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Bankruptcy as an Option

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In times of current economic hardship, many of us have hit the wall and we feel as though we are out of options. No matter how hard we work and how hard we push ourselves to strive and succeed, things beyond our control throw us into an economic downward spiral. Unexpected loss of employment, illness, or business failure may have you considering Bankruptcy. If you feel you have gotten in over your head, filing a Chapter 7 Bankruptcy may be a great option.

If you are a debtor faced with financial trouble and you are not able to pay off debt you have incurred, you should consider filing a Chapter 7. Contrary to popular belief, you do not lose everything you have acquired. Under Chapter 7, the debtor may claim exemptions. By proper use of the exemptions most people can keep all of their paid off personal property. Although it is not the typical situation, if you do have a lots of valuable personal property the trustee can sell the excess property and apply the proceeds to your debt. The good news is that even in the extreme situations, you have some control over what assets are liquated.

Georgia's Exemption Statute, O.C.G.A. §44-13-100, provides for the following interests to be exempt. You may exempt $10,000.00 to $20,000.00 interest in real property, $3,500.00 in motor vehicles, $5,000.00 in household furnishings, household goods, wearing apparel, appliances, books, animals and other items that are held primarily for the person, family or household use or a dependent of the debtor. In addition, you may exempt $500.00 in jewelry, $1,500.00 in "tools of the trade", unmatured life insurance, and other items. In most cases there is also a "wildcard" exemption of $5,000.00 that you may claim against other non-exempt property.

Although the actual decision to file bankruptcy may be difficult, most people agree that once the decision is made, the feeling or relief is immeasurable. Moreover, once your case is in the hands of a qualified attorney the process of actually filing for Bankruptcy is relatively easy. If you find your debt rising faster than you can keep up, do not prolong the decision. The law allows you to get a fresh start. www.Legalcreation.com

Kevin Pratt is Attorney in Law in Georgia and focuses his practice in business law, corporations and limited liability companies, real estate transactions, tax deferred like-kind property exchanges, secured lending, and real estate litigation. Kevin Pratt has assisted hundreds of entrepreneurs in the creation of business entities such as Corporations, Limited Liability Companies, or Partnerships to facilitate their particular needs regarding, taxation, financing and limited personal liability. For more information please visit www.LegalCreation.com

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