Q: I filed a Chapter 7 Bankruptcy case within the last 8 years, but again or still have debt I need help with. What can I do?
A. You may still be able to get some form of help or relief from bankruptcy proceedings. Here are a few things that may help you:
- i. If you did not receive a discharge of your debts in the prior case, you should be able to file either a Chapter 7 or a Chapter 13 Bankruptcy case;
- ii. Check the date of filing of the prior bankruptcy case. The measuring time period is from the date of filing of the prior bankruptcy case to the date of filing of the new bankruptcy case; and,
- iii. You can file a Chapter 13 Bankruptcy case if you otherwise meet the qualifications for filing a Chapter 13 case. You might also be able to file a Chapter 11 case although that may be too expensive to be practical.
Q. Do I have to take a credit counseling course?
A. Yes. Prior to filing for bankruptcy, the law now requires that all individuals take a credit counseling course or seminar from a qualified consumer credit counseling agency. The course is designed to assist you in evaluating your credit/debt situation, and to help you determine the best course of action for your particular circumstances. You must obtain a certificate of completion of this course before you can file a individual bankruptcy case. The course can be completed "on-line" on the internet at a number of credit counseling agencies.
Q. Do I have to take any other counseling courses?
A. Yes. After you file an individual bankruptcy case, you must complete a financial management course or seminar from a qualified consumer credit counseling agency. The course is designed to help you establish a budget and to better manage your spending in the future. You must obtain a certificate of completion of this course within 45 days of the date of the Creditors Meeting. This course can also be completed "on-line" on the internet at a number of credit counseling agencies.
Q. I did not complete the post-bankruptcy filing financial management course in time, and my case was dismissed. Is there anything I can do?
A. Yes. You can file a Motion to Re-open the Case to file the required Certificate of Completion. However, you will have to pay a filing fee which is almost equal to the cost of the original filing fee. (Ouch!!!). And, of course, you will have to complete the Financial Management Course, and file the Certificate. The Court will normally grant your Motion without the necessity of a hearing.
Q. Who is the Trustee, and what does he/she do?
A. There are two types of trustees involved with bankruptcy cases - the U.S. Trustee, and the standing trustee. You are only likely to meet with or deal with a standing trustee who is private individual that has been appointed to serve as trustee for cases which are randomly assigned to him/her. The Trustee for you case is responsible for representing the bankruptcy estate and its creditors. The Trustee will conduct the Creditors Meeting. An essential part of the Trustee's duties in the case is to determine if there are any debtor assets that could be successfully sold to realize money (net after exemptions and costs) for payment to the unsecured creditors.
Q. What is the Creditors Meeting?
A. The Court will assign a date about four weeks after the filing of your case for a Creditors Meeting to be held. You must attend. It will usually be held in a meeting room at the courthouse, and is conducted in an informal manner. The Creditors Meeting is intended to provide your creditors with an initial opportunity to ask you questions about your assets, and about your indebtedness. As a practical matter, very few creditors actually attend Creditors Meetings. The Trustee will preside at this Meeting, and he/she is required to examine under oath each debtor about his/her bankruptcy filings, assets and other matters. The typical Creditors Meeting only last 5 to 10 minutes.
Q. When will the Discharge Order be issued?
A. There is no specific answer to this question because each case is different. In the "typical" case, a discharge will be granted in about four (4) months after it is filed. For this to occur, the Creditors Meeting must be held and concluded, the time for the filing of creditor's Objections to Discharge must expire, the Trustee must abandon or otherwise handle any claim the bankruptcy estate has to debtor's assets, and the debtor must timely file a Certificate of Completion of the Financial Management Course. If there are open issues in the case, a granting of a discharge will be delayed.
Q. Will filing for bankruptcy "ruin my credit", and for how long?
A. This question is very common, and it is asked in a lot of different ways and for a lot of different purposes. First, credit reporting and credit scores are more a matter of the credit industry standards and practices than it is of law - especially bankruptcy law. Second, if you are filing bankruptcy, it is likely that your credit score is not a "good" score. The good news is that it actually may improve somewhat after the discharge in bankruptcy. The bad news is that the bankruptcy filing will remain a part of your credit history for a long time (about ten years). The good news is that you will be able to obtain some credit, and improve your credit score, and you are very likely to be able to obtain credit to buy a car or house. The bad news is the interest rate will be higher and that will cost you more money.
Q. What does it costs to file a Chapter 7 Bankruptcy?
A. The costs to file a bankruptcy can be divided into two primary areas as follows:
i. Case Expenses. The court charges a fee for the filing of the case. For a Chapter 7, this fee is $299.00 (in May, 2010). Additionally, you should expect to pay approximately $100 to $175.00 for the costs of other services needed in your case. These do or can include a Credit Counseling Course, a credit report, a tax report, property appraisal (on-line), a Financial Management Course, copies, travel (parking/mileage), court fee for amending a case to add creditors, and some other similar case services. (Note: Some of these fees may be waived or paid over time. Ask the provider.)
ii. Attorney Fees. If you choose to hire an attorney to handle your bankruptcy case, you will also be charged attorney fees. Attorney fees vary widely from attorney to attorney in Georgia. The complexity of the case, experience of the attorney, and other factors must be considered in determining what attorney fees will be in each case. Always have those fees explained to you in detail, and always get a signed, written fee agreement. Most attorneys will charge a retainer or lump sum amount that covers the activities that are common to most cases (including initial client meeting, case investigation, preparation of bankruptcy Petition, Schedules and other required documents, client meeting to review and sign documents, filing of documents, attending Creditors Meetings, handling case administrative duties, and similar "typical" tasks). Additionally, most attorneys will charge additional fees if it is necessary perform services not included in the retainer. The fees for these services may be charged on an item by items basis, or on an hourly fee basis. In my practice, a very high percentage of bankruptcy cases can and are handled for the amount charged as a retainer.
Contacting the Right Attorney: Bankruptcy can be a complicated matter. The responses to these Frequently Asked Questions are general in nature, and are not intended to provide legal advice for specific cases. A consultation with a Georgia bankruptcy attorney can provide you with the information you need to determine which option best addresses your circumstances. As a solo practitioner, I am able to give more time and personalized attention to my clients. I will personally communicate with creditors or banks to resolve your issues. Your case will never be handed down to a legal assistant or other staff member.
NOTICE: The services or benefits offered are bankruptcy relief under the provisions of the U.S. Bankruptcy Code. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
