Please keep in mind that before you file a bankruptcy case (either Chapter 7 or Chapter 13), you must complete a pre-bankruptcy credit counseling course with a court approved credit counseling agency. If you have already completed this course within 180 days, please provide us with a copy of the certificate of completion. This course is not required for your free consultation; however, if you would like more information about it, or if you would like to go ahead and complete it, please see the link at the bottom of this page. There is a fee incurred for the completion of the course. Please check with the appropriate credit counseling agency in regards to the fees that charge.
Camp Law Offices
Looking for a Reliable Dedicated Partner?
Call Camp Law Offices, P.C today at 770-942-5101 to schedule an appointment for a free initial bankruptcy consultation or for any questions that you may have. Our friendly and professional staff is available to answer any questions that you may have.
We proudly serve Douglas, Carroll, Paulding, Haralson, Cobb, and Heard counties – including the cities Douglasville, Dallas, Hiram, Villa Rica, Carrollton, Whitesburg, Lithia Springs, Powder Springs, Austell, Mableton, Smyrna, Bremen, Temple, and more cities throughout the West Georgia area.