Straight Bankruptcy or Liquidation

Chapter 7 is the quickest, easiest way to get out of debt. Like all chapters of bankruptcy, however, it has pros and cons that you should discuss with a lawyer before you decide to file.

Chapter 7 Eliminates Most Debts

Under Chapter 7, unsecured debts such as medical bills, personal loans and credit cards will be discharged. This means you do not have to repay them.

Secured debts may be discharged if you return the collateral to the creditor. For example, if you can no longer pay your auto loan and do not plan to keep your car, you can return it to the creditor and your loan will be wiped out. You can also choose to keep your car and continue making direct payments to the creditor.

Chapter 7 provides the automatic stay, which prevents creditors from harassing you and taking collection actions against you. This means that while the bankruptcy is in progress, no creditor or collection agency can contact you, foreclose on your home or repossess any property.

We will put your finances through the Chapter 7 means test to determine whether you qualify. If you do not, you may be able to file Chapter 13 bankruptcy instead. 
Chapter 7 — Filing of Bankruptcy Form in Valdosta, GA
Chapter 7 Bankruptcy — Pay off Debt Word in Paper in Valdosta, GA

Reasons for Filing Bankruptcy Chapter 7

 

  • To Get Out of the Credit Card Trap

 

A Debtor is caught in the credit card trap when the number of minimum payments due for all of the credit card debts uses all of the Debtor’s income to the point that the Debtor cannot reduce the debt or cannot make all of the minimum payments. In Bankruptcy, the Debtor can reduce or eliminate these debts to allow the Debtor to use its income to provide the necessities of life such as food, clothing, shelter, medical care, transportation, insurance and utilities.

  • To Obtain Relief from Burdensome Debts
Burdensome debts are those that are excessively high or excessively numerous. The most common burdensome debts are those arising out of deficiencies for repossessed property, those arising from major medical procedures, and those arising from loss of employment. In Bankruptcy, the Debtor can reduce or eliminate the debts.

Do I Qualify for Chapter 7 in Georgia?

Qualifying depends on passing the means test, which compares your household income to the Georgia median for your family size. If your income falls below that threshold, you may be eligible. If it is above, a second calculation weighs your allowable expenses to determine eligibility. Hall & Mullis, PC reviews your full financial picture during a free consultation. Residents across South Georgia can meet in person, by phone, or virtually.

What Happens to My Assets Under Georgia Bankruptcy Law?

Filing Chapter 7 does not automatically mean losing your property. Georgia exemptions may protect equity in your home, your vehicle, household goods, clothing, retirement accounts, and jewelry up to certain limits. A skilled Chapter 7 bankruptcy attorney can help you claim every available exemption. The firm serves clients throughout the Middle District of Georgia, including Valdosta, Albany, Moultrie, Tifton, Thomasville, and Bainbridge communities.

Chapter 7 Bankruptcy — Pay off Debt Word in Paper in Valdosta, GA

Get a Free Chapter 7 Consultation Today


Debt does not have to define your future. Hall & Mullis, PC offers free consultations, no money down, same-day appointments, and flexible payment plans for clients throughout Southwest Georgia. Call 229-245-8817 or visit the contact page to take the first step toward a fresh financial start.


Chapter 7 Bankruptcy — Pay off Debt Word in Paper in Valdosta, GA

How Chapter 7 May Help Stop Wage Garnishment

Filing Chapter 7 triggers an automatic stay that stops garnishments immediately. Once it is in place, creditors may no longer contact you, file lawsuits, garnish wages, or repossess property while your case is active. For Albany-area residents facing garnishments tied to medical debt or credit card judgments, this relief can arrive quickly.



How the Chapter 7 Process Works


  1.  Schedule a free consultation by phone, email, or in person to review your debts and assets.
  2. Complete the required credit counseling course within 180 days before filing.
  3. Sign your petition and schedules, which your attorney reviews with you for accuracy.
  4. Your case is filed with the U.S. Bankruptcy Court and the automatic stay takes effect immediately.
  5. Attend the short creditors' meeting with your attorney, then await your discharge.


Learn more on the firm's how to begin page.