Friday, November 8, 2019

What is the Income Limit for Filing Chapter 7 Bankruptcy in Georgia?

In order to file a Chapter 7 bankruptcy, you must pass a means test which compares your disposable income to the average median income for a family of the same size in Georgia.

What is a Means Test?
A Chapter 7 bankruptcy is a short process, typically lasting no longer than six months. The Chapter 7 means test is a method of qualification designed to reserve Chapter 7 bankruptcies only for those who truly can't afford to repay their debts in full. Your bankruptcy attorney will walk you through the process to ensure things go smoothly.

Taking a Means Test
To begin a means test, compare your annual income to the median income for the same size household in Georgia. If you make less than your state’s median income, you qualify and are free to file a Chapter 7 bankruptcy (presuming all other eligibility requirements are met). If you make the same, or more than, the median income for Georgia, then you must continue on with the test. In part two of the means test, you use your monthly income for the six months before you plan on filing bankruptcy. By deducting your monthly expenses from your current average monthly income, you calculate your disposable income. The lower your disposable income each month, the more likely you may qualify for Chapter 7. The Means Test can be very very complicated. Your bankruptcy attorney will help you accurately prepare your Means Test. 

What Happens If You Don't Qualify for Chapter 7 Bankruptcy
If you don’t qualify for a Chapter 7, you can file a Chapter 13 bankruptcy instead. A Chapter 13 is known as a repayment bankruptcy and can help you repay your debts over either a three-to-five year period.

If you're thinking about filing bankruptcy, but aren't sure if you should move forward, call King & King at 404-524-6400 to schedule a free consultation with an attorney. King & King is dedicated to helping clients file for personal bankruptcy and rebuild their lives afterwards.

Friday, October 25, 2019

Can You Stop Auto Repossession by Filing Chapter 13 Bankruptcy In Georgia?

If you have fallen behind on your car payments, repossession can be right around the corner. It can be a shock to walk out of work or your home and find your vehicle has been taken! Living without transportation can be challenging for you and your family. Filing bankruptcy can stop repossession.
In both a Chapter 7 and a Chapter 13 bankruptcy, an “automatic stay” goes into effect as soon as you file. The “automatic stay” prevents most creditors from continuing to pursue collection efforts against you while you are in your bankruptcy, including repossession.
If you file a Chapter 13 bankruptcy, you typically have three options:

Surrender your car
Pay what you owe over 3 – 5 years
“Cram down” your loan – In a Chapter 13 bankruptcy, you may be able to reduce the amount you owe on your car to its current value. This is called a “cram down.”  You may also be able to cram down your interest rate to much lower than what you have on your loan.  Your bankruptcy attorney has experience with cram downs and will be sure to use this option if possible.

It is possible to keep your car when you file bankruptcy. The key is to act fast and speak with a qualified bankruptcy attorney, such as King & King, at the first sign of financial trouble. The sooner you get a case number, the sooner collection calls and repossessions are put to a stop. We have the background you need to get a fresh financial start, and can help you organize your debts in a way that fits your budget. Call us today for a free consultation at 404-524-6400.

Monday, September 23, 2019

Can I Rebuild Good Credit After Filing Bankruptcy In Atlanta?

Filing for bankruptcy can be an important first step towards giving yourself the fresh start you deserve. When you file bankruptcy and get relief from your bill problems, you no longer owe any money to your creditors. You no longer have to suffer with the continuing delinquencies.
 In order to preserve your newfound financial stability, you must take care to rebuild your credit and avoid common pitfalls. If you take some simple steps to rebuilding your credit after bankruptcy, your credit score will start to rise.  After as little as 18-24 months, your credit report can be a positive one.

Improving Your Credit Score
There are a number of things you can do to improve your credit score with a bankruptcy discharge on your credit report, including the following.

·         Acquire a Secured Credit Card. It may seem counterintuitive, but in order to rebuild your credit, you will need to take out loans and repay them on time. A secured credit card gives you credit up to the amount you have in the bank that issues the card.

·         Take out an Installment Loan. An installment loan is any kind of a loan that requires monthly payments, such as a car loan. You must make your payments on time every single month in order to use your installment loan to rebuild your credit.

·         Check and Correct Your Credit Report. After your bankruptcy has been discharged, check your credit reports. You are looking for errors: debts you have repaid but still appear and any other types of mistakes. Contact the credit agency where the mistake appears to have it corrected.

In many ways, once you have completed a filing for Chapter 7 or Chapter 13 bankruptcy your financial future is brighter. It is important that you avoid the mistakes and traps that could get you in trouble again. King & King is dedicated to helping clients file for personal bankruptcy and rebuild their lives afterwards. For a free initial consultation, contact our office at 404-524-6400.

Tuesday, September 17, 2019

Are Debt Collectors Legally Allowed To Contact You in Georgia?

One of the most troubling things about not being able to pay your debts are the calls and letters from creditors. When you have bills you can’t pay, you may start getting endless phone calls and letters requesting payment. This is normal, but there are laws about how debt collectors may behave.

No matter how deep in debt you are, you have legal rights. The Fair Debt Collection Practices Act protects you from unfair and harassing treatment from creditors and debt collectors hired to secure payment. Bankruptcy can also stop debt collectors from contacting you.

