ATLANTA, GA, September 26, 2013 /24-7PressRelease/
-- One of the concerns that many people have when they are considering filing for bankruptcy is that they may lose their vehicles, which they often need to find or keep a job, or run their business. Atlanta bankruptcy attorneys
Clark & Washington want to assure people that whether they file for Chapter 7 or Chapter 13 bankruptcy, there are a number of options that will allow them to keep their vehicles.
Georgia has exemptions for bankruptcy, which protect important physical and liquid assets. If you are filing for bankruptcy in Atlanta, these options determine which property you can keep in a Chapter 7 bankruptcy and how much you repay your creditors in a Chapter 13 bankruptcy.
Chapter 7 Bankruptcy
Of the two most common types of personal bankruptcy, most people choose Chapter 7 because it wipes out credit card debt, medical bills and many loans. With Chapter 7 bankruptcy, a trustee takes over your debts. In exchange, you give up some property to be sold and used to repay your unsecured creditors. However, bankruptcy law protects certain types of property and your Atlanta bankruptcy attorney
can help you keep the assets you need. Many people who file for Chapter 7 are able to exempt most or all of their property.
The Georgia Motor Vehicle Exemptions
In Georgia, you can exempt up to $3,500 in equity for your car or other vehicle. If the equity in your car is less than $3,500, the trustee cannot sell it. If it is significantly more, the trustee will probably sell your car to repay your unsecured creditors.
If your car is valued at more than $3,500, you may still be able to keep it by using a wildcard exemption. This can be used to exempt any type of property or can be added to the motor vehicle exemption. Georgia has a wildcard exemption of $600 plus any unused portion of the homestead exemption up to $5,000. Therefore, if you did not use the homestead exemption or you still have over $5,000 available, you have an additional wildcard exemption to apply to your car. Thus, you can potentially exempt $9,100 of your car's value. Most creditors will not take it unless it was worth enough to significantly pay down your debts.
In Georgia, you can double your bankruptcy exemptions if you are married. Thus, all of the figures discussed above are doubled for couples who jointly file for Chapter 7 bankruptcy.
If you have an outstanding car loan or lease, you must decide whether you want to keep the car, pay it off in a lump sum, or turn over the debt to the trustee.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy allows people to pay off some or all of their debt over a period of three to five years. Generally, the bankruptcy court does not seize any property, so there is no danger of losing a vehicle as long as you keep up payments and successfully pay off all debt. If not, creditors can take it along with other non-exempt assets. That is where the exemptions noted above come in.
Bankruptcy and exemption laws in Georgia change periodically. Clark & Washington recommends that you consult one of their bankruptcy lawyers in Atlanta
to determine which type of bankruptcy is preferable for you. To find out more about the firm's bankruptcy expertise or make an appointment, visit http://www.cw13.com
.About Clark & Washington:
Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal Chapter 7 and Chapter 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.
For more information, visit http://www.cw13.com