Saving Your Home From Foreclosure

Saving Your Home From Foreclosure

Home foreclosure can be one of the most frightening financial challenges to face. Losing your home cannot only leave you without a place to live, but can also destroy all the hard work you’ve put into your home. Owning a home is an important investment, and putting money towards a mortgage instead of rent can mean a more secure future. However, if the payments become too much and you begin to fall behind, then the bank can threaten to foreclose on your home.

How Foreclosure Works

Foreclosure means that the bank will take possession of your house and sell it. If you are faced with the prospect of foreclosure or if you have already received a foreclosure statement from your lending company, one option you have is to file for bankruptcy. This may be something that not only saves your home, but also gives you a clean slate to create a more stable future.

Chapter 13 Bankruptcy and Foreclosure

Many people file for Chapter 13 bankruptcy specifically to stop foreclosure.

In most cases, an automatic stay is entered as soon as a Chapter 13 bankruptcy petition is filed. The automatic stay will temporarily stop foreclosure, along with all other collection action, regardless of the stage of the foreclosure proceedings.

With the automatic stay in place, the debtor and their attorney have the breathing room to work out a Chapter 13 repayment plan.

Professional Help is Available

Taking the leap and filing for bankruptcy can be scary but, in the end, it can release you from a world of stress and financial pressure. You don’t have to lose your home or succumb to foreclosure. There are options available and King and King bankruptcy attorneys can help. Contact at our AtlantaBankruptcy Office today at 404-524-6400 for a free initial consultation. 

Can I Keep My Car In Bankruptcy?

Can I Keep My Car In Bankruptcy?

Posted on October 24, 2012  King and King Bankruptcy Attorneys

With the economy in trouble like it has been for the past few years, you have probably heard or even know people that have pursued bankruptcy to ease the financial burden of an underwater mortgage (owing more on a mortgage than it is actually worth).

A similar question that is becoming more and more common is whether or not people can use bankruptcy as a release for the financial burden of an underwater auto loan. While each situation is considered unique and therefore could provide different outcomes, if you are facing an underwater car loan there are a few potential bankruptcy options that you can explore with your bankruptcy attorney.

Chapter 7 Bankruptcies

Chapter 7 bankruptcies provide several options for debt relief, including some that may allow you to keep your car. As always, your options will depend on your specific situation. Here are a few options under Chapter 7:

Surrender the vehicle

Surrendering your car is an option to reduce the burden of auto payments and insurance. However, this is not a viable option for most people since they need their transportation to get to and from work.

Redeem the loan

Through judicial approval, you may be able to reduce your car debt to the fair market value. In other words, if your loan balance is $8,000 and your car is only worth $4,000 you may be able to reduce the balance of the loan by $4,000. Depending on your situation, your payment requirements may be either monthly payments or a lump sum payment. There is often a tradeoff of higher interest charges, so it’s important to run the numbers to see if a redemption will help you.

Chapter 13 Bankruptcies

In Chapter 13 bankruptcies, your options are different. You may choose to keep the car and have it rolled into your bankruptcy, where you will pay some portion–often a fraction–of the balance as part of your payment plan. If you’ve owned your car for more than two and a half years, you may qualify to have your outstanding balance adjusted to Fair Market Value and stretch the payments out over the life of the bankruptcy. In some cases, you may be able to keep your car and pay off your debt for a very modest monthly payment.

As you can tell, there are many choices in bankruptcy when it comes to your auto loan. If you want to keep your car, it’s important to get expert advice. If you are exploring the possibility of filing for bankruptcy, schedule a free consultation to learn about your options with an Atlanta, Georgia Bankruptcy Attorney, by calling 404-524-6400. Contact us today.

A Few Common Bankruptcy Myths

Dispelling A Few Common Bankruptcy Myths

Posted on October 16, 2012  King and King Bankruptcy Attorneys

If you are considering filing for bankruptcy, chances are you have received information from many different sources. Some of it is genuine information, some is opinion, and some is simply myth. It’s important that you have accurate information about bankruptcy, not falsehoods. Here is a list of some common bankruptcy myths and why they are not reality. We hope this will clear things up for you as you make decisions about your financial future.

Common Myths About Bankruptcy in Georgia

Myth: People who file bankruptcy lose everything.

Reality: In many cases, your bankruptcy attorney is able to help you keep important possessions. Bankruptcy law contains many "exemptions" which are designed to help people keep their house, car, retirement accounts, furniture and other property. Remember, bankruptcy is designed to help you, not hurt you.

