Madison County, GA Bankruptcy Chapters 11 and 13

Madison County, GA Bankruptcy Chapters 11 and 13

An individual can file under chapter 11 in Madison County, GA but, the provisions of chapter 11 are mostly used to reorganize a business. Chapter 11 allows the debtor to run its business through a plan of reorganization, that must meet certain legal requirements. By creating chapter 11, the Congress provided the debtor an opportunity to restructure its finances so that it can continue to operate, provide employment, pay its creditors, and provide a return for its stockholders.

When the bankruptcy means test dictates that you aren’t eligible to file for Chapter 7 Bankruptcy in Madison County, GA you can instead choose to file for Chapter 13 Bankruptcy. A Chapter 13 Bankruptcy is a court administered repayment plan which can allow you to retain your most important assets while paying off your debts over a period of time. If you file for Chapter 13 Bankruptcy you may be able to significantly lower your medical bills. Chapter 13 will allow 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 compels unsecured creditors like medical providers, hospitals, and doctor’s to accept pennies on the dollar.

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Madison County, GA Bankruptcy

Madison County, GA Bankruptcy

Bankruptcy case in Madison County, GA starts with the filing of a petition with the bankruptcy court. The filing of the petition creates a bankruptcy estate, which usually consists of all the assets of the person filing the bankruptcy petition. An independent taxable entity is created if the bankruptcy petition is submitted by an individual under chapter 7 or chapter 11 of the US Bankruptcy Code.

A bankruptcy petition is a document that starts the bankruptcy process. A petition can 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 should be as provided in Form 1 of the Official Forms prescribed by the Judicial conference of the United States. The Official Forms can be obtained at legal stationary stores.

The documentation necessary at the time of filing for bankruptcy in Madison County, GA has increased. For example, you should provide additional information that details all income and expenses. When the expenses exceed the IRS allowance, a special circumstances document should be submitted which explains the necessity of the extra expense incurred. A statement of accuracy must also be submitted, along 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

Athens, Georgia Bankruptcy discharge

Athens, Georgia Bankruptcy discharge

In a Chapter 7 bankruptcy, the individual files a petition in the court seeking to discharge all debts. The individual may have secured debt and unsecured debt and how each of these is handled can vary from case-to-case. A debtor seeking protection under chapter 7 of the Federal Bankruptcy Code may have to give up a part of their personal property in order to satisfy some of the debts owed to the creditors.

The common grounds for denying a discharge to an individual debtor in Athens, Georgia include:
1. Failure of the debtor to keep or produce adequate books or financial records;
2. Debtor’s failure to explain satisfactorily any loss of assets;
3. The debtor committed a bankruptcy crime such as perjury;
4. The debtor failed to obey a lawful order of the bankruptcy court; or
5. Fraudulent transfer, concealment or destruction by debtor of property that would have become property of the estate.

The Chapter 13 debtor in Athens, Georgia is eligible to obtain a discharge upon successful completion of entire payments under the repayment plan. In return for the willingness of the Chapter 13 debtor to undergo the discipline of a repayment plan for three to five years, a wider discharge is available under Chapter 13 than in a Chapter 7 case.
Generally, the individual in Athens, Georgia is discharged from all debts under the plan or debts that are rejected, except for the following:
1. Certain long-term obligations such as a home mortgage;
2. Alimony and Child support;
3. Debts for most government-funded or guaranteed educational loans or benefit overpayments;
4. Debts arising from death or personal injury caused by driving while intoxicated or under the influence of drugs, which also refers to debts for restitution or a criminal fine included in a sentence on the debtor's conviction of a crime.

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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, Georgia Chapter 20 Bankruptcy

Athens, Georgia Chapter 20 Bankruptcy

Bankruptcy will discharge most of your debts. A debt discharged in bankruptcy is no longer enforceable against you personally. The debtor is no longer required to pay the debt, or the portion of the debt that has been discharged. You cannot be subject to collection activity on the debt, including being sued on the debt. Creditors can, however, move to seize any secured asset on which there is a valid lien that has not been discharged (or cleared) by the bankruptcy court. A bankruptcy discharge serves to erase the debt and give the debtor a new start financially. Some debts must still be paid. It is a rather lengthy list, but the following debts will not be discharged: taxes; spousal and child support; debts arising out of willful misconduct and or malicious misconduct by the debtor; liability for injury or death from driving while intoxicated; non-dischargeable debts from a prior bankruptcy; student loans; criminal fines and penalties and forfeitures. Bankruptcy does not discharge the debtor from debts incurred for money, property, services, or an extension, renewal, or refinancing of credit, to the extent obtained by false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor’s or an insider’s financial condition.

