Bankruptcy FAQ

What is bankruptcy? What does it do?

Bankruptcy is a legal way for people like you to eliminate debt by providing at least partial payment to creditors and providing you a legal, financial fresh start.

Who can file bankruptcy?

Anyone can file bankruptcy. There are different kinds of bankruptcy for individuals and corporations.

Is it true I’ll have to sell off all my stuff, including my house and car?

Each state is different, but most states have exemptions that allow you to keep most of your property – possibly even your house and car – depending on the value of the property. Based on your circumstances and legal advice, you may choose to give up your house or car. This applies mainly to Chapter 7. Chapter 13 lets you pay creditors out of your disposable income rather than your assets.

I’m being sued or garnished. Am I too late to do something about it?
It’s never too late to stop garnishment or a lawsuit. Filing bankruptcy under Chapter 7 or 13 immediately halts all collection activity including lawsuits and garnishment through Automatic Stay protection.

What is the difference between secured and unsecured debt?

Secured debt has an asset attached (collateral put up against the loan) that a creditor can claim as payment – such as a house or car.

Unsecured debt has no such collateral or asset attached – such as most credit or charge card debt and medical bills.

Will I have to go to court?

Yes. Filing bankruptcy requires you to attend a 341 Meeting of Creditors. Chapter 13 filings require you to attend a confirmation hearing before a judge. You will be required to answer questions by the trustee and perhaps your creditors about the validity of your case. You do not go alone; your attorney will attend with you.

Do I really need an attorney to file bankruptcy? Can I do it on my own?

Bankruptcy is a complex legal matter, and a local bankruptcy attorney can advise you on options and exemptions you may not know about or fully understand. You have the right to file on your own, but your creditors will be protected by attorneys. So should you.

Will I be able to get credit after bankruptcy?

Many companies charge higher fees and interest for those who’ve filed bankruptcy. But from the time of your discharge, you will receive offers for new credit cards. In fact you may have more offers. Many credit card companies know you can’t file the same Chapter of bankruptcy again for 8 years. You will need to carefully consider if you’d want to accept any of those offers. Here is a good place to start: www.cccsinc.org

How can I get a copy of my credit report?
Under Georgia Law you are entitled to one free copy of your report per year. The major reporting agencies are:

Trans Union – www.transunion.com
1-800-916-8800
Equifax – www.equifax.com
1-800-685-1111
Experian – www.experian.com
1-888-397-3742