In order to prepare and file your bankruptcy, you will be required to provide all of your financial information to our office. You are required by law to list the name, address including zip code, account number, amount you owe and other important information concerning your creditors. A creditor is a person or company you owe money to on an ongoing basis. There are generally three types of creditors which are discussed later in this information sheet. A secured creditor is such as your mortgage company, banks or loan companies you financed cars, furniture, major appliances, electronic equipment, campers, lawn equipment, computers, stereo systems, and etc. with, credit card companies, charge cards with merchants. Someone who has a court judgment against you is secured and known as a judgment creditor. Judgment creditors may require special attention in your bankruptcy case; therefore, it is very important you notify your attorney of any judgment creditor and provide the attorney with all documents you may have concerning the law suit filed against you. If you no longer have the documents involved in the judgment, go to the court where you were sued and get a copy of the complaint, answer and the judgment. If you cannot provide this important information about the debt you owe as a result of the judgment, the debt may not be discharged.
You must also provide this office with detailed information concerning your financial affairs for the past several years. You will be required to provide this information in great detail; therefore, it is most important you provide all information requested on the forms we ask you to fill out. Remember, if it is discovered by the Court or trustee that you have not provided the information required, you may not be granted a discharge or your case may be dismissed. You are also required to list all of your real property (houses and land) and personal property in your schedules. Again, if the Court or trustee discovers you failed to list items of value in your schedules, you may not be given a discharge and/or you may lose the property you failed to list. We prefer you give us the most recent statement, invoice, contract, coupon book, copies of law suits and judgments, any documents served on you by a law enforcement officer, foreclosure notice, notices and letters from collection agencies or lawyers rather than handwritten or type written notes.
It is suggested you acquire a current credit report to use as a check system in determining you have listed all of your creditors. We will not, however, use your credit report in preparing the bankruptcy petition and schedules. The credit report is strictly for your use in determining who you owe money. Remember, as a general rule utility companies (gas, electric and phone companies) may not report to credit reporting agencies; therefore, you should not rely on the credit report to determine this type of creditor. Additionally, you may have had a contract or lease agreement you breached that has not been reported to a credit reporting agency.
Many people ask I do not want to bankrupt against my house and car, do I have to list my mortgage company and car finance company? Yes, you do. You must list all companies and people, including family and friends; you owe money to at the time of your filing. If you file a Chapter 7, your mortgaged home or financed cars and other financed possessions may be exposed to foreclosure or repossession if you are not current when you file and remain current during the pendency of your bankruptcy.
Generally speaking, in a Chapter 7, if you are current with your mortgage payments, car payments, and the payments to other secured creditors when your case is filed and remain current throughout the pendency your bankruptcy, you probably will not have any problems reaffirming those debts and keeping your house, cars and other secured items. Secured creditors do not want your house, car and other secured items - they want your monthly payment. Therefore, it is very important to be current and remain current on the secured debts you wish to keep during the bankruptcy process. If you are not current with your secured payments prior to filing and/or you fall behind in your secured payments prior to your discharge, you may be assured the secured creditor will file a motion for relief from the bankruptcy stay. With very rare exceptions, the Court will grant their motion and the creditor will foreclose or repossess the secured house, car or other secured item. Remember, if a secured creditor files a motion for relief and you request your attorney get involved in negotiating a settlement with the creditor, an additional fee will be required. Generally, creditors will require you make up all payments missed plus pay their attorney fees, if any, before they agree to dismiss their motion for relief.
WHAT YOU MAY KEEP
In Georgia, debtors may retain:
1. $10,000 in real estate equity of your principal residence (the amount of property value in excess of liens on the real property);
2. Social Security benefits, unemployment compensation, veteran benefits, disability benefits, and alimony;
3. $3,500 in equity in vehicles;
4. $300 in each of various items of household furnishings and wearing apparel, up to a total value of $5,000;
5. $500 in jewelry;
6. $1,500 in professional implements, books and tools of the trade; and
7. $600, plus $5,000 of the unused portion of the principal residence exception as a wildcard.
8. Pre tax IRA'S, 401K'S and most other pretax savings and retirement' accounts no matter how much money you have in the account.
There are other less common exemption rights. In addition, if the creditor holding a lien on a particular item of property consents, and the Bankruptcy Court finds that it is in your best interest, you may retain additional property by reaffirming the debt with the creditor and paying the creditors’ claim pursuant to which you had previously agreed. It is important to remember that in a Chapter 7 the creditor does not have to let you reaffirm the debt and keep the secured property.
