Filing Bankruptcy in Augusta, GA, Can Improve Your Financial Situation

Filing Bankruptcy in Augusta, GA, Can Improve Your Financial Situation

Many people believe that filing bankruptcy in Augusta, GA, will cause them to lose ownership of all their possessions. This is a common misconception and one that should be dispelled. The fact of the matter is that filing for bankruptcy can sometimes improve debtors' financial situations without causing them to lose any of their assets.

First of all, there are two common ways to file for bankruptcy – under Chapter 7 of the U.S. Bankruptcy Code and under Chapter 13 of the U.S. Bankruptcy Code. Only those that file under Chapter 7 stand a chance of surrendering any of their assets.

Many times, even those that utilize Chapter 7 can complete their bankruptcy without losing any assets. This is because the Bankruptcy Code considers many assets exempt from forfeiture. If you utilize Chapter 7 you are permitted to keep quite a few of your assets. For instance, you will be permitted to retain one home, one automobile, and personal affects such as furniture and clothing. You may be required to forfeit assets that are not exempt; but, the truth is that most people who utilize Chapter 7 own mostly assets that are exempt from forfeiture.

It is even possible to retain assets that are not exempt from forfeiture by signing what is called a reaffirmation agreement. For instance, by signing this agreement for a second car you can essentially keep the second car outside of the bankruptcy proceeding. This will allow you to continue making payments on the car and prevent its repossession or forfeiture.

You should never make assumptions about which assets you will lose in a bankruptcy proceeding. A qualified bankruptcy attorney should be on your side to help you determine the truth about your financial situation. Your attorney will help you determine whether filing for bankruptcy in Augusta, GA, is a good decision.

Article Source: http://www.articlesbase.com/bankruptcy-articles/filing-bankruptcy-in-augusta-ga-can-improve-your-financial-situation-1175758.html

To find out more about filing bankruptcy in Augusta ga, take a moment and visit us at www.augustabankruptcy.com