Myth: Bankruptcy will destroy your credit.

Reality: In truth, if you are in a position where bankruptcy is an option, your credit may already be heavily damaged. While a bankruptcy filing does show up on your credit report for up to 10 years, your credit is not impacted that long. In fact, the fresh start bankruptcy provides allows you to rebuild credit rather quickly.

Myth: It’s hard to file for bankruptcy.

Reality: It is true that the bankruptcy laws changed in 2005, but the vast majority of people who qualified for Chapter 7 before the changes will still qualify today. If for some reason you do not qualify for Chapter 7, there would be nothing preventing you from filing for Chapter 13instead.

Myth: Filing bankruptcy prevents you from getting credit in the future.

Reality: By lowering your debt-to-income ratio, bankruptcy makes you a more attractive candidate for loans. In fact, many filers are able to secure a mortgage only a few years after their bankruptcy is complete. Creditors like to see that you are taking control of your finances. Bankruptcy is evidence of that.

Myth: Newspapers publish the names of people who file for bankruptcy.

Reality: Unless you are a celebrity, your bankruptcy is not really an item of public interest. Newspapers will rarely, if ever, publish the names of people who seek bankruptcy protection.

We hope you have a few more of the facts.  Have more questions? Schedule a free consultation with an experienced Atlanta, Georgia bankruptcy attorney; please contact King and King at 404-524-6400 today.

Wage Garnishment and Bankruptcy

Wage Garnishment and Bankruptcy

Posted on October 12, 2012  King and King Bankruptcy Attorneys

It’s a creditor’s job to collect on a debt. One of the most effective collection methods is wage garnishment. By garnishing wages, the creditor does not have to be concerned with the debtor’s willingness to send payments or pay the debt in full. The money is simply taken directly out of the debtor’s paychecks. Typically, a lender will not resort to wage garnishment until other collection methods have failed and the debtor has demonstrated an unwillingness to pay.

When a creditor threatens to garnish wages, a debtor often feels little can be done to prevent it. Working out a payment plan is one way to convince the creditor to refrain from garnishing wages.

Filing for bankruptcy is another option a debtor has to take control of debt. Filing for bankruptcy will also immediately stop wage garnishment and will completely prevent the creditor from garnishing a debtor’s wages.

Is Wage Garnishment the Best Option for Creditors?

According to a recent study, states that do not allow or put drastic limitations on a creditor’s ability to garnish the wages of debtors have lower rates bankruptcy filings; 42 percent lower according to the study. A creditor may be less likely to collect on a debt if a debtor files for bankruptcy.

However, the current economic recession has put creditors in the position of actively pursuing wage garnishment as a method of collecting on the debt owed. The recession has made it harder for debtors to repay debts and wage garnishment puts a creditor in first position to collect on a debt when there are multiple creditors.

If you are in debt and being threatened with wage garnishment contact an experienced Atlanta, Georgia bankruptcy attorney. King and King bankruptcy attorneys can help you understand all of your options to prevent wage garnishment and other collection efforts while helping you understand your options for taking control of your debt. Call us today404-524-6400

What Can You Expect After Bankruptcy?

What Can I Expect After Bankruptcy?

King and King Bankruptcy Attorneys 10/3/2012

If you have yet to file for bankruptcy but are seriously considering it, you may be asking yourself,  "Is there life after bankruptcy? Is there life after debt?" The answer to both questions is yes.

We want your bankruptcy efforts to succeed. We want to see your family restored to the sound economic footing you once had. Don't be afraid to ask for help. Contacting an experienced bankruptcy attorney for a consultation is the first step.

Mortgage payments, credit card debts, unforeseen medical bills: these concerns don't have to be forever. You can deal with them now. That is why federal bankruptcy protections are on the books — to help those who, often through no fault of their own, have fallen upon hard times.

On the other side of your Chapter 7 or Chapter 13 bankruptcyfiling, you can look forward to:

• An end to stress over your current financial problems

• Relief of debt pressures

• Credit Repair

• Eligibility for mortgage and motor vehicle loans

• An end to Collection Abuse

• A stop to repossession of personal items

• Prevention of wage garnishment

• Lifestyle and budget adjustments

• A clearer income tax picture

• A fresh start towards a brighter future

Bankruptcy attorneys have made a positive difference in many lives. We urge you to take action despite the emergence of many destructive, deceptive bankruptcy myths.

You will come away from your free initial consultation with a definite sense of your bankruptcy options. We are dedicated to your financial peace of mind. Contact King and King for a free consultation at 404-524-6400 today.