In Georgia, liquidation is achieved through a chapter 7 bankruptcy claim. The claim provides protection such as an automatic stay. It is completed in under six months and provides fast debt settlement. The following are steps for filing a successful claim for Chapter 7 Bankruptcy in Jonesboro GA.
Assess the Consumer’s Debt
The attorney reviews the consumer’s debts. The primary concerns with these debts are loans in which a property was used as collateral. If the debt is delinquent, the lender takes action to repossession it. Any property that is used as collateral isn’t sold through liquidation due to a previous obligation. However, the consumer could acquire an approval from their creditor to sell the property.
Identify Exemptions for the Property and Assets
The exempted values are identified. Under Georgia’s state laws, a homestead exemption applies to the primary residence. This value begins at $21,500 for couples. Further exemptions include $250 each month for health care-related benefits. Their jewelry receives a $500 exemption. Once all exempted values and properties are identified, they are excluded from the claim.
Make Choices About Property and Assets
In these claims, the consumer has three choices concerning assets. They redeem the asset by paying off the remaining debt. They reaffirm the debt and include it in the bankruptcy claim, or they surrender the property to the creditor. These choices apply to secured debts such as mortgages and auto loans.
File Petition and Forms
Next, the attorney files the petition and all forms for the bankruptcy. In emergent circumstances, the documents are reduced to two pages. This allows the consumer to file the claim faster and acquire the automatic stay. They have fourteen days to file the remaining bankruptcy forms.
Appear at the Meeting of Creditors
The trustee verifies information found on the forms. They provide a history of all financial transactions that occurred in the last six months. They evaluate tax returns and income statements. They obtain all mortgage contracts, automobile titles, property deeds, and bank statements. They use the information to identify all non-exempt properties. The properties are liquidated through the bankruptcy. Appraisals are obtained for the properties, and creditors file disputes for any overlooked debts.
In Georgia, a trustee manages the distribution of funds from the liquidation to creditors. Upon completion, a majority of the debts are settled for the consumer. Consumers who want to file for Chapter 7 Bankruptcy in Jonesboro GA visit website today.