Bankruptcy Exemptions
Bankruptcy is one of the processes through which people can get rid of their entire or partial debts. This process is well defined and stipulated in Georgia, and attorney Keith Cornwell, among other bankruptcy lawyers in Georgia, can help people file for bankruptcy. These lawyers help people debunk some of the myths they have about losing their entire possessions if and when they file for bankruptcy. Depending on a debtor’s financial situation, bankruptcy may be his/ her only viable option out of debts.
About Cornwell Law Firm
Cornwell Bankruptcy Law Firm is a comprehensive bankruptcy firm. Although this business is located in Duluth, GA, its bankruptcy attorneys provide their services to residents of Gwinnett and Georgia Counties. The lawyers offer free, no-obligation consultations, conduct debtors’ financial test/ analysis, advice debtors on the best debt elimination option, and help debtors execute the appropriate debt elimination plan.
Exemptions in Bankruptcy
In bankruptcy, exemptions are possessions that debtors are allowed to keep/retain when filing for bankruptcy. The properties a debtor may keep during bankruptcy depend on the bankruptcy chapter he/she files. Bankruptcy in Georgia can only be filed under Chapter 7 or Chapter 13. Chapter 13 is a financial reorganization process in which the debtor gets more time to pay off as much of his debts as he can within 3-5 years. If and when a borrower successfully makes the agreed payments within the stipulated duration, the remaining unsecured debts are forgiven. However, failure to make those payments automatically reinstates the entire debt, and creditors can take measures to recover their money. In this chapter (13) debtors can retain numerous possessions. In Chapter 7, debtors can only retain essential assets if and when it is established that they (debtors) are not in any position to repay their debts. Any property deemed luxury is sold to repay part of the debts.
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Bankruptcy FAQs
Bankruptcy Chapters and Alternatives
Georgia has two bankruptcy chapters, 13 and 7, and each chapter is executed in accordance with the laid rules subject to a debtor’s compliance with defined financial status. Georgia State, also, recognizes other forms of debt elimination including debt settlement, debt negotiation and debt discharging. In debt negotiation, debtors deliberate lenient terms of debt repayment with their creditors. In debt settlement, debtors are allowed to repay only a fraction of their debts.
Importance of Bankruptcy Lawyers
Bankruptcy is a complicated process that requires debtor’s financial analysis and the involvement of various parties. Bankruptcy lawyers in Cornwell Law Firm and other firms help debtors understand bankruptcy chapters, qualification requirements, obligations, and rights. The lawyers also help debtors file the process to avoid costly mistakes. The advice, guidance, and roles of bankruptcy lawyers cannot be underestimated during this process.
Conclusion
Cornwell Law Firm is a Georgia-based bankruptcy firm whose lawyers help Georgia and Gwinnett Counties’ residents understand and file for bankruptcy. Under Georgia bankruptcy laws, debtors can only file a Chapter 7 or Chapter 13, subject to a thorough financial screening. Whenever possible, debtors may opt for other options of debt eliminations.