If you are exploring how bankruptcy can get you out of debt, you may feel overwhelmed by the process and confused about what some of the terms mean. Understandably so, bankruptcy is a complex area of federal law. At our law firm, we strive to ensure our clients understand the bankruptcy process, what to expect, and how filing for bankruptcy will help them get out of debt.
We’ve been practicing exclusively in bankruptcy law for over 35-years. Come meet with us for a free consultation to explore if bankruptcy is the right debt relief solution for you. In the meantime, read on to learn about the most powerful ways in which bankruptcy helps people!
The Automatic Stay
The automatic… what now? So, this is a legal term of art. In legalese a “stay” is putting a halt on something, stopping something. The Automatic Stay is a provision in the U.S. Bankruptcy Code that makes it illegal for creditors to attempt to collect on debts from a person who has filed for bankruptcy protection.
In effect, the Automatic Stay puts an end to all collection action, including collection phone calls, bills, pending lawsuits, wage garnishment, and bank levies. As the name suggests – it is automatic and takes effect as soon as your bankruptcy petition is filed with the Bankruptcy Court.
There are only a few exceptions to the Automatic Stay. These include family law proceedings relating to divorce or parenting, collection on ERISA-qualified pension loans, IRS tax audits, demands for tax returns, or assessment of tax liabilities.
The definition of exempt is to be “free from some liability or requirement[.]” In bankruptcy law, an exemption is applied to your belongings so you can keep them – essentially it frees your assets from the reach of your creditors.
Bankruptcy law allows you to keep your property, assets, and other belongings valued up to a certain dollar amount through exemptions. Belongings that are protected in bankruptcy are “exempt.” You get to keep the exempt property if its value does not exceed a certain dollar amount set by law.
Georgia has its own exemption scheme, which provides for exemption amounts for your house, car(s), household goods, retirement accounts, and many other belongings. You can view the entire list of Georgia exemptions here.
Most people who file for bankruptcy get to keep most or all of their belongings. Learn more in our article Filing Bankruptcy Does Not Mean Giving Up All of Your Possessions.
Bankruptcy Discharge is a good thing! Discharge is actually the goal when you file for bankruptcy.
A debt that has been “discharged” in bankruptcy is erased, gone forever, and you never have to pay it back. Debts are officially discharged in the Bankruptcy Discharge Order issued by the Bankruptcy Court at the end of a successful bankruptcy case.
We Can Help You Erase Your Debts
We help hundreds of people just like you successfully file for bankruptcy each year. But our clients are never just a number. You will not be left in the hands of a paralegal. You will have access to your attorney throughout your bankruptcy case. Call us today at (912) 351-9000 or contact us via the web to schedule a free consultation.
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The Law Office of Barbara B. Braziel proudly serves the people of Savannah, Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Springfield, Pembroke, Brooklet, Garden City, and Ludowici, Georgia.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.