There are many different types of behavior that debt collectors may display that are actually against the Fair Debt Collection Practices Act. If you are struggling with debt and facing financial stress, the last thing you need is harassment. Here are a few things debt collectors cannot legally do:

  • Debt collectors can’t threaten you with arrest or by taking action to harm your credit rating
  • Lie to you or misrepresent who you are talking to in an attempt to secure payment
  • Share your personal information about your debt with anyone else, such as your employer or family. However, they can contact your family to locate you
  • Call you before 8 am or after 9 pm, based on your time zone
  • Call you at work, provided the debt collector is aware your employer doesn’t approve of these phone calls
  • Harass, oppress, or abuse you
  • Falsely imply that you have committed a crime
  • Use unfair practices in an attempt to collect a debt
  • Conceal his or her identity on the phone
  • Disregard a written request from you to cease further contact

When you file for bankruptcy, an “automatic stay” goes into place. This stops all collection efforts, including calls from creditors. Call King & King to schedule a free consultation to learn more about how this process works.
You don’t have to endure creditor harassment. Filing for bankruptcy can free you of your debts and give you a brighter financial future. Call us today at 404-524-6400

Tuesday, September 10, 2019

Are Creditors Trying to Take Your Car or Property? There Is Something You Can Do.

One of the most stressful aspects of dealing with debt you can’t repay are the debt collectors trying to get money from you. Sometimes, these efforts can also involve attempts to collect on debts by taking your property. Repossession is when a third party can legally take your property to repay a debt.

How Does Repossession Work?

Repossession can happen when you are behind on your payments for your car, furniture or other items bought on credit. Here are a few aspects of repossession it can be helpful to understand:

· Repossession can start as soon as you default on your contract, missing even a single payment in some cases.

· In most cases, your creditor will not need a court order to start repossessing property.

· Once the property is seized, it is difficult, but not impossible, for the borrower to reverse the situation.

Bankruptcy may be an option. A Chapter 7 Bankruptcy will temporarily stop your lender from being able to repossess your vehicle and may provide you with sufficient time to make a payment to bring your account current. A Chapter 13 Bankruptcy may also be an option. Chapter 13 would allow you to keep your vehicle and catch up on the back payments by repaying the amount you’re behind over a 3 to 5 year period.
The threat of losing your property is frightening. But you have options! By filing for bankruptcy, you may be able to make the repossessionstop by putting bankruptcy’s “automatic stay” to work in your case.
Call King & King at 404-524-6400 to schedule a consultation to discuss your repossession situation with an attorney – the evaluation of your case is free.

Monday, July 29, 2019

You Can Keep Your Assets Filing Chapter 13 Bankruptcy In Georgia

There are two ways for people in Georgia to file for bankruptcy: Chapter 7 and Chapter 13. Each involves reviewing how much debt you owe and how much income you bring in each month. Often, you will be eligible for either one or the other, but in some cases, you may qualify for both Chapter 7 and Chapter 13 bankruptcy. If this is your situation, you may have a choice between the two. Each has strengths and weaknesses but, if you have a large amount of assets, Chapter 13 offers advantages that may make it more suitable. Your bankruptcy attorney will review the pros and cons with you so you may make an informed decision.

If you are worrying about losing your car, home, or other assets upon filing for bankruptcy, Chapter 13 may be the better option for you. While Chapter 7 involves liquidating unexemptable assets to satisfy your debts, Chapter 13 reorganizes your debt into a repayment plan and protects your property.

Another advantage of Chapter 13 is that you know going into it that the repayment plan will work for you because it’s built from your current financial situation and income. Under your repayment plan, you may only pay off a portion of some debts but may pay off others entirely.  Each case is different.  Your attorney tailor-makes your case for you, depending on a variety of factors. 

For most clients, the duration of your repayment plan typically lasts from three to five years. King and King will evaluate your situation and determine if Chapter 13 or Chapter 7 bankruptcy is right for you. Call our office today at 404-524-6400 to schedule a free, confidential consultation to discuss your options or visit us at

Tuesday, July 23, 2019

Can Bankruptcy Eliminate All Credit Card Debt?

There are two primary forms of debt that Georgia residents should understand. The first is secured debt, which is any type of debt associated with collateral. Examples of secured debt include mortgages and auto loans. The other type of debt is unsecured, meaning there is no collateral associated with it. Credit card debt is the most common type of unsecured debt.  Tax-related debt can be either unsecured or a third category: priority. 

If your lawyer determines that you qualify for Chapter 7 bankruptcy, you can expect your credit cards and associated debt to be eliminated. If you do not qualify for Chapter 7 relief, it may be best to file under Chapter 13.  For example, Chapter 13 may be appropriate if your income is too high to qualify for Chapter 7. In such a case, Chapter 13 bankruptcy would allow you to repay as much of your credit card debt that you can afford to repay based upon your available income, and the remaining amounts would be eliminated.

If you find yourself facing insurmountable credit card debt, King & King can help. Call today at 404-524-6400 for a free consultation. We can advise you of what is the best way for you to eliminate credit card debt and get a fresh start.