Georgia Bankruptcy

In these uncertain economic times,bankruptcy in Georgia should have an obvious attraction for residents who have worked long and hard to build a life for their families. These breadwinners that have prided themselves on their household’s efforts to maintain budgets only to find that the American financial system (which so encouraged the credit cards and charge accounts that initiated such troubles) no longer guarantees an easy way out. Much as the various forms of bankruptcy protection may seem to provide a dignified escape route for deserving families who wish to get themselves out of any increasing debts – particularly for those borrowers who have recently fallen into unexpected troubles such as medical emergencies or sudden bouts of unemployment (which residents of all parts of Georgia have sadly come to expect during the recent economic down turn) – there are new and exciting opportunities for debt elimination above and beyond bankruptcy. Just because past generations had no choice but to turn to bankruptcy protection for their overwhelming burdens when no additional alternative could have been suggested, residents of Georgia in the twenty first century should not automatically rush toward Chapter 7 or Chapter 13 bankruptcies simply because this form of debt management and debt elimination has become the most common. As a matter of fact, after the severe alterations of the national bankruptcy code in past years, the current bankruptcy protections no longer (from all discussions that we have had with borrowers facing the same dilemmas regarding financial burdens they are unable to satisfy) meet the needs of Georgians who have a strong work history and personal possessions that they wish to keep safe.

Given all of the changes to the United States bankruptcy court following recent congressional legislation, the original meaning of the Chapter 7 bankruptcy protections has long since been dissipated by the political muscle of the credit card conglomerates. As we shall soon explain, Georgia borrowers are considerably better taken care of than their countrymen who must depend on wafer thin federal statutes, but, nevertheless, there are a few advantages to the bankruptcy program that still could be more than useful for the right debtors. First and foremost, the mere declaration of bankruptcy should guarantee all Georgia filers a shield from harassment by their actual creditors or the collection agencies that have purchased the loans. This automatic stay, as the temporary protection is now known, offers more than just an end to irritating phone calls and the past due envelopes cluttering the mail box. After a bankruptcy petition has been properly filed, Georgia law will put an immediate halt to any home foreclosure proceedings or lawsuits that threaten penalties including wage garnishment and asset forfeiture. While a small number of Georgian consumers require such assistance to protect their homes and vehicles, many just want the telephone to stop ringing. It’s no little thing, your authors understand, to reduce the stresses – proven by medical studies to be demonstrably harmful to the health of afflicted consumers – that result from unsatisfied debt loads. Unfortunately, too many heads of household around Georgia ignore their financial problems until they have no recourse but to follow their instincts toward bankruptcy protection. Again, we certainly understand these consumers’ motivations, but, after years spent working with debt ridden consumers in Georgia and throughout the southeast, your authors feel that they should explain a bit about the current state of bankruptcy and the new (and, in many instances, more successful) options designed to aid borrowers eliminate their credit burdens.

There are two types of bankruptcy protection: Chapter 7 and Chapter 13. Each one has its own pros and cons, and the right filing for you depends on a number of different factors. In the end it’s best to consult a bankruptcy lawyer to discuss your specific scenario, but this should only be done as a final resort after all other options have been exhausted.

Bankruptcy should be considered only as a last resort. The effects of filing for Bankruptcy protection are long-lasting - up to 10 years in certain states. Recently the rules for filing Bankruptcy changed, and it is now harder than ever to wipe the slate clean.