Matthew T. Berry Bankruptcy Law Blog on Lawyers.com

Atlanta Chapter 13 bankruptcy involves negotiating new terms that permit qualified individuals to repay outstanding debt.  But Atlanta individuals with limited income and resources often file Chapter 7 bankruptcy, which discharges existing debt by selling assets to repay as much debt as possible, and potentially forgives remaining balances with no further payment.

Not all debt can be discharged through bankruptcy

When Atlanta individuals pursue bankruptcy under Georgia Chapter 7, they must view each debt item as fitting into one of three categories:

• Unsecured debt
• Secured debt
• Legally protected debt

Each category is covered by different rules that affect the ability to discharge the debt under the bankruptcy filing rules.

Unsecured debt

The first category of debt can typically be fully discharged through Chapter 7.  This is the debt that is not backed by collateral—such as credit and store cards, certain personal loans, and membership fees.

Secured debt

This type of debt is backed by collateral, with the two most common examples being home mortgages and car loans.  If you do not have the resources to bring payments up-to-date and continue making payment in full and on time, bankruptcy cannot stop lenders from foreclosing on homes or repossessing cars.  But an experienced Atlanta Chapter 7 bankruptcy lawyer who is helping discharge other debt may be able to help you keep your assets through other legal methods.

Legally protected debt

State and federal law prohibit discharging certain types of debt in bankruptcy.  These include the following:

• Taxes
• Child support
• Alimony
• Student loans

A skilled bankruptcy attorney can represent you in negotiations with lenders to set up new payment schedules and terms to help you fully repay legally protected debt over time.

Let an experienced Atlanta Chapter 7 bankruptcy attorney help you build a brighter future

You need an experienced, compassionate, and thorough law firm to handle your bankruptcy—and to help you find ways to repay the debt that cannot be discharged through bankruptcy.  The attorneys at Berry & Associates have helped over 25,000 Georgians get the fresh financial start they need.  We can work with you to determine which bankruptcy option is best for your financial circumstances.  Contact us to schedule a free consultation at one of our nine Georgia offices.

Berry & Associates - atlanta bankruptcy law firm2751 Buford Hwy
Atlanta, GA 30324