Before the pandemic, bankruptcy court hearings were conducted in person at the federal
\ncourthouse. You had to deal with parking, child care, etc., and all of us had a long wait in court
\nfor other hearings to be finished. All of this meant missing work or missing some other
\nproductive activity. For first-timers, it could also be very stressful.<\/p>\n
When the pandemic hit, we went to telephonic hearings to keep people from getting sick.
\nIt was so convenient and successful that no one really wanted to go back to the old ways, and we
\nhaven\u2019t. All you do now on assigned hearings is call an 800 number from anywhere (home, work,
\netc.), enter the given \u201caccess code\u201d, and you are in a brief \u201cmeeting\u201d (court hearing). Your lawyer
\nparticipates in the meeting on the telephone from his office. This is true for all kinds of hearings
\ntoday. It is convenient and much less stressful than before.<\/p>\n
Very little that was any good came out of the Covid 19 pandemic. However, for a number
\nof months, there were moratoriums on court hearings and foreclosures in state court, so that those
\ndebt collection proceedings almost came to a complete halt. However, if something seems too
\ngood to be true, it probably is. The moratorium on debt collection was just temporary. Debt
\ncollection proceedings have started up again, and are gaining momentum. Government stimulus
\nprograms have lost steam, and so have state programs having to do with mortgage and rent
\nassistance.<\/p>\n
Even so, there is still very real help if you are overwhelmed with debt. Under federal
\nbankruptcy law, Chapter 13 is a debt consolidation repayment plan that lasts up to five years. It
\nstops foreclosures, repossessions, lawsuits, and garnishments instantaneously. It is used to force
\nsecured creditors to allow the debtor to cure defaults overtime under the protection of the federal
\ncourt. In many cases, unsecured debt is paid less than in full, making payments much cheaper.
\nChapter 13 does not put property at risk of being sold by a trustee.<\/p>\n
Chapter 7 also stops debt collection activity, and there is no repayment of debt through
\nthe court system. In most Chapter 7’s, debtors keep and continue to pay for cars and real estate
\non their own (provided there is not large equity in any property, and that must be checked before
\ndeciding to file). Your budget should show that you do not have the resources to pay the debt
\nthat you are asking the court to \u201cdischarge\u201d (wipe out without payment).<\/p>\n
A Chapter 7 will not force secured creditors to allow a debtor to catch up on defaults.
\nTherefore, you will want to be up to date with your payments, or close to it, on secured debt that
\nyou want to \u201creaffirm\u201d (keep the property and continue to pay). In Chapter 7, general unsecured
\ndebt is wiped out without payment.<\/p>\n
Before filing any case, we still prefer to meet clients in person because the exchange of
\ninformation tends to be much better in a face-to-face setting. We don\u2019t charge for anything unless
\na case is actually filed. If a case is filed, we bend over backwards to make fees affordable.
\nPlease call us at 770-683-3303 or leave a message on our website to give us an overview
\nof your situation. We have many years of experience, and we want to help with your questions.
\nWe\u2019ll communicate with you and set up an in-person appointment if that is appropriate. We try
\nour best always to have a live person answer the phone. Please feel free to contact us.<\/p>\n
H. Brooks Cotten
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