Order of Relief and Bank Accounts

Columbus GA Bankruptcy Lawyers

Bankruptcy code uses many legal jargons which common man finds difficult to understand. People faced with financial trouble consult a good bankruptcy attorney and under their guidance and advice file for bankruptcy.

When a bankruptcy case is filed voluntarily, without any court appearance or any other court proceedings, an order of relief is granted.

Order of Relief

The order of relief deems that the person who filed for bankruptcy is a debtor in bankruptcy. The automatic stay would be applicable and implemented from now on. Thus creditors cannot make calls or contact debtor for recovery process. They can be charged for harassment if they continue to do so. Creditors cannot garnish wages, foreclosures are stopped, and a date is established for scrutiny and verification of assets and debts by court. If a creditor or lender manages to get a relief from automatic stay, he can claim his assets like cars, houses etc.

Order of relief is a very vital step in a bankruptcy process. This is the order for which bankruptcy is field for. This is the most important decision next to be being granted a bankruptcy discharge.

Cash and Bank Accounts in Bankruptcy

Checking, savings and CDs are properties that belong to bankruptcy estate. It is vital that you provide all information regarding your bank accounts to your bankruptcy attorney. The information should include exact bank balances, date of filing for bankruptcy for all bank accounts etc. this information can be obtained by contacting your bank. This is vital since it is a key factor in allowing you to be able to retain property that is rightfully yours.

The balance in your bank account is the amount present after clearance of checks signed prior to filing of bankruptcy. The actual balance has to be mentioned in the bankruptcy schedules. There are instances where bank balance loses its importance. Nevertheless, it is better to have a low bank balance. This can be achieved by paying off dues as much as possible using funds from your account once you decide to file for bankruptcy. The balance amount on the date of filing of bankruptcy is accountable.

Pay off your utility bills, car payments and other normal monthly bills. Some part of your property does not go under the hammer and hence can be retained. These are called as exempt property and are under the jurisdiction of the state. If your bank balance is higher, your exemptions can be reduced and you might have to forfeit exemptions on tax refunds and vehicles. In order to avoid this consult with your bankruptcy attorney as to payments that can be made prior to filing in order to keep a low bank balance.  

If you are searching for Columbus GA bankruptcy attorney or interested in Chapter 7 or Chapter 13 even need a Bankruptcy lawyer, then we can help.

Our bankruptcy law firm is based in Columbus, GA. Our bankruptcy lawyers handle debt relief cases in and around Columbus, Fort Benning, Chattahoochee County, Harris County, Marion County and Muscogee County.