Rountree Leitman & Klein, LLC's Legal Blog

Bankruptcy and Divorce: A Guide for Family Lawyers and Consumers

11/10/2025

Will B. Geer
Partner
E-mail Will

Bankruptcy and Family Law: What Every Family Lawyer and Consumer Should Know

Bankruptcy can have a profound impact on family law proceedings. It’s crucial for family law practitioners—and consumers—to understand what bankruptcy can and cannot do for their clients. This guide serves as a quick reference for family lawyers and an introduction for individuals navigating both divorce and financial hardship.

Overview of Bankruptcy Chapters

Chapter 7: Liquidation and the “Fresh Start”

Chapter 7 bankruptcy is often called “straight” bankruptcy. Many fear losing everything, but Georgia law protects essential property through exemptions. Under O.C.G.A. §44-13-100, individuals may protect up to $21,500 in home equity ($43,000 if married), $5,000 in a vehicle, and $5,000 in household goods. Most cases are no-asset cases, meaning the trustee sells nothing and the debtor keeps all property.

Chapter 13: The Wage-Earner’s Plan

Chapter 13 allows repayment of some or all debts over three to five years. It’s ideal if you need to (i) catch up on missed mortgage or car payments, (ii) keep assets that might be sold in Chapter 7, or (iii) address debts like recent taxes—or discharge property settlements owed to an ex-spouse.

Chapter 11: Reorganization for Businesses and High-Income Individuals

Chapter 11 is typically used for business restructuring but can also help individuals with significant assets or income. It is more flexible than Chapter 13, though more complex. Note: property settlements are dischargeable only in Chapter 13.

The Bankruptcy Discharge

The bankruptcy discharge eliminates most pre-filing debts. However, child support and alimony are never dischargeable. Property settlements may be dischargeable in Chapter 13. If only one spouse files, the other remains liable for joint debts.

Common non-dischargeable debts include: fraud, fiduciary breaches, recent taxes, payroll and sales taxes, DUI judgments, and domestic support obligations (DSOs). Dishonesty—like hiding assets—can result in denial of discharge.

The Automatic Stay

The automatic stay under 11 U.S.C. § 362 halts most collection immediately upon filing. Exceptions allow family-related actions, such as determining paternity, custody, or domestic violence cases. Collection of DSOs from post-petition income in Chapter 7 or from retirement funds may continue—always coordinate with the trustee first.

Domestic Support Obligations (DSOs)

A Domestic Support Obligation (DSO) is any debt owed to a spouse, former spouse, or child that serves as alimony, maintenance, or support. DSOs are never dischargeable under any bankruptcy chapter.

“In the Nature of Support” — How Courts Decide

Courts look beyond labels to determine intent. If an obligation enables a spouse or child to maintain a standard of living, it’s likely support. Factors include income disparity, intent of the parties or judge, adequacy of support, and how payments are structured. Even mortgage or tuition payments may qualify as support if intended to sustain the family.

Attorney’s Fees

Attorney’s fees owed to a former spouse are usually considered support—and thus non-dischargeable. However, if awarded under a non-family statute (like a contempt proceeding), they may not be treated as DSOs.

Priority and Preference Rules

Domestic support obligations receive first priority under 11 U.S.C. § 507. Pre-filing DSO payments are not “preferences” and cannot be reclaimed by the trustee. This ensures support obligations are protected.

Protecting Support Obligations with Liens

Spouses can secure DSOs or property settlements with liens on property. Under 11 U.S.C. § 522(f)(1) and Farrey v. Sanderfoot (1991), liens created at the same time as the debtor’s new property interest in divorce cannot be avoided. This protects ex-spouses’ financial rights post-divorce.

Final Thoughts: Understanding how bankruptcy intersects with family law is essential to protecting clients’ rights—whether ensuring support survives discharge or preserving assets for a true financial fresh start.

Contact Rountree Leitman Klein & Geer, LLC to learn more or schedule a consultation.

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Buying a Home After Bankruptcy in Georgia: Steps to Rebuild Your Credit

8/27/2025

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Will B. Geer
Partner
E-mail Will

You’ve filed for bankruptcy in Georgia, and now you’re thinking about buying a house. Many people assume that bankruptcy permanently ruins your chances of ever owning a home again. That’s simply not true.

While bankruptcy will initially lower your credit score (often by about 150 points), it doesn’t put homeownership out of reach forever. In fact, many people start receiving new credit card offers shortly after their discharge. Why? Because under Chapter 7, you can’t file for another discharge for eight years, making you less risky to lenders.

Of course, taking on new debt right away isn’t always wise. The key is rebuilding your credit responsibly. Here are some proven strategies to put yourself back on track toward qualifying for a mortgage with a competitive rate.

Pay Your Bills on Time

This is the single most important thing you can do to repair your credit. Whether it’s rent, utilities, a car note, or a mortgage you kept through bankruptcy, always make your payments on time. Payment history makes up the largest portion of your credit score. Consider setting up automatic payments so you don’t have to worry about missing a due date. One late payment can undo months of hard work.

