tag:blogger.com,1999:blog-9330338006309390552024-02-20T13:45:39.667-05:00Brim Law's Attorney ForumInformation on Chapter 7 and 13 Bankruptcy, Business Law and Workers' Compensation Law matters.Brim Law, LLChttp://www.blogger.com/profile/07696600636838698053noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-933033800630939055.post-34047036836163792222013-02-15T15:26:00.002-05:002013-02-15T15:26:40.887-05:00CAN I KEEP MY HOUSE IN A CHAPTER 7 BANKRUPTCY<br />
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Many of my bankruptcy
clients are understandably concerned that they will lose their house in their
bankruptcy. However, this is often not
the case. Whether a person filing chapter
7 bankruptcy will lose their home depends on several factors. First, are the payments current on the
home? One of the reasons people often
file for bankruptcy is because they are behind on their mortgage payments and
they are trying to avoid a foreclosure.
While it’s true that filing a chapter 7 bankruptcy will stop a foreclosure
temporarily, if the payments are not made current, it is likely that the lender
will simply petition the court for permission to foreclose on the home. In this situation, a chapter 7 bankruptcy
will merely serve to delay the bankruptcy.
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Conversely, if the
mortgage payments are current (or close to current), then the bankruptcy filer
may be able to keep their home. In
Georgia, a chapter 7 filer has a variety of exemptions available to him. These exemptions are used to determine what
property the filer can keep and what property must be handed over to the
bankruptcy trustee for the benefit of the creditors. Georgia allows a $21,500 exemption for equity
in real estate that the filer uses as a residence. A married couple filing jointly will have a $43,000
exemption available to them.
Consequently, if you own and live in your home, are married and filing
bankruptcy jointly, are current on your mortgage payments, and have less than
$43,000 of equity in your home, you will be able to keep your home so long as
you continue to make the mortgage payments as they become due. <o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">If you have additional
questions about bankruptcy, please call Brim Law, LLC at (678) 353-3350 for a
free consultation.<o:p></o:p></span></div>
<div class="blogger-post-footer">This content may be republished provided appropriate credit is given to the author or content owenr.</div>Brim Law, LLChttp://www.blogger.com/profile/07696600636838698053noreply@blogger.com0tag:blogger.com,1999:blog-933033800630939055.post-23585320008046608602013-01-25T08:40:00.001-05:002013-01-25T08:40:16.166-05:00WILL I KEEP MY CAR IF I FILE FOR CHAPTER 7 BANKRUPTCY?<br />
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">My clients are often
concerned about keeping their car if they file for bankruptcy. Whether you will be able to keep your car in
bankruptcy depends on several factors.
First, how much equity do you have in your vehicle? In Georgia, a chapter 7 filer has a variety
of exemptions available to him. These
exemptions are used to determine what property the filer can keep and what
property must be handed over to the bankruptcy trustee for the benefit of the
creditors. Georgia allows a $3,500
exemption for equity in one’s vehicle (or vehicles). A married couple filing jointly will each
have the $3,500 exemption available to him or her. </span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">This means if your car is paid off, and the
value is $3,500 or less, you will be able to keep your car. </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">If you are still making
payments on your car, and the value of the car is no more than $3,500 greater
than your loan balance, you may be able to keep the car.</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">Generally, if you are still making payments
on the car and have no more than $3,500 of equity in your car, in order to keep
the car, you will need to (1) be current on your payments when you file for
bankruptcy, and (2) have the necessary income to continue to make the payments
as they come due after the bankruptcy petition is filed.</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">Often, if you are still making payments on
your car, your lender will require you to sign a reaffirmation agreement if you
want to keep the car.</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;">A reaffirmation
agreement ensures that your bankruptcy discharge has no effect on your
obligation to make payments for the vehicle.</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%;"> </span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">If you have additional questions
about bankruptcy, please call Brim Law, LLC at (678) 353-3350 for a free
consultation.<o:p></o:p></span></div>
<div class="blogger-post-footer">This content may be republished provided appropriate credit is given to the author or content owenr.</div>Brim Law, LLChttp://www.blogger.com/profile/07696600636838698053noreply@blogger.com0tag:blogger.com,1999:blog-933033800630939055.post-31526244187689753242013-01-04T16:29:00.000-05:002013-01-04T16:29:06.167-05:00ARE DEBTS ARISING OUT OF DIVORCE DISCHARGEABLE IN BANKRUPTCY?<br />
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Section 523 of the
bankruptcy code list the categories of debt that are excepted from
discharge. Generally, this means if a
bankruptcy filer has a type of debt that is listed in Section 523, then they
will be responsible for the debt in spite of the fact that they filed for
bankruptcy. </span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;">There
are various types of debt and/or financial obligations that may be created by
virtue of a divorce decree.</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;">Among these
are domestic support obligations, including alimony and child support.</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;">Section 523(a)(5) excepts domestic support
obligations from discharge.</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;">Therefore,
debts owed for child support or alimony cannot be discharged in
bankruptcy.</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;">Although this has been the
law for many years, prior to 2005, other types of debt created in a divorce
decree or settlement agreement might have been dischargeable.</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;">These other types of debt can include, for
instance, obligations to pay off a former spouse’s credit card or home equity
loan.</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;"> </span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;">In
2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection
Act (BAPCPA).</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;">BAPCPA made significant
changes and additions to the existing bankruptcy code.</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;">Among these additions was Section 523(a)(15),
which exempts from discharge any debt “</span><span style="background-color: white; font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;">to a
spouse, former spouse, or child of the debtor and not of the kind described in
paragraph (5) that is incurred by the debtor in the course of a divorce or
separation or in connection with a separation agreement, divorce decree or
other order of a court of record, or a determination made in accordance with
State or territorial law by a governmental unit.” In 2010, Judge Robert E. Brizendine issued a
ruling in which he interpreted this code section. Judge Brizendine held that, when read
jointly, sections 523(a)(5)&(15) render obligations created in a divorce
decree nondischargeable. In Re: <i>John
Robert Cracknell, Debtor. Cheryl Diane Cracknell, Plaintiff v. John Robert
Cracknell, Defendant</i>., Northern District of Georgia, Case Number
G09-21812-REB.</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;">Therefore, at
this point, in the Northern District of Georgia, any debts created in a divorce
decree are nondischargeable.</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;"> </span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;">This not
only impacts those who have gone through a divorce, it also means that someone
who is currently going through a divorce (or who may be considering filing for divorce) would
be wise to consider the potential impact their divorce settlement may have on
their ability to discharge those debts at a later date.</span><span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;"> </span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-indent: 0.5in;">If
you have additional questions about bankruptcy, please call Brim Law, LLC at
(678) 353-3350 for a free consultation.</span></div>
<div class="blogger-post-footer">This content may be republished provided appropriate credit is given to the author or content owenr.</div>Brim Law, LLChttp://www.blogger.com/profile/07696600636838698053noreply@blogger.com0