Selecting The Right Bankruptcy Chapter For You

Once you and your family have made the decision that declaring bankruptcy is the best resolution for your debt struggles, the next question often is: "What types of personal bankruptcy are available to me/us, and what are the consequences of each type?"

Pratt & Wall, Attorneys at Law, have handled countless individual and family bankruptcy cases. He will review your financial situation and advise you on which chapter is the best choice for you. He can also assist with bankruptcy alternatives, such as challenging credit card lawsuits in court.

When Is Chapter 7 Bankruptcy The Right Answer?

If you do not own a significant amount of property, owe a lot of unsecured debt (including credit card debts or medical bills), and just need a fresh financial start, Chapter 7 may be the right type of bankruptcy for you. It may also make sense if your finances have been devastated by job loss or divorce.

Those allowed to file Chapter 7 bankruptcy must have a household income below the median for a family of your size in Georgia. If your income is higher than the median, our attorney will have to run your budget through what is known as a "means test" to see if you are eligible for Chapter 7.

Additionally, if you declare bankruptcy under Chapter 7, you will be required to take a credit counseling session before filing. This requirement can be completed online.

When Is Chapter 13 Bankruptcy The Right Answer?

Chapter 13 bankruptcy is a court-supervised debt repayment plan. If you have a significant amount of nonexempt property you want to keep, if your car is being repossessed or your house is in foreclosure, or you have too much equity in either of them to qualify for Chapter 7, then this form of bankruptcy may be best for you.

As with Chapter 7, you will need to complete credit counseling before you can file your case. Once your plan is approved, you will pay back a portion of your debts to your creditors over the span of three to five years.

Get Accurate Bankruptcy Information Before You File

Pratt & Wall, Attorneys at Law, can guide you through each step of the bankruptcy process. To get started, schedule a free initial appointment by calling 770-614-4811 or emailing our firm. We serve clients across Georgia from our office in Suwanee.

Under federal law, we are designated as a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.