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Living with debt can be exasperating. When interest accelerates after default, debt can spiral out of control. Bankruptcy can provide relief from suffocating financial obligations. Maybe you’ve lost your job, had your hours reduced, endured marriage problems, suffered from illness or injury, had a business failure, or simply find yourself with credit card balances that climb higher every month, despite your best efforts to pay them.

The effects of bankruptcy are dramatic. Debtors are relieved of all or part of the obligation to pay most types of debts. Creditors can no longer harass you, bring lawsuits, or contact you in any way. Car payments are reduced, foreclosure stops, and wage garnishments cease immediately.

Contact an Atlanta Bankruptcy Attorney at CMC Law today.

Atlanta Bankruptcy Attorneys

If you are facing foreclosure, garnishment, a lawsuit or judgment, tax levy, in the Atlanta area, bankruptcy is a viable option for you. Bankruptcy is a legal vehicle that is governed by the court systems and gives you time to resolve your financial problems under the protection of the law.

What Can Filing Bankruptcy Do to Help You?

  1. Bankruptcy stops all creditor actions immediately.When you file bankruptcy, it triggers the issuance of a bankruptcy “stay,” which is a court order that prevents creditors from taking actions against the debtor and any of the debtor’s property. All creditors are immediately prohibited from:
  • calling you;
  • suing you
  • foreclosing on your home;
  • garnishing your wages;
  • repossessing your car; and,
  • getting a judgment against you.

Thus, if you are facing foreclosure, garnishment, or repossession, bankruptcy gives you some breathing room to come up with a plan to straighten out your finances.

  1. Bankruptcy allows you to keep your home and car.Bankruptcy gives you options for catching up on delinquent home and car payments or gives you time to decide if you do not want to keep the property. A Chapter 13 bankruptcy case allows you to submit a plan to the court to repay your mortgage or car arrears in lower monthly payments until you catch up. Even if you file a Chapter 7, you may be able to work with your mortgage company directly to modify your loan and keep your home.
  2. Bankruptcy wipes out debt that you cannot repay.At the end of a successful bankruptcy case, the court issues an order that states your debts (subject to exceptions) are discharged or wiped out. You do not have to repay those debts after you receive the discharge order, and creditors are prohibited by law from collecting on those debts. Dischargeable debts include almost everything, with the exception of taxes and student loans; sometimes, even taxes can be wiped out in bankruptcy, depending on the situation.
  3. Bankruptcy lowers principal balances and interest rates.Under some circumstances, bankruptcy allows you to repay secured creditors the fair market value of the property that secured the loan. For example, if you purchased a car more than 910 days before your bankruptcy case, you can file a Chapter 13 plan to repay the fair market value of the car, even if the balance of the loan is higher. You can also lower the interest rate under the same scenario.

5.Bankruptcy can get rid of liens. Bankruptcy may allow you to wipe out second mortgage liens where there are two mortgages and the house is worth so little that if it were sold, the second mortgage company would not be paid out of the sale proceeds. In Georgia, you can wipe out second mortgage liens in both Chapter 7 and Chapter 13 cases. Bankruptcy also allows you to avoid judgment liens, which are liens that are filed as a result of a creditor’s judgment against you.

Types of Bankruptcy

There are generally two types of bankruptcy available to consumers, a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. Chapter 7 is commonly referred to as a “straight bankruptcy” because it is a liquidation bankruptcy that does not require any type of consolidation of your debts. Chapter 13 is a bankruptcy that allows you to restructure and consolidate your debts into a monthly payment that is based on your disposable income. Creditors are prohibited from collecting against you in either type of bankruptcy. Further, you can keep your house and your car in either type of bankruptcy. Our Atlanta bankruptcy attorneys can help you determine which type of bankruptcy is the best type of bankruptcy for you based on your individual financial circumstances. Please call Law Offices of Charles Clapp at (404) 585-0040 or contact us on the web for a free consultation with an attorney in Atlanta, Georgia.

Legal disclaimer: 
The materials on this web site have been prepared by Law Offices of Charles Clapp for informational purposes only and are not legal advice. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Internet subscribers and online readers should not act upon this information without seeking professional counsel. Do not send us information until you speak with one of our lawyers and get authorization to send that information to us.


Charles is absolutely a brilliant attorney! He is a critical thinker and determined problem solver. He is very accessible, even via text. If he is in court, his ability to multi-task, you can feel safe and secure in knowing he is handling any issues or concerns. I entrust him with my future, he is a uniquely talented attorney who always challenges himself to achieve the absolute best outcome for his clients.



I was very satisfied with Mr. Clapp services. He is a man of his word and did everything he told me he would. I would highly recommend him.



I came to Mr. Clapp by referral with a complicated case involving both personal and business debts that were out of control. Mr. Clapp evaluated the situation and gave me options that I was not even aware of. He knows his stuff, executed flawlessly, and I have been able to start over. I highly recommend Charles Clapp if you have debt or bankruptcy issues. Listen to his advice, he knows his stuff. I consulted with several other bankruptcy attorneys prior to retaining Mr. Clapp, and they did not have the same breadth of knowledge that Mr. Clapp brought to my case.



I selected Charles Clapp to handle my bankruptcy based on his already positive reviews and I am glad that I did! He was very accommodating to my schedule and made my negative life experience positive. I was actually very surprised how easy he made the process. Life happens and it’s great to be represented by someone that understand that!!! Stop your attorney search with Charles Clapp!!!