Thursday, February 21, 2013

Avoid Foreclosure and Get Rid of Debt?

Avoid Foreclosure and Get Rid of Debt?
King and King Bankruptcy Attorneys, 2/21/2013

If you’re facing a foreclosure, you are in trouble and trying to figure out where to turn.  You should select an attorney that is able to stop the foreclosure and help you to manage your other debt as well. When you file Chapter 13 bankruptcy, you are asking the Court to restructure all of your debts.

Many of your debts will be reduced or discharged through bankruptcy. Chapter 13 bankruptcy stops the foreclosure on your home and your other debts will be condensed and combined into a simple monthly payment that will allow you to regain financial stability.

Another benefit of filing for bankruptcy is you will be able to stay in your home during the proceeding, avoiding foreclosure and eviction. This can help reduce the stress of financial crisis you are facing. If you’re facingforeclosure or are behind on your mortgage payments, filing bankruptcy is a way to manage your debt and save your home from foreclosure.

If you owe more on your home than it's worth and have multiple liens, lien stripping may be an option for you. We take the debt that is over the value of the home and have it converted into unsecured debt, which may then be discharged in the bankruptcy proceedings. This is a tremendous benefit to our clients that qualify.

King and King bankruptcy attorneys are dedicated to providing information and guidance to individuals and families that are unable to pay their mortgages. If you have a question regarding foreclosure and bankruptcy in Georgia, please contact us at 404-524-6400 and we can connect you with one of our experienced bankruptcy attorneys for a free bankruptcy evaluation. 

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Monday, February 18, 2013

Will Bankruptcy Ruin My Credit Score?

Will Bankruptcy Ruin My Credit Score?
King & King Bankruptcy Attorneys, February 18, 2013

One of the questions we often hear from our Georgia bankruptcy clients is “will my credit score be completely ruined by bankruptcy?”  The first step in answering this question is understanding how credit scores work.

A credit score is derived from information provided by the three major credit-reporting agencies.  The credit score uses complex analyses from this information to provide a score ranging from 300 – 850.  A high credit score reflects a low credit risk individual.

According to the following categories make up a credit score (ranked in order of importance):

Payment History (35%): delinquencies, past dues, bankruptcies, etc.

Amounts Owed (30%): How much debt you carry, number of accounts with balances, proportion of credit lines and installment loans.

Length of Credit History (15%): When accounts were opened.

New Credit (10%): Numbers of recently opened accounts and credit inquiries.

Types of Credit Used (10%): Number of various types of accounts (credit cards, retail accounts, installment loans, mortgage, etc.)

If you’re like most people filing for Chapter 7 or Chapter 13 bankruptcy, much of the negative impact on your credit score has already occurred due to late payments, delinquent accounts, etc.   Consequently, a bankruptcy filing may have only a limited impact on the existing score. Further, as can be seen in the above-formula, after obtaining a discharge in a bankruptcy the credit score will quickly start to improve because you have eliminated all or most of your debt.  

Bankruptcy will give you a much-needed fresh start. With re-establishing your credit and monitoring your finances, your score could be back in the 700s within two or three years. Many of King & King’s clients have seen results like this with proper post-discharge management of your finances.

If you have questions about filing for bankruptcy, call King and King today for a free consultation 404-524-6400. 

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Thursday, February 7, 2013

Lien Stripping in Georgia

What Is Lien Stripping?
Lien stripping works within bankruptcy and refers to the process of eliminating your second or third mortgages from your primary residence. 

Which Liens Can I Remove?
Lien stripping allows you to get rid of the “unsecured” liens on your home.  When a mortgage or lien is put on your house, its priority against other liens is determined by when the lien was recorded with your county.  For the most part, the earlier recorded lien has priority over any subsequent liens. 
Here is an example of how lien stripping works in Georgia.  Say you own a house worth $100,000 and you have a $150,000 first mortgage.  You also have a second mortgage of $50,000.  In this situation, you can strip the second mortgage, eliminating it forever, presuming you meet other qualifications of being able to file bankruptcy.

What Happens To Stripped Liens?
Stripped liens in Georgia will receive the same treatment as other unsecured debts, such as credit cards, in your bankruptcy.  These debts usually receive nothing or a small amount and get wiped clean at the completion of your bankruptcy.  After discharge, your lender for the stripped lien will be required to remove its lien from your house.

Lien stripping is complicated.  It’s important to work with an experienced attorney who understands the complexity of bankruptcy law. Call King and King today for a free consultation at 404-524-6400.

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Friday, February 1, 2013

Chapter 7 Bankruptcy in Georgia

Chapter 7 Bankruptcy in Georgia

A Chapter 7 case is the most common form of consumer bankruptcy; it is limited to persons who have income below a certain level.  In a Chapter 7 case, the person is forgiven from paying certain debts in an attempt to provide a "new beginning" on life.   The debtor is permitted to keep a certain amount of belongings while a Trustee collects all of the "non-exempt assets" and sells them in order to pay as much to the creditor as possible.   Creditors get paid in order of their priority, with debts such as child support, taxes, and trustee expenses being paid first. 

Certain property is exempt, such as a vehicle, equity in your primary residence, retirement accounts and benefits, and various types of household goods and personal property.  In most cases, the debtor does not own sufficient non-exempt assets of value to make it worth the Trustee’s efforts to collect and sell them. 
Certain debts cannot be discharged in a Chapter 7 bankruptcy, such as alimony, child support, fraudulent debts, certain taxes, student loans, and certain items charged  (we may be able to answer your Georgia exemptions questions during a free consultation). Usually, large credit card debt and other unsecured bills coupled with few assets typify a Chapter 7 bankruptcy filer. In the vast majority of cases this type of bankruptcy is able to completely eliminate all of the filers debts.

Upon filing your Chapter 7 case, bankruptcy will brings an automatic stop to collection calls, collection law suits, judgments, garnishments, pending car repossessions and even home foreclosures.  This may give you some breathing room.  However, the mortgage company or car creditor may still pursue their rights to take your house or car at a later date if you remain behind on payments.  Still, Chapter 7 bankruptcy may give you the critical time you need to eliminate or renegotiate your debts.

Bankruptcy laws are complex, be sure to speak with an experienced bankruptcy attorney before going forward.  The bankruptcy attorneys at King and King will provide you with a free consultation. Call us today at 404-524-6400


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