Chapter 13 Bankruptcy Can Help You Manage Your Debt

Chapter 13 Bankruptcy Can Help You Manage Your Debt

King and King Bankruptcy Attorneys 9/26/2012

In the past, bankruptcy was viewed negatively by most.  Today, however, the American Bankruptcy Institute reports that bankruptcy was unavoidable for nearly 1.5 million individuals and more than 35,000 businesses nationwide. Georgia residents considering filing for bankruptcy relief should know that attitudes have shifted, and many view bankruptcy as a solution to ease the hardship of debt.

Bankruptcy is a legal process designed to eliminate overwhelming debts in a variety of ways. One form of bankruptcy is Chapter 13, which is commonly referred to as "reorganization" or "wage-earner" bankruptcy.  Chapter13 bankruptcy allows filers to clear a large share of their debt through a repayment plan.

The repayment plan that borrowers enter into establishes the terms under which the filer will repay their debt. The repayment term typically runs between three and five years, and a trustee assigned by the court oversees the repayment process. What debt is included in the final repayment plan requires a collaborative process, which includes both the courts and the creditors. Throughout the process, creditors are allowed to comment on the terms of plan.

In the end, the court must approve the final plan. Once the plan has been approved, the trustee has been assigned and the terms of the repayment plan have been established, the court discharges remaining debt that falls outside the terms of the final agreement. For some, a little debt reorganization is all the help they need to get back on track. It doesn't take much to fall behind. Fortunately, with a little help, it is possible to stay on track to find a fresh start. There are options available, even when the situation is troubling. For a free consultation with a professional bankruptcy attorney call King and King at 404-524-6400

Source: CBS News, "Number of individual bankruptcy filings drop," Ray Martin, Sep. 11, 2012

Can a bank foreclose on your property after bankruptcy?

Can a bank foreclose on your property after bankruptcy?

King and King Bankruptcy 9/21/2012

It’s true in most cases that bankruptcy filing will stop a foreclosure, as long as a foreclosure sale has not taken place. However, many debtors wonder if their bank can come back after the bankruptcy case is closed and initiate foreclosure proceedings once again. Let’s take a closer look at this question.

Fact: the automatic stay imposed through a bankruptcy filing buys a debtor time in which to review and reorganize all of their debts. No collection efforts may take place while the stay is in effect, and that includes foreclosure proceedings. However, in some cases a lender may petition the court to have the stay lifted so that it may reinstate a foreclosure where it left off in order to take the property back.

In order to lift the stay, the lender must show that the homeowner is not current on the mortgage payments.  As long as you stay current on your mortgage payments and property taxes while in bankruptcy, you are not at risk.

Nevertheless, the lender may wait until the bankruptcy case is closed to start (or continue) foreclosure proceedings. If a debtor falls behind on payments after a bankruptcy is concluded, a lender may initiate foreclosure proceedings on the property.

If you have questions about whether a bankruptcy would be appropriate to save your home from foreclosure, an experienced attorney can advise you. Call King and King in Atlanta, Georgia for a free consultation today--404-524-6400.

Chapter 7 vs. Chapter 13 Bankruptcy

Chapter 7 vs. Chapter 13 Bankruptcy

September 17, 2012 by King and King Bankruptcy Attorneys

The two most commonly used types of bankruptcy are called Chapter7 bankruptcy and Chapter 13 bankruptcy. The one that you will file depends on your situation. The first is Chapter 7 bankruptcy.

In Chapter 7 bankruptcy, any unexempt property will be liquidated and turned over to a trustee. The trustee converts it to cash and then pays your creditors.  Do not worry—exemptions are generous and we are able to protect all of our clients’ property in almost every case.

You will most likely be advised to file Chapter 7 bankruptcy if you do not have enough disposable income to pay your obligations via a payment plan or if you are unemployed.

Chapter 7 Bankruptcy Advantages

Chapter 7 bankruptcy is a straightforward process. After the liquidation process, the trustee is expected to process your discharge from debt. After the discharge, your creditors do not have any claim on your future earnings or properties and possessions, so you truly get a fresh start.

Credit Impact

Chapter 7 bankruptcy’s major credit impact is that it lowers your credit score, and it stays in your record for up to 10 years. However, you should be able to rebuild your credit immediately after discharge and in most cases have a credit score higher than before bankruptcy within just a few years.

Chapter 13 Bankruptcy:

This type of bankruptcy is available to individuals with disposable income. With a Chapter 13 bankruptcy, your creditors will work with your bankruptcy attorney, your Chapter 13 Trustee, and the Bankruptcy Court to restructure your debt and create a repayment plan. These payments can last 3 to 5 years, depending on the agreed plan.

Chapter 13 Bankruptcy Advantages

The biggest advantage of Chapter 13 is that you get to keep your assets, including properties. This can also be done with Chapter 7 using exemptions.  Chapter 13 can also stop the foreclosure on your home, repossession of your car, wage garnishment, and it gives you more time to pay off your debt.

It is best to consult a bankruptcy attorney before deciding which type of bankruptcy is the best option for you. Call King and KingBankruptcy Attorneys in Atlanta, Georgia for a free consultation today, 404-524-6400.

When Facing Foreclosure Be Aware Of Mortgage Relief Scams

When Facing Foreclosure Be Aware Of Mortgage Relief Scams

Bankruptcy and Foreclosure – Saving Your Home in Bankruptcy

King and King Bankruptcy Attorneys 9/7/2012 

The thought of losing your home is a frightening one, and it can make some solutions that would normally seem too good to be true seem like a good idea. Today Fox News reported on six Mortgage Relief Scams that anyone facing foreclosure should be aware of.

1. Scammers posing as official counselors
2. Offering to perform a mortgage audit
3. Money-back guarantees
4. Advising you to stop contacting your lender
5. Misrepresented attorneys general settlement
6. Mass joinder scam

Read the full article here

Chapter 13 bankruptcy may be able to save your home. Because of the complexity and recent major changes to the law, consult competent legal counsel before you file any chapter of bankruptcy.  A good attorney can review your employment status and credit as well as personal circumstances to help you pursue a debt relief solution that is appropriate for your situation and goals.  Furthermore, if a deal seems too good to be true, have an attorney look at it before you make a costly commitment.  

King and King in Atlanta GA can help; call today 404-524-6400