Use Credit Cards Responsibly

After bankruptcy, credit card offers will arrive. The trick is to use them only if you’re confident you can pay off the balance in full every month. Start small. For example, charge just one recurring bill—like gas or your cable bill—to the card. Pay it off at the end of the month. Once you’ve proven to yourself that you can handle it, gradually expand your usage. This helps rebuild your credit quickly and demonstrates responsible borrowing.

Save for a Down Payment

When it comes to buying a house, cash is king. Saving for a 20% down payment not only helps you qualify for a mortgage, but it can also lower your interest rate and monthly payments.

Check Your Credit Report

About four months after your bankruptcy case closes, request a copy of your credit report. Make sure all debts included in your bankruptcy are reported correctly. If you see old accounts still showing balances, talk with your attorney about disputing those errors.

Add a Second Credit Card

If you’ve successfully managed one card for several months, consider applying for a second one. Again, the rule is the same: never carry a balance. Using multiple cards responsibly shows lenders you’re managing credit well, which helps increase your score faster.

Final Thoughts

Rebuilding your credit after bankruptcy takes time and discipline, but it’s absolutely possible. By paying bills on time, using credit strategically, saving for a down payment, and monitoring your credit report, you’ll be well on your way to qualifying for a mortgage and achieving your goal of homeownership.

Will Geer is a partner with Rountree Leitman Klein & Geer, LLC in Atlanta, Georgia. Will specializes in chapter 7 and chapter 11 bankruptcy. For a consultation, please call our office at 404-584-1238 or submit a request online.

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How Can I Get Rid of a FIFA (Writ of Fieri Facias) in Bankruptcy?

8/1/2024

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Will B. Geer
Partner
E-mail Will

No, I'm not talking about the international soccer club or that guy on Food Network with the annoyingly frosted tips.

A Writ of Fire Facias is simply the document issued by the county clerk's office to record a lien on all your property within that county. This includes both real (like your house) and personal (like your car) property. It is essentially a fancy legal term for a judgment lien. If you have a judgment lien out there, I can find it and strip it off all your property with either a Chapter 7 or Chapter 13 bankruptcy.

You can only have a FIFA recorded against you if you have been sued. First, the sheriff or some private process server will come to your door and hand you a large envelope with a stack of papers in them called the summons and complaint. The summons gives you instructions on when you need to file a formal legal answer to the complaint against you. The receipt of these papers is called "getting served." If you do not file a proper answer, the creditor suing you can ask the court to enter a Default Judgment against you. If this happens, shortly thereafter, a Writ of Fieri Facias can be filed for the requested amount that the creditor is trying to recover from you. This amount will continue to accrue interest at the statutory rate for as long as it remains unpaid, which will make it very difficult to ever pay off in the future.

Fortunately, in either a Chapter 7 or Chapter 13, I can avoid the judgment lien (FIFA) on any household goods that are exempt under applicable state law. Most people's property will be fully exempt, or protected, in a Chapter 13 or Chapter 7 bankruptcy. Also, if you own real property that already has a mortgage on it, that mortgage will likely be worth more than the value of the property. For instance, if your house is worth $150,000, and you owe the bank $140,000, you $10,000 of equity. If Midland Funding or some other debt buyer sues you, you choose not to defend it, and they pop you with a $20,000 writ of fieri facias, they can potentially do a sheriff's sale on your home and take the $10,000 in equity you have.

But, if you file bankruptcy, your Georgia bankruptcy exemptions will allow you to protect that entire $10,000 in equity, meaning that we can avoid that FIFA completely. This will turn a secured debt (a debt that is secured by some collateral, such as your house or car) in to an unsecured debt (debt that is not secured by anything but a promise to pay, like credit cards or medical bills).

If you want to figure out how much your home is worth, check out Zillow.com and your local tax assessor. Those are good starting places, and many Atlanta bankruptcy judges will accept valuations from these two sources.

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Five attorneys selected as 2024 georgia super lawyers

2/9/2024

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Rountree Leitman Klein & Geer, LLC proudly announces that partners William A. Rountree, Hal J. Leitman, David S. Klein, Will B. Geer, and Alexandra M. Dishun have been honored as 2024 Georgia Super Lawyers. This prestigious recognition underscores Rountree Leitman Klein & Geer, LLC's commitment to excellence and leadership in the legal profession.

Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The selection process includes independent research, peer nominations, and peer evaluations. Each year, only the top 5% of attorneys in each state are selected as Super Lawyers, while only the top 2.5% of attorneys are selected as Rising Stars, making this recognition a significant achievement.

"We are thrilled to have five of our partners recognized as Georgia Super Lawyers for 2024," said David S. Klein, Partner at Rountree Leitman Klein & Geer, LLC. "This honor reflects our firm's dedication to providing exceptional legal representation and our commitment to serving our clients with integrity and excellence."

