Chapter 7:
Do you need to stop a garnishment and wipe out credit card debt, bank loans, automobile repossessions and old tax debt?
Chapter 7 bankruptcy, also known as the "fresh start", provides relief to people struggling with unsecured debt from credit cards, medical bills, vehicle repossessions, broken apartment leases, bank loans and back taxes. Chapter 7 is a powerful tool to immediately alleviate the pressure on borrowers in from collection calls, letters, foreclosures, lawsuits, judgments, and wage and bank account garnishments. Within four months after filing a case, a client will receive a discharge order wiping clean obligations to repay most unsecured debts.
Chapter 7 is a potentially complicated process requiring careful analysis of such issues as: eligibility, whether to file; when to file; whether both spouses must file; whether homes, cars, injury settlements and other assets can be retained; the potential "unintended consequences" of filing; and whether to reaffirm debt secured by personal property or a residence. Howard Rothbloom has the experience and expertise necessary to thoroughly analyze and clearly explain whether Chapter 7 is the appropriate solution for the debt problems of people living in Cobb County, Paulding County and Cherokee County.
The Means Test
Congress changed the bankruptcy laws in 2005, making it much more difficult for people to qualify for Chapter 7. To qualify, a client must demonstrate that they lack the ability to substantially repay their debts. The process for doing so is commonly known as the “Means Test”.
To qualify for Chapter 7 relief, an individual must demonstrate that they lack the ability to substantially repay their debts. The "means test" is the formula under the Bankruptcy Code by which an individual's ability to repay their debt is calculated. Our attorneys carefully evaluate each client’s eligibility for Chapter 7 relief. We gather complete details and use them the right ways to maximize the likelihood that our clients, particularly those with higher household incomes, are eligible for bankruptcy under Chapter 7. We are well-versed in, and through litigation for our clients helped to create, the evolving law regarding the Means Test, and are skilled in putting that knowledge to use on behalf of our individual clients.
Our attorneys will carefully evaluates each client’s eligibility for Chapter 7 relief. We gather complete details and use them the right ways to maximize the likelihood that our clients, particularly those with higher household incomes, are eligible for bankruptcy under Chapter 7.
Protecting Assets
Another important consideration in Chapter 7 cases is protecting clients’ assets. “Exemptions” limit the property that a Chapter 7 debtor can retain. In most cases, Georgia law defines these exemptions. Mr. Rothbloom carefully analyzes each client’s situation and counsels clients to plan to eliminate or limit loss of assets in the bankruptcy case.
Income Taxes
Chapter 7 can also be a powerful tool for some clients to eliminate back federal and state income taxes. The Rothbloom Law Firm routinely evaluates back income taxes for dischargeability and, in appropriate cases, litigates adversary proceedings to ensure that the IRS abates those tax liabilities.
If you have questions or need assistance, call us today to speak with one of our lawyers by phone or in person.