There are many factors to consider when deciding if filing for bankruptcy is a good idea for you. Bankruptcy is a powerful legal tool and it may be the best option to help you deal with your debt problems. It’s important to understand what bankruptcy can accomplish and what bankruptcy cannot accomplish.
Is Bankruptcy a Good Idea?
Factors to Consider…
- Would Chapter 7 or Chapter 13 bankruptcy help you handle your debt problem?
- Chapter 7 erases credit card debt, medical debt, and many other unsecured debts. Generally, it is the simplest and quickest form of bankruptcy. And takes roughly four to six months to complete.
- Chapter 13 is a reorganization of debt and creates a three to five-year repayment plan. When necessary, the repayment plan gives you a chance to catch up on mortgage arrears, missed car payments, back taxes, and other debts.
- Are more of your debts “dischargeable” (can be erased) through bankruptcy? Or, are most of your debts “nondischargeable” and would still need to be paid back even if you file for bankruptcy?
- Are you eligible for the chapter of bankruptcy you want to file? Do you qualify for bankruptcy?
- Do you have meaningful alternatives to filing for bankruptcy? Bankruptcy is not the right solution for everyone.
- Will you be able to keep most or all of your assets and personal belongings?
- Bankruptcy law provides for you to keep the property, assets, and other belongings valued up to a certain dollar amount through exemptions. Property that is protected in bankruptcy is known as “exempt property.” You get to keep the exempt property if its value does not exceed a certain dollar amount.
- Georgia law allows for exemption amounts for your house, automobile(s), household goods, retirement accounts, and many other belongings.
- You can view a full list of the Georgia exemptions here.
- Have you made recent charges or incurred new debt that may not be dischargeable in bankruptcy?
- Is now the right time to file?
Depending on your situation, there are likely other factors to consider too! Bankruptcy is a complex area of law, but don’t let that deter you. Filing for bankruptcy protection may be a good idea for you―in fact, because it may get you out of debt, bankruptcy may be one of the best decisions you could make for your financial future.
Filing for Bankruptcy Protection
If you are exploring how bankruptcy can help you get out of debt, we encourage you to seek the counsel of an experienced bankruptcy attorney.
Here at the Law Office of Barbara B. Braziel, we have over 35 years of bankruptcy experience. We are the premier bankruptcy law firm in Savannah, GA and we practice exclusively in bankruptcy law. We invite you to get to know us here and read about the clients we’ve helped here.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code. Find out more about Bankruptcy in our guide: All About Bankruptcy.