Tuesday, November 27, 2012

How to Get Credit After Filing for Bankruptcy

How to Get Credit After Filing for Bankruptcy
King and King Bankruptcy Attorneys 11/27/2012

During our bankruptcy consultations, one of the biggest worries our clients have is that they’ll never get credit again—or at least not for the 10 years during which bankruptcy shows on their credit report. Our clients are usually surprised to hear it won’t be as difficult as they fear. Bankruptcy will affect your credit score in the beginning, but you will be able to get credit again and rebuild your score. Bankruptcy actually helps your chances of getting credit if you had high credit card debt before the bankruptcy and collections or charge-offs. Bankruptcy gives you a clean slate. 

Secured credit cards:
 A credit union or a bank may give you a secured credit card. This is where you give the bank funds to “secure” the credit on the card. Some lenders might want you to deposit the full amount of the credit limit (e.g., a $500 deposit in exchange for a card with a $500 limit), whereas others might only require you to secure a certain percentage of the limit with a deposit (e.g., a $250 deposit in exchange for a card with a $500 limit).

Credit cards:
Many people get offers for credit cards right after bankruptcy. There are a number of companies that specialize in credit cards after bankruptcy because they can get higher interest rates or fees. Make sure you understand the terms of these offers and take the best one. 

Car loans:
Much like credit cards, there are auto lenders out there who will give you a car loan right after bankruptcy, usually at a higher interest rate. Another option is to get a co-signer for the loan. The lender may agree to refinance it later if you make regular on-time payments for a period of time.
After about six to twelve months of on-time payments toward new accounts, even small ones, your credit will start to improve. From there, getting more credit should get even easier. Some people who work diligently toward rebuilding credit can even buy a house within just a few years after bankruptcy. 

If you have questions about your credit after a bankruptcy, contact King and King at 404-524-6400 for a free consultation. 

Saturday, November 24, 2012

Medical Debt and Chapter 7 Bankruptcy

Medical Debt and Chapter 7 Bankruptcy              
King and King bankruptcy attorneys, Saturday, 24 November 2012

Serious illness can happen to anyone at any time. In addition to medical bills, prolonged illness or injury can interfere with your ability to work. Missed work equates to less income, which additionally complicates the financial battle.

Medical problems and the debt that results from them are an extremely common cause for filing Chapter 7
Fortunately, there are ways to deal with medical debt. If you are overwhelmed with expenses, Chapter 7 bankruptcy is one possible road to security. Chapter 7 bankruptcy is a form of personal bankruptcy, which clears out unsecured debts. The process generally moves fairly quickly. The average case takes as little as four months from the time of filing.

Bankruptcy courts classify medical debt as unsecured debt, which means that it may be discharged within the bankruptcy process. An unsecured debt is one that is not protected by a physical item of property as collateral. If you are unable make payments on unsecured debts, creditors cannot generally recover any items. However, they may be able to sue you and garnish your wages.
Within the Chapter 7 process, all eligible debts included in the filing should be discharged -- any legal obligation to repay is extinguished.

If you are overwhelmed by serious medical debt, contact King and King today. Our bankruptcy attorneys can help you sort through your finances and construct a solid debt-reducing plan. Call us at 404-524-6400.

Wednesday, November 14, 2012

Common Questions about Chapter 13 Bankruptcy

Common Questions about Chapter 13 Bankruptcy
King and King Bankruptcy Attorneys 11/14/12

Managing money isn't always easy, and some people need more than one chance to get it right. If you’re living a lifestyle with a few comforts you don’t want to give up, or make more money than what income limits allow for filing Chapter 7 bankruptcy, you might be considering the possibility of Chapter 13 bankruptcy in order to give you a new start and help you get a handle on your finances.

What’s the difference between debt consolidation and Chapter 13?

At first glance, Chapter 13 bankruptcy can sound a lot like non-bankruptcy debt consolidation. The two are similar but have several key differences. With a Chapter 13 bankruptcy, creditors are court-ordered to comply with the terms of the debt settlement, while they have the option of declining under a standard debt consolidation plan. Also, with Chapter 13, the interest on certain types of debts stops accruing, so you can pay off what you owe without chasing down interest.  A Chapter 13 has an “automatic stay” which prevents creditors from attempting to collect a debt outside of the bankruptcy process.  Debt consolidation has no such protection.

Will I lose my assets or investments when I file Chapter 13?

Protecting assets and investments is one of the reasons why many people choose to file Chapter 13.  Speak with a qualified bankruptcy attorney to learn more about what assets you can protect in your bankruptcy.

Is Chapter 13 mainly for those who don’t meet Chapter 7 Guidelines?

While it is common for the Chapter 13 option to be presented to those who don’t pass the “means test” required for Chapter 7, there are many cases when even those with lower or moderate incomes may prefer Chapter 13 over Chapter 7.  Chapter 13 is a convenient reorganization of all of a debtor’s debts.  Also, many debtors can take advantage of “cram down” in Chapter 13, where interest rates and total amounts owed to certain creditors can be drastically reduced. 

Getting New Credit

When you file a Chapter 13 bankruptcy, your income levels are assessed to determine how much you can affordably pay towards your debts. For this reason, it is rare that new debt can be incurred during the 3-5 year repayment period. Any new credit you might get not only needs to be approved by the potential creditor, but also by Bankruptcy Court. Getting new credit is rare but possible during a Chapter 13 bankruptcy.

Every bankruptcy plan handled by King and King is customized for each individual case to obtain the very best results possible.  Contact us at 404-524-6400 for a free consultation today.

Thursday, November 8, 2012

Which comes first — bankruptcy or divorce?

Should you file for bankruptcy before or after your divorce is finalized?

Which should you pursue first — bankruptcy or divorce?
This is an important decision and should in most cases be made BEFORE your divorce is complete. When one spouse files for consumer bankruptcy, it often sends the other spouse into bankruptcy too.

After divorce, domestic support obligations such as alimony and child support are not dischargeable during bankruptcy. Our attorneys can explain facts and legal options that will help you to make sound decisions about your future.

Your decision to pursue a consumer bankruptcy before, during or after divorce can be positively influenced by the guidance of experienced bankruptcy attorney. King and King as served bankruptcy clients in Atlanta and the surrounding areas with quality, full-service representation for Chapter 7 and Chapter 13 debt relief strategy; including the role that divorce can play in your decision.

Contact our bankruptcy offices today at 404-524-6400 for your free confidential consultation.

Tuesday, November 6, 2012

Can Filing Bankruptcy Dismiss Back Taxes?

Can Filing Bankruptcy Dismiss Back Taxes?

Taxes and Bankruptcy - 
Usually people associate bankruptcy with credit card, loan, or mortgage debt not knowing or realizing bankruptcy can also be used to eliminate liability for unpaid taxes.
The U. S. Bankruptcy Code permits discharge of certain back taxes, but several conditions do apply. Generally most business taxes are not dischargeable. People who qualify for tax discharge typically do so by filing either a Chapter 7 or Chapter 13 bankruptcy.  It is best to consult with an experienced professional to assess your unique situation. A qualified bankruptcy attorney can help determine whether you are eligible to obtain an IRS tax relief through bankruptcy.
Call King and King bankruptcy attorneys for a free consultation today. 404-524-6400

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