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Georgia Bankruptcy If you are currently experiencing financial difficulties due to a job loss, layoff, illness or injury which is preventing you from paying your bills and those bills are starting to accumulate, then bankruptcy may be an option for you to consider. The first thing that I ask all of my clients before considering filing for bankruptcy is have you tried to get your debts under control by using a credit counseling service. If not, you may want to try that route before going to Bankruptcy Court. Bankruptcy should be a last resort plan of action as it affects your credit for a number of years. However, if you have already tried this and it has not provided you with the relief that you were seeking, then by all means, give me a call at (770) 396-4323 or e-mail me. Just to give you an idea that you are not alone, over the past few years, total bankruptcy filings just in the Northern District of Georgia alone have experienced an increase from 42,036 in 2002 to 50,948 in 2005 just before the bankruptcy laws changed. Although the number of filings from 2005 thru 2008 were much lower and reached 39,214 in 2008, the number of filings in 2009 increased more than 10,000 to 49,625. You can see that the 2005 changes in the law did affect filings a couple of years following that change, however, the numbers have increased and are now close to the 2005 level. Across the country the numbers for total bankruptcy filings increased from 2008 to 2009 by 32%. The total number of filings in the United States in 2009 was 1,435,425. The reason for this increase in the United States over the past year is due to the recent recession and the downturn in the economy. Bankruptcy filings are attributable to many things including the loss of a job, a marriage breakup, overextended credit card debt, a failed business venture, catastrophic illness or any number of other reasons. There are two ways a consumer can file for bankruptcy protection, one is a debt consolidation type of bankruptcy filed under Chapter 13 of the United States Bankruptcy Code. Under this type of bankruptcy, a debtor can group all of his debts and make one payment to a Chapter 13 Trustee who then pays out the creditors based on a plan the debtor files with the Court. A typical debtor under this type will be someone who has fallen behind on his mortgage or car payments but does not want to lose them to either foreclosure or repossession. Or a debtor who has tax problems whose wages have been garnished by the IRS. These are just two basic situations where a Chapter 13 case may help to get the debtor’s financial affairs under control. The other type of bankruptcy that a consumer can file is a total liquidation type of bankruptcy filed under Chapter 7 of the United States Bankruptcy Code. A Chapter 7 is generally for those debtors who have amassed a large amount of debt that is out of control and who does not have the funds available to pay these debts, even under a Chapter 13 scenario. A typical Chapter 7 case may involve a repossessed vehicle or vehicles, a home that has been foreclosed or about to be foreclosed and the debtor has decided to give up, and/or extensive credit card debt. A Chapter 7 bankruptcy will allow the debtor to legally discharge all of his unsecured debt (i.e. credit card debt, signature loans, repossession deficiency charges, or old medical bills) and get a fresh start. The above is just a very short overview of bankruptcy. For a more detailed look at what bankruptcy is, please visit my bankruptcy web site at www.4georgiabankruptcy.com or feel free to use my short information request form by clicking here. As always, I offer a free case evaluation, please complete a short information form by clicking here. Or you can call me at (770) 396-4323 or e-mail me. I would be happy to discuss further with you the facts of your case and how we would deal with your situation. Atlanta, Georgia Bankruptcy Attorney, Bernd G. Stittleburg, Esq. Call me at (770) 396-4323 All text and images contained herein are owned by and are copyright © 2004,2005, 2006, 2007, 2008, 2009, 2010 by Bernd G. Stittleburg and Stittleburg Law Offices, LLC. None of the contents of this site may be reproduced or republished without the express written permission of the copyright owner.
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