Founded in 2018, Rountree Leitman Klein & Geer, LLC has established itself as a leading boutique law firm in the Atlanta area, known for its comprehensive legal services and unwavering dedication to client success. With a focus on corporate and individual bankruptcy, commercial litigation, real estate litigation, and debtor-creditor matters, the firm's attorneys combine their expertise, experience, and innovative approaches to deliver outstanding results for their clients.

Rountree Leitman Klein & Geer, LLC's team of attorneys includes some of the most respected legal professionals in Georgia, with a track record of success in these areas of law. The firm's commitment to professional excellence and client satisfaction has earned it a reputation for excellence and trust within the legal community and among clients.

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What Every Parent Should Know About Bankruptcy

1/15/2024

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Filing bankruptcy has significant ramifications, and one that often slips under a parent's radar is the effect bankruptcy will have on the 529 qualified tuition program they have been diligently contributing to for the last several years. As a parent myself, I want to do the best I can to ensure that my daughers receive the absolute best education possible, and with tuition costs outpacing inflation by an astronomical rate, there is no telling how much a four-year degree will cost our family. That's why we, and many other parents, have been contributing a portion of our income to a tax-advantaged college savings plan. Unlike your 401k retirement plan; however, a 529 savings plan is not offered the same protections under the bankruptcy code.

What is a 529 Plan? A "529" college savings plan is aptly named for the tax code section creating it. The benefit of a 529 plan is that deposits grow tax-free and any withdrawals spent on education related expenses such as tuition and books are tax-free as well. There are, of course, heavy penalties for withdrawing funds to pay off creditors or take an Alaskan cruise with the family.

529 Plans in Bankruptcy. 529 college savings plans are offered a certain level of protection under the bankruptcy code; however, unlike your retirement accounts, your kids' 529 accounts are not completely sheltered from your creditors. You see, under the bankruptcy code, all property of the debtor as of the filing of the petition date becomes property of the bankruptcy estate. This is a separate entity controlled by the trustee assigned to your case. The trustee's job is to seize and liquidate all your non-exempt assets for the benefit of your unsecured creditors. Under Georgia law, certain property, such as $10,000 of equity in your house, virtually all your retirement savings in a 401k or IRA, certain dollar amounts in household goods, etc., can be claimed as exempt from liquidation by the trustee. Non-exempt assets are the property left over after you have claimed all your exemptions under either federal or state law, depending on where you are filing bankruptcy. In addition to exempt assets, the trustee cannot liquidate assets that are not property of the estate, which includes certain funds contributed to a 529 savings plan. Here's the run-down of what every parent should know about 529 plans in bankruptcy:

All funds contributed to a 529 savings plan within 1 year prior to the bankruptcy filing are deemed property of the estate and are therefore capable of being liquidated by the trustee. So ANY money you have contributed in the year before you file will be seized by the trustee, unless you have an available exemption to shelter it.

Funds contributed to a 529 savings plan more than 1 year but less than 2 years prior to the bankruptcy filing date are exempt up to $5,000. What this means is that if you contributed $10,000 to your kids' college savings plan 400 days prior to your petition date, only $5,000 of that money would be safe from your creditors.

For funds contributed more than 2 years prior to the date of your bankruptcy filing, an amount that is equal to your state's maximum contribution limit per beneficiary will be excluded from the bankruptcy estate. To illustrate, in Georgia, if you contributed $100,000 to the Georgia Higher Education Savings Plan (GHESP) more than 2 years prior to your bankruptcy, that entire amount would be safe from creditors because Georgia's cumulative contribution limit of $285,000 per beneficiary. Any amount over $285,000 would not be safe. Other states have varying contribution limits, so if you are worried about your kid's college funds in your bankruptcy, please consult a local bankruptcy attorney to assist you in making the right decision.

As more food for thought, funds contributed to a 529 savings plan will only be protected if the beneficiary is your child, step-child, grandchild, or step-grandcihld. No saving grace if the funds were contributed for your brother, sister, niece, or nephew.

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Our Blog.

Bankruptcy and Divorce: A Guide for Family Lawyers and Consumers

Bankruptcy and Family Law: What Every Family Lawyer and Consumer Should Know

Overview of Bankruptcy Chapters

Chapter 7: Liquidation and the “Fresh Start”

Chapter 13: The Wage-Earner’s Plan

Chapter 11: Reorganization for Businesses and High-Income Individuals

The Bankruptcy Discharge

The Automatic Stay

Domestic Support Obligations (DSOs)

“In the Nature of Support” — How Courts Decide

Attorney’s Fees

Priority and Preference Rules

Protecting Support Obligations with Liens

Buying a Home After Bankruptcy in Georgia: Steps to Rebuild Your Credit

How Can I Get Rid of a FIFA (Writ of Fieri Facias) in Bankruptcy?

Five attorneys selected as 2024 georgia super lawyers

What Every Parent Should Know About Bankruptcy

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