Answering Your Bankruptcy Questions - Gwinnett County, Georgia

What is the difference between Chapter 7 and Chapter 13?

• Chapter 7 is liquidation of your debt. Your unsecured debt is discharged, but you must pass a means test to qualify for Chapter 7 protection.
• Chapter 13 is a reorganization of your debt into the creation of a 3-5 year repayment plan. The overall amount to be paid back during the course of the plan is dependent on your debt to income ratio.

Didn’t the new bankruptcy laws make it impossible to file for Chapter 7?

• While the means test does make it somewhat more difficult to qualify for Chapter 7 bankruptcy, it is not impossible.
• The 2005 bankruptcy laws have resulted in an increase in number of those filing for Chapter 13, but a significant number of people still qualify for 7.

Will I lose everything if I file for bankruptcy?

• When you file for personal bankruptcy, an automatic stay is put into place to keep creditors from seizing your car, other property or wages.

Will I lose my house?

• Bankruptcy filing also stops foreclosure, removing the added pressure of the possibility of losing your home. Bankruptcy is good news for those who have been affected by the current housing market.

Will bankruptcy ruin my credit rating?

• Bankruptcy actually improves your debt to income ratio, which improves your credit. After filing for Chapter 7 or meeting your repayment obligations under Chapter 13, you can begin to build credit once again.

Can I discharge student loans?

• Student loans cannot be discharged through filing for bankruptcy except under very particular circumstances.

What about medical bills?

• Medical bills are considered unsecured debt and can be discharged.

I’ve got a lot of debt in unpaid taxes. What can I do?

• While not all tax debt can be discharged, some can. Heavy tax penalties can usually be discharged. The best thing to do is to talk to a bankruptcy lawyer.

What makes your firm different from other firms?

• The firm of George R. Belche, Attorney at Law offers personalized service. When you come to us to help you through a bankruptcy, one lawyer, George Belche, handles your case from start to finish.

Get out from under the weight of financial pressure. At the firm of George R. Belche, Attorney at Law, we have been helping clients file for bankruptcy for 15 years. We look forward to helping you through the bankruptcy process from beginning to end. Contact us today for a free initial consultation — we’ll answer all your questions clearly and honestly.

"We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code."