When you file for bankruptcy, there are certain people that will be key in your ability to file your Chapter 7 bankruptcy in Georgia. Getting to know these parties as well as what role they play in your bankruptcy case will help you to be able to understand what is going on when it is happening. While your bankruptcy attorney will be fully aware of who these parties are, it will help to keep you in the loop and make sure that you know what is going on. This way you can be more informed and make better decisions.
The Case Trustee
Every Chapter 7 bankruptcy in Georgia will be appointed a case trustee who will look over the information which has been filed in the office. They will determine whether assets can be liquidized and if so, how much money will the creditors be able to get if they are able to sell it. They will then advise the court about the official position regarding your assets and what should happen with your case. They are designed to be an impartial third party who will provide an opinion based on the facts about the case. This is done to remove the judges from the initial process.
The Creditors
When you file a Chapter 7 bankruptcy in Georgia, your creditors will have a specific amount of time to file their claim on your property through the courts. This will allow the court to act as an intermediary regarding what will actually happen to your assets. The court will allow you creditors 90 days to file a claim on your assets and government agencies will have 180 days to file claims on your assets. If additional assets are required to meet the needs of your bankruptcy case, the trustee will inform you of this necessity and will then inform the creditors so that they can make their claims against it.
When your assets exceed the amount that is owed in secured debt, funds will then go to any unsecured debt you still have. There is no need for a secured debt holder to file a claim on property, but there are reasons by which they may feel compelled to do so. When you file for Chapter 7 bankruptcy in Georgia, you will have the opportunity to claim any exemptions for property, but all property which has been determined to be non-exempt will be subject to being liquidized by the court.
The Estate
When you file for Chapter 7 bankruptcy in Georgia, your assets will become the temporary property of the estate. This creates the pool of finance from which all of your unsecured creditors will be paid from. This will consist of all property which the trustee indicated will be non-exempt. Depending on the class of the claim will depend on who will get paid first when the estate is distributed. There are six classes of claims. Each class will be paid off before the next one will receive anything. If any money remains, it will be paid to the debtor.
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- Exempt vs. Non-Exempt Property in Chapter 7 Bankruptcy in Georgia
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- Remaining Debts After Chapter 13 Bankruptcy in Georgia
- Chapter 7 Bankruptcy in Georgia Debt Discharge
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