A so-called "Chapter 20" bankruptcy is the process filing of a "Chapter 7" bankruptcy to discharge unsecured debts, followed by a "Chapter 13" bankruptcy to allow the debtor to catch up on mortgage payments The 2005 Bankruptcy Reform Act attempts to limit "Chapter 20" bankruptcies by imposing limits on the filing of successive bankruptcies. Under existing bankruptcy law a Chapter 13 bankruptcy may be filed only once every two years, and three years must be over after the filing of a Chapter 7 bankruptcy before a Chapter 13 filing. Some debtors try to circumvent this restriction by filing for Chapter 13 protection while the Chapter 7 petition is still pending. That option is not available in all courts. In a "Chapter 20" bankruptcy, debtors should know that missing even a single mortgage payment after filing the initial "Chapter 7" petition may cost them their ability to save their house in a later "Chapter 13" filing. Be careful: some judges and creditors consider the move as a scam. Creditors have the right to oppose and the judge can dismiss the action. Some judges will allow the second filing, if there is a legitimate reason.

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Chapter 11 Bankruptcy in Athens, Georgia

Chapter 11 Bankruptcy in Athens, Georgia

Federal bankruptcy rules govern how companies in Athens, Georgia go out of business or recover from deep financial crisis. A bankrupt company might file under Chapter 11 of the US Bankruptcy Code to reorganize its activities and try to become profitable again. The company continues to run the daily business operations, but all significant business decisions should be approved by a bankruptcy court.

A debtor under Chapter 11 can enter into an agreement with creditors under which all or a part of the business continues. The debts of the business are restructured to allow the debtor to continue his business operation. In general any partnership, corporation or limited liability entity except a governmental unit can be a debtor in a Chapter 11 proceeding in Athens, Georgia. Under Chapter 11, only the debtor may submit a plan of reorganization within 120 days of the filing of the bankruptcy proceeding. Under a typical reorganization plan, the debtor will restructure his debts. Such a plan will generally provide for the repayment of loans secured by real property to be paid over an extended time. Intermediate term loans are generally proposed to be paid over the remaining useful life of the collateral, which is generally five to ten years.

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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

Bankruptcy and Tax in Athens, Georgia

Bankruptcy and Tax in Athens, Georgia

If you are an individual debtor in Athens, Georgia who files for bankruptcy under chapter 7 or 11 of the US Bankruptcy Code in , a separate ‘‘estate’’ is created comprising of property that belonged to you before the date of filing. The bankruptcy estate will be a new taxable entity, completely separate from you as an individual taxpayer.

A penalty for failure to pay tax, including failure to pay estimated tax, will not be imposed for any period during which a title 11 bankruptcy case is pending provided:
1. The tax was incurred before the earlier of the order for relief or (in an involuntary case) the appointment of a trustee, and
2. The bankruptcy case was filed before the due date for the tax return (including extensions) or the date for imposing the penalty occurs on or after the day the bankruptcy case was filed.

This relief from the failure-to-pay penalty is not applicable to any penalty for failure to pay or deposit tax withheld or collected from others and required to be paid over to the US government. Nor does it apply to any penalty for failure to timely file a return.

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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, Georgia Chapter 11 and 13

Athens, Georgia Chapter 11 and 13

Chapter 11 bankruptcy in Athens, Georgia allows a debtor to enter into an agreement with creditors under which all or a part of the business continues. The debts of the business are restructured to permit the debtor to continue the operation of the business. In general any partnership, corporation or limited liability entity except a governmental unit can be a debtor in a Chapter 11 proceeding. Under Chapter 11, only the debtor can submit a plan of reorganization within 120 days of the filing of the bankruptcy case. Under a typical reorganization plan, the debtor attempts to restructure his debts. Such a plan will generally provide for the repayment of loans secured by real property to be paid over an extended time. Intermediate term loans will be proposed to be paid over the remaining useful life of the security, which is generally five to ten years.

Chapter 13 bankruptcy filing in Athens, Georgia permits the individual debtor to pay down his debts, either the entire amount or a part of it, using a payment plan under the supervision of the court. Those who file under this chapter can keep their assets with them while they stick to the plan or after they have paid off the required portion of debt. This chapter involves the rehabilitation of the debtor to let him or her to use future earnings to pay off debts.


A chapter 13 bankruptcy is also referred to as a wage earner's plan. Under this chapter, debtors set up a repayment plan to make installments to creditors over three to five years. Chapter 13 is especially for individuals with regular income who want to clear their debts but are unable to do so in a timely method. The purpose of this chapter is to enable financially distressed individual debtors to propose and carry out a repayment plan under which the debts are paid off over an extended period of time generally three to five years. During this time the law forbids creditors from starting or continuing collection efforts.

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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