Filing for bankruptcy can be intimidating and many people are ashamed of doing it. A real issue, though, is not using the help of a lawyer as the process can be a bit tricky. Missing deadlines, required forms slipping through the cracks and not understanding certain rules or terms can be detrimental. Another issue is not understanding what bankruptcy is and what it means.
The Facts and Terms
The purpose of filing for bankruptcy is to protect a person from creditors and allow for their assets to be shielded from future claims. Here are some terms to help you understand the basics of filing:
- Exempt: if you are the debtor and are filing for bankruptcy, you’ll need to list all of your property that is exempt (aka those items you are able to keep). These are items that are necessary for your everyday living.
- Non-exempt: items listed that may be taken and liquidated by creditors. You need to be as honest as possible as there can be repercussions for fraudulent actions or concealing information. Your attorney will explain how this works.
- Court Involvement: a court must decide whether or not you qualify to declare bankruptcy.
- Chapter 7: this type of bankruptcy is most often used to discharge unsecured debts. You must be current on your mortgage and car payment when you file if you want to keep those items.
- Chapter 13: this is a repayment form bankruptcy; a debtor is given additional time to repay past-due secured payments.
- Chapter 11: corporations and businesses typically file fort this type of bankruptcy.
These are just a few helpful terms, but there is so much you can learn about filing for bankruptcy. We
can help guid you through this hard time with our experienced bankruptcy attorneys.
How Burrow & Associates, LLC. Can Help
Burrow & Associates, LLC is a full-service bankruptcy law firm serving the entire Atlanta, Georgia, metro area. We value each of our clients and want to help them successfully file for bankruptcy and defend their assets. For more information about Burrow & Associates, LLC and the types of cases we handle as an Atlanta-area and Athens personal injury law firm, contact one of our local offices today.