Wednesday, April 26, 2017

Three Tips For Financial Success After Filing Bankruptcy In Georgia

Once your bankruptcy has been discharged, you’ll have the chance to start fresh. At King & King, it’s true that we want to help you move forward with your bankruptcy, but we also want to help you set yourself up for future success. Here are three things we recommend you do once your bankruptcy has been discharged.

Have an accurate credit report

Two to three months after your bankruptcy has been discharged, request a new credit report. Make sure that each and every creditor who was discharged reported you with either a closed account or a balance of $0.00. If you see that there are errors, then you’ll need to contact the credit reporting agency in writing. When you do so, be sure to include evidence, like your discharge order.

When the credit agency receives this correspondence, they have 30 days to verify the information with the creditor in question. If the creditor can’t verify that the balance they’re showing is accurate, then the credit agency will remove the reporting. It’s also a good idea to contact the creditor in writing as well.

Rebuild your credit

Many people are surprised to learn that once their bankruptcy is discharged, they’re likely to get post-bankruptcy options from credit card companies. The best way to use these cards to improve your credit is to choose one card, use it for small purchases and repay it in full every month. This can be an effective way to start rebuilding your credit.

If you’re in need of a car, consider getting vehicle financing. Many financial companies will offer you credit even though you’ve just been through a bankruptcy. However, they may charge higher interest rates. To avoid this, you can add a cosigner. Rebuilding your credit can put you in a position to buy a home in as early as two years after filing bankruptcy.

Create a budget

Most people who hire King & King file bankruptcy because they’ve had something unforeseen come up, whether they lost their job, had unexpected medical bills, a death in the family, or some other unforeseen circumstance. Now that those issues are behind them, it’s time to get back on track and live within their means. This means taking into account having savings for emergencies, saving for retirement, and long term goals.

If you’re ready to declare bankruptcy, then we’re ready to hear from you.

When you work with the right bankruptcy attorney, you can trust that they’ll help you through the process from start to finish. That’s exactly what you’ll get with the attorneys at King & King. When you have your free initial consultation, we’ll be honest and upfront about your options and will offer our advice on how you can best move forward. Call us at 404-524-6400 today for more information.

Monday, April 24, 2017

How Does Lien Stripping Work In Georgia?

Filing for bankruptcy has the potential to eliminate many kinds of debts. However, debts secured by a lien are not always included. Chapter 13 bankruptcy can be used to eliminate or reduce different types of liens.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a reorganization bankruptcy. The goal is to take the individual’s debts and restructure them into something more fair and manageable given their income and assets. Naturally, this includes a way to deal with liens.

Under Chapter 13, some liens can be reduced to the value of the collateral to which it attaches. This ensures that worthless liens do not get included in the reorganization plan.

To determine whether a lien can be stripped or crammed down, it is necessary to establish the value of the collateral and order in which the liens were placed. The first liens to be placed are the first to be paid. In the case of a home loan, the value of the collateral matters because you can only strip or cram down “wholly unsecured” liens, aka liens that are not supported by any portion of the value of the property.

Here’s an example of how lien stripping works:
Let’s say you owe $100,000 on a mortgage on a home now worth $90,000, plus an additional $10,000 from a home equity line of credit. There is no collateral securing that additional $10,000 lien because the entire worth of your home is bound up in that first mortgage. This is a perfect example of a lien that could be stripped with Chapter 13.

Lien stripping is a confusing topic. Fortunately, King & King bankruptcy attorneys can help. Calling us at 404-524-6400 for a free consultation is simply the easiest way to make sure you arrive at a correct understanding of the options available to you in your bankruptcy. 

Thursday, April 20, 2017

Four Options For Eliminating Credit Card Debt In Georgia.

Credit card debt can quickly become overwhelming. Fortunately, you don’t have to live with credit card debt forever. King & King can help you eliminate your debts and put you on a path to a brighter financial future.  Here are a few strategies for climbing out of credit card debt.

Make a Budget

If your credit card debt is growing but not yet overwhelming, and you have a steady income that is adequate to your needs, you may be able to get out of debt by creating a budget. Put a larger amount of your income towards your credit card balance until the card is paid off. For this strategy to work, put a hold on making any new purchases on your cards.

Consolidate Your Cards

If you have good credit, you may be able to sign up for a new card that offers 0% interest for an introductory period. Transferring your existing balances to such a card can be an excellent strategy for cutting down your credit card debt. If you can’t open a new card with a 0% interest rate, consider consolidating as much of your debts as possible onto whichever card has the lowest interest rate. This will enable you to reduce the rate at which your debt will grow while you attempt to repay it.

Work Out a Debt Settlement

If your credit card debt has already gone into collections, you can consider working out a debt settlement with the collection agency. If you can repay 50 percent of the balance within a year or two, the collection agency may accept your offer.

File Chapter 7 Bankruptcy

Chapter 7 bankruptcy will completely wipe out your unsecured debts including credit card debts and stop creditors from contacting you. You can typically complete a Chapter 7 bankruptcy without liquefying your personal assets. If you decide to pursue bankruptcy, be sure to hire a bankruptcy attorney to help you.

If you’re tired of living with debt, if you feel like there’s no way out but you need help, then today is the day to call King & King at 404-524-6400 for a free consultation. We are experts in helping people just like you find the best way to move forward from being overwhelmed with debt.