Effects of Bankruptcy

The most common concern among individuals filing for bankruptcy is the forfeiture of assets such as homes and vehicles. In the state of Georgia, filing for bankruptcy before a foreclosure or a repossession takes place will prevent those forfeitures and they cannot proceed without prior permission from the Bankruptcy Court. In fact, filing Chapter 13 bankruptcy can even force a creditor to return a vehicle that has already been repossessed.

Depending on the type of bankruptcy you file, the effects of bankruptcy can look quite different. In Chapter 7 bankruptcy, there is not likely to be many non-exempt assets. This means that most individuals and married couples who file Chapter 7 retain their property and discharge most, if not all, of their other debts. In Chapter 13 bankruptcy, which focuses on the reorganization of a debts, ownership of assets with significant equity, such as homes and vehicles, can almost certainly be retained.

The most notable effect of bankruptcy is that your creditors will be able to report it on your credit report for up to 10 years from the date you filed your case. While this can make it harder in the short term to secure loans and financing at favorable rates, it does not preclude you from borrowing in the future, and for this reason should be considered a small concession in the pursuit of eliminating one’s debt obligations.

You may be worried about the effect of bankruptcy on your personal and occupational life. However, pursuant to the United States Bankruptcy Code, employers cannot discriminate against those who file solely on the basis of having filed for bankruptcy.

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The information contained on each page of this website is for informational purposes only and is not intended to be legal advice. The accuracy thereof and the results of your legal matter are not guaranteed by Duncan & Brow, Attorneys at Law, LLLP.
Duncan & Brow, Attorneys at Law, LLLP, has been designated by Congress and the President of the United States as a Debt Relief Agency, and helps to provide debt relief under the United States Bankruptcy Code. Matthew James Duncan and Kathryn Anne Brow Aho are members of the State Bar of Georgia, and the United States District Courts and Bankruptcy Courts for the Southern District of Georgia and the Middle District of Georgia.
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