Augusta, GA · Chapter 7 Bankruptcy
Chapter 7 bankruptcy: erase qualifying debt and start fresh.
When you are drowning in debt, Chapter 7 can wipe the slate clean. It is a complete liquidation that discharges qualifying debt so you can get on with your life. It is a serious decision, and with years of experience, the attorneys at Claeys, McElroy-Magruder & Kitchens guide our clients through every step of it.
First, the big question
Chapter 7 or Chapter 13?
You have two main options when you file for relief from the court. The right one depends on your income and assets, and we help you choose after reviewing the means test.
Chapter 7 Bankruptcy
For filers who cannot repay even a portion of their debts, Chapter 7 discharges qualifying debt and gives you a clean reset, usually within a few months.
Chapter 13 Bankruptcy
For filers with assets or disposable income, Chapter 13 is a reorganization plan that lets you repay a portion of your debts in small payments over three to five years.
What actually happens
Your Chapter 7, step by step.
The process can feel overwhelming from the outside. From the inside, with us beside you, it is four clear stages.
The means test
We review the means test, which looks at all your incoming and outgoing finances to see whether you have disposable income. The test is generous and allows for everyday expenses like church tithes and clothing. It tells us which chapter is best for you. Read more on the Georgia means test.
We file, and the automatic stay begins
Once it is clear you cannot repay your debts, we file a voluntary petition. From the minute the paperwork is filed, the automatic stay begins and all collection activity against you must stop. If your home is in foreclosure or your vehicle is facing repossession, that activity pauses while your case is active.
The 341 meeting of creditors
This mandatory session is led by a court trustee in an informal, conference-style room. The trustee asks questions about your finances to confirm nothing was left out. One of our attorneys is by your side the entire time to help you through it.
Your discharge, and your fresh start
Most people receive their discharge about 90 days after the 341 meeting, once the window for creditor objections has passed. Your qualifying debts are erased, and you get the clean slate you came for.
The day we file, the calls stop.
The automatic stay is the fastest relief in Chapter 7. It legally halts collection calls, lawsuits, garnishment, foreclosure and repossession for the length of your case. A creditor can ask the court to lift the stay, for example on a vehicle that is several months behind, but we can counter that motion and buy you time to catch up or reaffirm. The sooner you file, the sooner the pressure lifts.
Know before you file
What Chapter 7 can and cannot erase.
Chapter 7 is a complete liquidation, but a few categories of debt survive it. Here is the honest breakdown.
Often wiped out
- Many unsecured debts, such as credit cards
- Medical bills and similar consumer debt
- Many personal loans and collection accounts
Generally not discharged
- Student loans
- Taxes owed to the IRS or the state
- Fines and court costs
- Debts obtained by fraud, or created less than 90 days before filing
If a creditor objects to a large purchase, like an expensive item bought on a store credit card, we can often settle for the item's fair market value. That is exactly why a knowledgeable attorney matters.
The question everyone asks
Will I lose my house and my car?
Usually less than people fear. Georgia lets you keep a set dollar amount of exemptions, and the amount is different if you are married rather than single. Each case is unique, so we review yours carefully.
You keep a protected amount
The court allows you to keep a specific dollar amount of property. The exemptions can be confusing and differ by household, which is where we come in.
Keep your car and home
It is possible to keep your vehicle and home if you can continue the payments and are current on the loan. If you are past due, we help you work with the creditor, who will sometimes modify the loan.
Choose to keep a secured debt
A reaffirmation means you want to keep an asset and continue paying on it. We tell you honestly whether reaffirming makes sense for your situation.
Worth knowing: if you reaffirm a debt and later default on it, you lose the court's protection on that debt. The creditor can then pursue wage garnishment and other collection. We will walk you through this carefully before you sign anything.
The calls can stop this week
The day we file, the collection calls have to stop.
That is the automatic stay, and it is the law. But it does not start until the petition is filed, and a foreclosure or repossession date will not wait for you to feel ready. Here is what your free consultation gives you.
- A means-test review to confirm whether Chapter 7 is right for you.
- A clear plan to protect your home, your car and your wages.
- An attorney by your side at the 341 meeting, start to finish.
- A paperwork process done correctly, so your case is not thrown out.
The part worth acting on: the court allows pro se filers, but the petition and all of its schedules are a long, exacting process. One missed form can get your case dismissed. The sooner you call, the sooner the stay can begin and the more we can protect.
The consultation is free and confidential. The only thing it costs is the time it takes to tell us your story.
P.S. We even bring a mobile office to you. Never file bankruptcy alone. Let Angie help.
Decide with a clear head
Worth weighing, and worth comparing.
We believe in straight talk. Chapter 7 is powerful, and it is worth understanding the trade-offs and your other options before you file.
- A Chapter 7 can stay on your credit report for up to ten years.
- You can file Chapter 7 only once every eight years. You can file Chapter 13 sooner if you need help again.
- You cannot apply for new credit or loans during the bankruptcy process.
- Some debts, like student loans and taxes, cannot be erased.
Chapter 13 Bankruptcy
Have assets or steady income you want to protect? A Chapter 13 reorganization repays debt over three to five years and can stop foreclosure.
Subchapter 5 Bankruptcy
A streamlined reorganization path built for small businesses that need to restructure and keep operating.
Straight answers
Chapter 7 questions, answered.
Talk to us
Call one of our three Georgia offices.
Augusta, GA 30901
Dublin, GA 31021
Statesboro, GA 30458
We also bring a mobile office to serve you, and we are available evenings and weekends by appointment. After hours or need a quick reply? Send us a text for the fastest response.
We are here to help
A good way to erase your debts and start fresh.
Tell us about your situation and we will make sure your case is done correctly so you get in and out of the courts in a timely manner. Once you are discharged, you have a clean slate. We will help you protect it.
Need us after hours, or want the quickest reply? Send us a text. For office matters, please use the local numbers below.
Augusta
512 Telfair Street
Augusta, GA 30901
Phone: 706-724-6000
Fax: 706-724-3363
Dublin
1205 Bellevue Place, Suite A
Dublin, GA 31021
Phone: 478-275-8311
Fax: 478-275-8399
Statesboro
200 South Main Street
Statesboro, GA 30458
Phone: 912-764-7000
Fax: 912-489-7196
Office Hours
Monday – Thursday: 9:00 AM – 5:00 PM
Friday: 9:00 AM – 2:00 PM
Evenings & weekends by appointment.
Quickest reply, after hours or emergencies: send us a text.
To set up your consultation, use our contact page.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. We serve clients throughout Augusta, Dublin, Statesboro and the surrounding CSRA. The information on this page is general and is not legal advice, and contacting the firm does not create an attorney-client relationship.