FAQs

Bankruptcy FAQs

Answers from an Experienced Law Firm in Atlanta

If you have questions about bankruptcy, you have come to the right place. With years of experience helping innumerable clients successfully navigate the bankruptcy process, our Atlanta legal team can provide answers for any questions you have about this type of debt relief.


Please review our bankruptcy FAQs below. If you have further questions, please do not hesitate to call Holston & Huntley at (404) 620-3337. During a free consultation, we can provide personalized guidance regarding your unique financial circumstances.


What Is the Difference between Chapter 7 & Chapter 13 Bankruptcy?

Chapter 7 bankruptcy involves liquidating your assets (turning property into cash) to repay your creditors. When the funds have been depleted, all remaining debts are discharged (eliminated).

Chapter 13, on the other hand, is a reorganization of debt into a payment plan managed by a trustee. For a period ranging from 3-5 years, you will make monthly payments to the trustee, and they will disperse the money to the appropriate lenders. Once your repayment plan is complete, your remaining debt can be discharged.

Why Should I File for Bankruptcy?

Bankruptcy provides many benefits. Most importantly, the bankruptcy court can discharge (eliminate) qualifying debt, thereby releasing you from liability. The discharge can occur either after the liquidation process under Chapter 7 or after the 3-5-year repayment plan under Chapter 13.

Additionally, bankruptcy triggers an automatic stay, which stops your creditors from continuing their collection efforts. They will not be able to garnish your wages, repossess your vehicle, foreclose your house, or deduct money from your bank account. They won’t even be permitted to contact you.

What Property Can You Keep in Chapter 7 Bankruptcy Relief?

Under Georgia law, some property and income are exempt from Chapter 7 liquidation.

Those exemptions include:

  • Homestead (up to $21,500 in value)
  • Income from child support or alimony
  • Workers’ compensation
  • Veterans’ benefits
  • IRAs and ERISA-qualified benefits
  • Insurance proceeds
  • Motor vehicles (up to $3,500 in value)
  • Aid to disabled persons
  • Tools necessary for a particular trade
  • Up to $600 of property chosen by the individual

Will Filing for Bankruptcy Ruin My life?

This is a pervasive and harmful myth. In truth, bankruptcy can rescue you from financial ruin. By allowing you to get many of your debts discharged, bankruptcy really does give you a second chance.

What Are the Consequences of Bankruptcy?

Our attorneys would be the first to tell you that bankruptcy is not right for everyone. Although filing for bankruptcy can help you get a fresh start, it can have a severe impact on your credit.

More specifically, bankruptcy will remain on your credit report for 7-10 years (depending on the chapter you file). This may affect your ability to open credit card accounts and obtain loans with reasonable interest rates. But, because several debts are discharged during bankruptcy, many filers immediately begin improving their credit after the bankruptcy process.

The most severe consequences people experience, however, are the result of filing without an attorney. Without qualified, professional support, you might file a chapter that isn’t right for your situation. You might lose more assets than necessary because you don’t take full advantage of exemption laws. You could file your petition with mistakes or inconsistencies that could lead to a petition denial. To minimize the negative consequences of bankruptcy, you must file with an experienced legal team by your side.

Is Bankruptcy Right for Me?

Ultimately, your top concern is if bankruptcy is the right decision for you and your family. Our Atlanta bankruptcy attorneys are here to evaluate your unique situation and help you make an informed decision about how to get relief from your debt.

Contact Holston & Huntley online or call (404) 620-3337 today to schedule a free consultation. We offer flexible payment plans for all our bankruptcy clients.

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How We Can Help

Bankruptcy isn’t the only service we offer at Holston & Huntley. Our attorneys have years of experience filing personal injury claims for individuals in Atlanta and surrounding areas. We have an in-depth understanding of Georgia personal injury law, which allows us to secure maximum compensation after events like car accidents, dog bites, or even the loss of a loved one. When you are suffering on a physical, financial, and emotional level, you can trust our empathetic team to take care of you and your case.

Top 10 Mistakes Drivers Make After an Accident

Are you looking for advice as to what you should do in the event of an accident? Contact us today to receive a free guide and checklist from Holston & Huntley LLC to always be prepared.

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Start Your Path Towards Relief

Our experienced attorneys have the experience necessary to handle your bankruptcy and personal injury matter with the care it deserves. Schedule a free consultation with one of our skilled attorneys today.