South Atlanta Bankruptcy Blog

If you are one of the millions of Americans struggling with insurmountable debt and financial stability, then you have come to the right place for help. South Atlanta Bankruptcy's attorneys Gina Karrh and H. Brooks Cotten will be using this blog to provide information about bankruptcy. Don't hesitate to call us TODAY!

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Team Blogs
    Team Blogs Find your favorite team blogs here.
  • Login
    Login Login form

Redemption in Chapter 7: Keep Your Car While Lowering the Payments

Posted by on in Chapter 7

In Chapter 7, there are three possibilities for dealing with a debt that is secured by collateral, one of which is a redemption. Redemptions are usually only done with regard to vehicles, though it would be theoretically possible to do it with other types of personal property too. This article deals with redeeming cars. This is possible in Chapter 7, but not Chapter 13.

First, with the agreement of the creditor, you may keep the car, and continue your obligation to pay for it. This is called a reaffirmation. The effect is to leave the car out of the bankruptcy and continue to pay for it, usually under the terms of the original contract. A reaffirmation usually requires that you be current in your payments on your car note.

The second possibility is to surrenderthe collateral. In that case, you lose the car to the creditor, and the debt is discharged. The creditor cant collect any money later. This makes sense when you cant afford the debt, or if something is wrong with the collateral so that you prefer to pursue other options. You can certainly surrender the collateral even if you are behind on the debt and a reaffirmationis not possible.

...
Continue reading
Hits: 124
0

What Happens When A Co-Signer Files Chapter 7 Bankruptcy?

Posted by on in Chapter 7

Under contract law, a “signer” and a “co-signer” are both obligated to pay a debt, and a creditor can legally collect the whole amount of the debt from either one. It doesn’t matter which name is first on the contract. If one or the other files bankruptcy, that might change.

If a person (whether he’s a “signer” or a “co-signer”) files Chapter 7 bankruptcy, that person’s obligation to pay the debt is wiped out (unless, of course, that person “reaffirms” or re-obligates himself to pay the debt). Regardless of the what the debtor chooses to do in his Chapter 7, the non-filing party will remain obligated to pay the debt, and the creditor can still collect from him.

Suppose a parent and a child are “co-signers” on the child’s car note. The child is not paying the debt, surrenders the car, and then files chapter 7 (or files chapter 7, and then surrenders the car). In that case, the child’s obligation to pay the debt is wiped out, but the car lender can still collect any deficiency owed from the parent who signed the note, but who did not file bankruptcy.

...
Tagged in: Bankruptcy Chapter 7
Continue reading
Hits: 8235
0

Using Chapter 7 to Unfreeze Bank Accounts and Recover Garnishment Proceeds

Posted by on in Chapter 7

How it starts:

Under general principles of contract law, if a person borrows money and is late in repaying it, the lender may choose to sue for damages to collect the debt. A lender starts a civil suit by filing a “summons and complaint”, usually in state court. The summons and complaint are “served” (delivered to) the borrower to let him know that he is being sued. The method of service should be reflected on the “return of service” noted in the court’s file.

A suit that has been properly served requires that the defendant/borrower file an “answer” within 30 days of having been served with the suit. The answer should state a valid reason why the borrower is not legally obligated to pay the debt as stated in the complaint.

...
Continue reading
Hits: 5813
0

What Happens to Tax Refunds in Chapter 7?

Posted by on in Chapter 7

A tax refund is money that the government owes you because you paid in more (usually withheld from your pay) than what you owe in taxes. Since someone else owes you money, a tax refund is an “asset” like your bank account or your car, and it must be disclosed in the bankruptcy petition.

In a Chapter 7, if you have not yet received your refund, you should disclose it, and then your lawyer will claim an “exemption” in it so that you keep it. You can exempt up to $5,600.00 per debtor, but this same “exemption” must be used to protect bank accounts and other miscellaneous property.

If you have already received the tax refund before you file bankruptcy, then it is not an asset at the time you file, and you would not need to disclose it or to use your available exemptions to protect it as a tax refund. However, if the money was simply deposited in your bank account, you would then exempt that money as a bank account, but not as a tax refund. The same $5,600.00 limit would apply.

...
Continue reading
Hits: 4175
0

Effect of Filing Chapter 7 on Foreclosure: Questions and Answers

Posted by on in Chapter 7

Q: I fell behind on the house payments. My bank stopped accepting payments, and I received a letter saying that my mortgage has been “accelerated”, and that the matter has been referred to a lawyer for foreclosure. What does that mean? Will filing Chapter 7 help this situation?

A: When you file a Chapter 7 bankruptcy, an “automatic stay” goes into effect that instantly freezes the ability of a lender to proceed with foreclosure ...whether the lender knows of the bankruptcy filing or not. (If a foreclosure has already taken place by the time you file, however, a bankruptcy will not retroactively reverse it).

Q: What is the effect of filing a Chapter 7 if the house is in foreclosure?

...
Continue reading
Hits: 5003
0

Search the Blog

Contact us

If you want more information, fill in this form. We will get back to you as soon as possible.

captcha

Archive

January
February
March
April
July
August
September
October
December
February
March
April
May
June
July
August
September
October
November
December
February
March
April
June
July
August
September
October
November
December
January
February
March
April
June
July
August
October
November

Please call us to discuss your particular situation.

With our help, starting the process will be less stressful and easier than what you might think.

Call Now!