Medical Bills and Bankruptcy in Athens, GA

Medical Bills and Bankruptcy in Athens, GA

Medical bills from a temporary illness or bills due to chronic health problems bring many people to the edge of financial downfall in Athens, GA. Even in situations with the best medical insurance available, taking time off of work and loss of income can adversely affect a person's finances. If you have substantial medical bills, filing a Chapter 7 Bankruptcy can eliminate your medical bills completely. If the bankruptcy means test determines you qualify to file for Chapter 7, it will allow you to get rid of medical bills, hospital charges, doctor bills, medical collections, dental bills, and also most type of medical debt. Medical bills are considered unsecured debts, and will be considered in bankruptcy similar to credit cards. So, medical bills can be totally discharged in a Chapter 7 Bankruptcy.

Filing a bankruptcy case in Athens, GA prevents creditors from initiating action against you. What prohibits creditors from taking steps is the automatic stay - an injunction passed by the court as soon as you file the case. This automatic stay continues until the case is over. On motion, and after a hearing before the bankruptcy judge, a creditor can get an order for relief from the stay. An order granting relief from the automatic stay permits a creditor to take certain permitted actions, which will be listed in the order, to collect a debt against you.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County - Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Athens, GA Bankruptcy Lawyer

Athens, GA Bankruptcy Lawyer

The bankruptcy lawyer’s job in Athens, GA is difficult, and a lot of responsibility for ensuring checks is put on the attorney. The attorney’s signature certifies that the petition has been reasonably inspected, and the proceeding does not abuse the bankruptcy process. The attorney should also certify that the proceeding is acceptable under the existing law or that it is a good faith argument for the extension/modification of the existing law. In case of a violation, the lawyer fees and the debtor cost can be calculated and made payable to the trustee.
You first consultation with your bankruptcy lawyer in Athens, GA is generally free. At the first meeting, you must honestly explain your situation to the lawyer and try to determine if you are comfortable with the attorney and their staff. At the same time the attorney will give you feedback on your situation and your options available.
When conversing with the attorney in Athens, GAcheck how long he or she has been in practice, what the specifics of their specialization are, approximately how many cases they have handled and what your expectations should be from the attorney in terms of representation. Also find out if the attorney will be personally attending to your case and that it is not passed on to a junior attorney or staff. Ask as many questions as you need and make sure that you are comfortable with the fact that you are appointing him as your bankruptcy lawyer.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County - Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Athens, GA Bankruptcy Chapters 11 and 13

Athens, GA Bankruptcy Chapters 11 and 13

An ordinary person can file under chapter 11 in Athens, GA but, the provisions of chapter 11 are often used to reorganize a business. Chapter 11 allows the debtor to run its business through a plan of reorganization, which should fulfill certain statutory criteria. By legislating chapter 11, the Congress provided the debtor a chance to restructure its finances so that it can continue to operate, provide employment, pay its creditors, and produce a return for its stockholders.

In situations where the bankruptcy means test says that you cannot file for Chapter 7 Bankruptcy in Athens, GA you may instead opt to file for Chapter 13 Bankruptcy. A Chapter 13 Bankruptcy is a court administered payment plan that will permit you to keep your most important property while repaying your debts over a period of time. If you file for Chapter 13 Bankruptcy you might be able to substantially reduce your medical bills. Chapter 13 will permit you to pay off the medical bills over a 3 to 5 year period of time based on your disposable income. Many times, Chapter 13 Bankruptcy forces unsecured creditors such as medical providers, hospitals, and doctor’s to accept pennies on the dollar.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County - Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Athens, GA Bankruptcy

Athens, GA Bankruptcy

Bankruptcy case in Athens, GA begins with the filing of a petition with the bankruptcy court. The filing of the petition creates a bankruptcy estate, that usually consists of all the assets of the person seeking bankruptcy protection. A separate taxable entity is established when the bankruptcy petition is submitted by an individual under chapter 7 or chapter 11 of the US Bankruptcy Code.

