Augusta Bankruptcy FAQs

People file for bankruptcy for different reasons. There are three common situations in which people may benefit from filing for bankruptcy:

• A creditor has taken action to collect a debt that threatens the individual's livelihood. Some examples include garnishment of your wages or bank account, repossession of your vehicle, foreclosure of your home or creditor harassment.
• A traumatic event has happened that has reduced the person's income or increased the person's debts and bankruptcy is often the best option to pick up the financial pieces. Some examples include divorce, long-term employment, serious medical issues, or death of a family member.
• The person has become overwhelmed with debt and has no reasonable prospect of improving his or her credit and debt situation other the filing a bankruptcy.

Before filing any bankruptcy case, the very first step is to meet with our Augusta bankruptcy lawyers at Seymour and Associates at a free consultation. We proudly offer decades of experience, and we take the time to get to know you and your family and help you to understand what your options are.

Make sure that you bring to your consultation the following items:

• Driver's License and Social Security Card
• FEDERAL AND STATE TAX RETURNS (If required to file, please bring your most recent returns)
• Pay stubs/pay history from the last 6 months
• Proof of any other household income received
• All of the following, if applicable: credit reports, garnishments, foreclosures, repossessions, lawsuits

Following your consultation, we will set up a follow-up appointment for the documents to be signed. The primary thing that you will need to do before the case can be filed is credit counseling. You must go through an approved credit counseling agency, and it must take place within the 180 days before the case is filed. Depending on the agency you choose, you may have access to in-person counseling, over the phone, or online. We cannot file the case on the same day as the certificate was received, so please be sure to give yourself enough time to complete the necessary counseling. You are welcome to use any approved agency, but we recommend going through Debtorwise or DebtorCC.

Student loan deferments can be useful in some situations; however, we do not recommend that a person use them to delay payments. If you are trying to keep your student loans in deferment because you cannot afford the payment, you are missing a golden opportunity to start the forgiveness clock on your loans. As long as your loans are in deferment or forbearance, time has stopped for you and you are not moving toward the forgiveness of your student loan debt. Also, deferments and forbearances are doing nothing but increasing your student loan balances.

If you cannot afford your payment, our office can help you. We can help you set up a repayment plan, often with a very, very low payment. This will start your forgiveness clock so you can relax knowing this debt is being paid.

Discharge in bankruptcy is a good thing. To have your debts discharged means the bankruptcy case has concluded and the debts are cleared from the debtor's obligations. The debtor no longer has a responsibility to pay those debts.

• Related Topic: Income Taxes Can be Discharged in Bankruptcy

The creditors' meeting is usually a brief meeting in which the Trustee and the creditors have a chance to ask you questions about your assets and the ability to pay your debts.

An automatic stay will temporarily put an end to creditor harassment in most cases. They are not permitted to call you, send letters, garnish wages, or threaten lawsuits. These go into effect automatically after filing for Chapter 7 or Chapter 13 bankruptcy – however, creditors may not know about it right away.

If you don't pay your debts, then your debt collectors are probably harassing you with a bunch of scary threats. Our Augusta, Georgia bankruptcy clients know these harassing calls can be stopped. There has been no debtor's prison in the United States since the 1800s. Therefore, the short answer is that you will not go to jail if you do not pay your debts. In fact, it is a violation of the Fair Debt Collection Practices Act (FDCPA) for a collector to threaten you with an arrest for failure to pay a debt. In certain situations, if you have written a bad check, owe back child support, or have unpaid fines, you could spend some time in jail. However, generally, these are not the types of debts that collectors call about.

If you have questions about how to stop the harassing phone calls, schedule an appointment for a FREE consultation at Seymour & Associates by calling (706) 872-7117.

All individuals have the right to represent themselves in a court. However, bankruptcy is a complicated area of law. There are numerous considerations – is filing for bankruptcy the best option for your situation? What chapter should you file under? What exemptions can you claim? Having a thorough knowledge of bankruptcy law can save you incalculable time and money.

Sadly, no. Not all debts are dischargeable. There are particular types of debt that bankruptcy will not wipe away. Tax debts, child support, and student loans are examples of debts which cannot be discharged. However, just because it cannot be discharged does not mean that bankruptcy can’t help you. Indeed, a Chapter 13 bankruptcy can help you to repay those debts at an affordable rate.