Thursday, July 19, 2012

Seven Common Chapter 7 Bankruptcy Myths

Seven Common Chapter 7 Bankruptcy Myths
King and King Bankruptcy Attorneys posted on Tuesday, July 19, 2012

Chapter 7 bankruptcy allows people to discharge their debt. The process is called asset liquidation because the assets of the individuals can be sold to pay back creditors. However, numerous protections remain in place to prevent the loss of all assets, especially those necessary to enable the individual to start a financially successful future. Although most individuals qualify for this, some do not take advantage of it because of the numerous myths about the process. Those who are facing financially difficult times, regardless of why that is may wish to contact an attorney to discuss their options.

Here are a few common Myths.

In Chapter 7 bankruptcy, individuals request the court to grant them a discharge, which means they no longer have to pay back the funds included within the filing. When you go bankrupt, there are consequences. Yet for most, this is the best way to start a strong financial future. Don’t believe these common myths.

1. You will lose your home. Under state and federal law, some assets have protection, depending on the value. For those with a high amount of equity in their home, it is possible the trustee will force the sale, but this is rare in most cases and finding a good attorney will help.

2. Chapter 7, chapter 11, or chapter 13 will work for me. Not true, speaking to a qualified professional can help you figure out what type of bankruptcy you need to file.

3. All types of debt qualify. That is not the case because federal income tax debt, student loans, and child support and alimony are non-dischargeable. These will remain after you file.

4. It ruins your credit forever. Not true, you can rebuild your credit over time. Additionally, those who are unable to meet their financial obligations right now may be better off filing in the long-term, especially if they cannot pay off their debt within the next three to five years.

5. Everyone will know. Again, it is a public record, but what is different here is that unless you tell people about it or they follow court records closely, they will not know.

6. You will lose your family collectibles. Most states have specific allowances for various types of assets to protect them. As long as the value remains under the state-appointed threshold, you should be protected.

7. It takes too long. Most cases process within two to three months. You could be debt free by that time.
Chapter 7 bankruptcy is an opportunity to finally get the financial help you need. Do not put off the opportunity that this could provide for you. Instead, take steps to move towards this process by speaking to an attorney about your situation.

When it comes to filing for Chapter 7 bankruptcy Atlanta residents know that they need an experienced attorney on their side to get the best results. Visit the following for more information about your options: .

Wednesday, July 11, 2012

Rebuilding Credit After Bankruptcy

Rebuilding After Bankruptcy
July 12, 2012

Can you rebuild your credit after bankruptcy?
This is a question most of our clients ask. One of the facts of bankruptcy is that although it initially has a negative impact on your credit, it can actually improve your credit for a very logical reason: After you file a Chapter 7 bankruptcy, your debt-to-income ratio dramatically improves because you have little to no old debt and more money available to pay on new debt.

When rebuilding credit the length and type of your employment can make a difference - the longer you have worked at the same job, the easier it will be to obtain new credit.
However, credit rebuilding steps do not end with your employment history.
First, keep in mind why you filed bankruptcy in the first place. If it came because of  a job loss, illness or divorce, you are a good candidate for moving forward and establishing new credit. Whatever the reason, be sure to address the issues that led to filing for bankruptcy.

The next step may be to apply for a secured credit card. With this, you deposit money with a lender as security and your credit limit is usually the amount of the deposit. This is different than a debit card, which has no element of credit lending or credit history rebuilding record.

Also, pay your existing debt, such as installment loans you may still have, on time. This is especially crucial with secured loans such as cars or mortgages. Each month you pay on time, it is reported to the credit bureaus and helps strengthen your score.
After you have a secured credit card, you may want to apply for a store card from a gas company or department store. Using your revolving credit lightly, but regularly can help restore your credit score.

The mix of credit cards, installment loans and store cards used and paid regularly on time can be a fast track to restoring your credit rating after bankruptcy. It can be accomplished in as little as two years in conjunction with a good employment history.
If you are thinking about bankruptcy, we can help. King and King Bankruptcy Attorneys 404-524-6400

Thursday, July 5, 2012

How do you know when it's time to declare bankruptcy?

How do you know when it's time to declare bankruptcy?

As the ongoing housing crisis in Georgia and the country continues to influence our day to day lives, one of the ripple effects is the desperate financial situation of homeowners who continue to struggle with debt, sometimes even years after losing their homes to foreclosure.
Honest people who want to make good on their debts are increasingly overwhelmed as lenders continue to pursue deficiencies from years past. Attempting to make even the minimum payments on a sea of debt can wipe out retirement savings and max out credit cards. Then, many find it impossible to rebuild their financial lives.

It takes only a small shift in circumstance to make repayment impossible, loss of employment, divorce, a health or housing crisis. Remaining in denial about the futility of repaying all debt is stressful and takes a toll on relationships, family and health. When your liabilities are excessive, and your assets are minimal, if not gone, it is time to take a rational look at an often emotional, decision: Should you declare personal bankruptcy?

In today’s economy, personal bankruptcy filings are no longer seen as the end of your credit worthiness. These filings have become an acceptable solution to help you organize your debt, and free you from years and years of making minimum payments that will never go away. If you qualify, filing for Chapter 7 or Chapter 13 bankruptcy may be an effective way to restore your financial future and rebuild your dreams.
If you are considering bankruptcy the most important thing to do is to find a reputable lawyer to advise you.
For instance, in a Chapter 7 bankruptcy filing, you must meet a “means test” which will look at your income and debt to determine your true need for relief. These guidelines vary from state to state.

If you have tried to meet your obligations, but have been battered by economic forces beyond your control, the decision to take action and take control of your finances can be the beginning of a stable financial future.

If you need help, call King and King bankruptcy attorneys at 404-921-3790 today.