A bankruptcy petition is the document that initiates the bankruptcy process. The petition may be a voluntary petition, that is filed by the debtor, or it can be an involuntary petition, that is filed by creditors who fulfill certain requirements. The voluntary petition must be as provided in Form 1 of the Official Forms prescribed by the Judicial conference of the United States. The Official Forms may be purchased at legal stationary stores.

The documentation necessary at the time of filing for bankruptcy in Athens, GA has increased. For instance, the debtor must provide additional information that details all income and expenses. If the expenses exceed the IRS allowance, a special circumstances document has to be submitted which reasons the necessity of the extra expense incurred. A statement of accuracy must also be submitted, together with these special circumstance documents.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County - Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Madison County Georgia calculating taxes in bankruptcy law firm

Madison County Georgia calculating taxes in bankruptcy law firm

determing taxes in bankruptcy in Oconee County GA

The initial step in the determination of the tax due is filing a return. As an individual bankrupt debtor, you should submit a Form 1040 for the tax year involved, while the trustee of your bankruptcy estate must file a Form 1041. A bankrupt corporation, or a receiver, bankruptcy trustee, or assignee having possession of, or holding title to, significantly all the assets or business of the corporation, must submit a Form 1120 for the tax year.

After the return is submitted, the Internal Revenue Service may reassess the tax liability shown on the return. When the administrative remedies within the Service have been used up, the tax issue can be litigated either in the bankruptcy court or in the United States Tax Court.

The trustee of the bankruptcy estate may request a calculation of any unpaid liability of the estate for tax incurred at the time of the administration of the case by the filing of a tax return and a request for such a determination with the Internal Revenue Service. Except when the return is fraudulent or has a material misrepresentation, the trustee, the debtor, and any successor to the debtor is discharged from liability for the tax upon payment of the tax:
As decided by the IRS,
As decided by the bankruptcy court, following the completion of the IRS examination, or
As notified on the return, if the IRS does not:
Inform the trustee within 60 days after the request for the determination that the return has been chosen for examination, or
Complete the calculation and inform the trustee of any tax due within 180 days subsequent to the request.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County - Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Athens-Clarke County GA Bankruptcy attorneys

Athens-Clarke County GA Bankruptcy attorneys

Bankruptcy expenses in Oconee County GA

The bankruptcy estate is permitted a deduction for administrative expenses and any fees assessed. These fee are usually deductible as itemized deductions subject to the 2% floor on miscellaneous itemized deductions. But, administrative expenses attributable to the conduct of a trade or business by the bankruptcy estate or the production of the estates rents or royalties are deductible in determining the adjusted gross income.

The expenses can be disallowed under other provisions of the Internal Revenue Code, such as disallowing certain capital expenditures, taxes, or expenses relating to tax-exempt interest. Such expenses may only be deducted by the estate, and never by the debtor.

When the administrative expenses of the bankruptcy estate are higher than its gross income for the tax year, the excess amount may be carried back 3 years and forward 7 years. The amounts may only be carried back or forward to a tax year of the estate and not to the debtors tax year. The excess amount to be carried back or forward is considered a net operating loss and must first be carried back to the earliest year possible.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County - Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

Oconee County GA Chapter 11 Bankruptcy Assets attorneys

Oconee County GA Chapter 11 Bankruptcy Assets attorneys

Chapter 11 Bankruptcy Assets in Athens-Clarke County Georgia

Bankruptcy rules determine which of your assets form part of the bankruptcy estate. These assets are treated the same in the estates hands as they were in the your hands.

The gross income of the bankruptcy estate includes all of the debtors gross income to which the estate is entitled under the bankruptcy law. The estates gross income also comprises of all income the estate is entitled to and receives or accrues subsequent to the beginning of the bankruptcy proceeding. Gross income of the bankruptcy estate does not include amounts received or accrued by the debtor before the bankruptcy petition date.

The bankruptcy estate calculates its taxable income the same way as an individual determines his or her taxable income. The estate may elect one personal exemption and either individual itemized deductions or the basic standard deduction for a married individual filing a separate return. The estate is not allowed take the higher standard deduction allowed for married persons filing separately who are 65 or older or blind. The estate uses the rates for a married person filing separately to determine the tax on its taxable income.

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Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County - Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy