Considering Bankruptcy? This Is What You Should Know.

Filing for bankruptcy is a serious decision. Our attorneys at King & King understand that and are here to help. We will present you all your options and help you decide which bankruptcy will work best for you. Here are some common reasons why someone may consider filing for bankruptcy:

1. Overwhelming debt: If your debts are so high that you cannot realistically see a way to repay them, even if you were to stop using your credit cards and tighten your budget, bankruptcy may be a good option.

2. Constant harassment from creditors: If you are being constantly pursued by creditors or debt collectors, bankruptcy can help provide relief from this harassment.

3. Threat of wage garnishment or property seizure: If your creditors have obtained a court judgment against you and are threatening to garnish your wages or seize your property, bankruptcy can help protect these assets.

4. Unexpected life events: If you have suffered a significant setback such as a job loss, medical emergency, or divorce, bankruptcy may be a good option if you cannot manage your debts.

What Type Of Bankruptcy Is Right For You?

Chapter 7 bankruptcy is often referred to as a "liquidation" bankruptcy, as it involves selling certain assets to pay off debts. Chapter 7 is typically best suited for individuals with few assets and a large amount of unsecured debt, such as credit card debt or medical bills.

If you are considering Chapter 7 bankruptcy, here are some factors to keep in mind:

1. Eligibility: You must pass a means test to determine if you are eligible to file for Chapter 7 bankruptcy. This test compares your income to the median income in your state and considers your expenses and debts.

2. Exemptions: Some assets, such as your home, vehicle, and personal belongings, may be protected under state and federal exemptions.

3. Timing: The process of Chapter 7 bankruptcy typically takes about 4-6 months from start to finish.

Here are some factors to consider if you are thinking about Chapter 13 bankruptcy:

1. Eligibility: To be eligible for Chapter 13 bankruptcy, you must have a regular income and your debt must fall within certain limits.

2. Repayment plan: In Chapter 13 bankruptcy, you will propose a repayment plan to repay a portion of your debts over a three-to-five-year period. This plan must be approved by the bankruptcy court.

3. Protection of assets: Chapter 13 bankruptcy allows you to keep your assets, such as your home and vehicle, as long as you make the payments required under your repayment plan.

4. Timing: The process of Chapter 13 bankruptcy typically takes three to five years from start to finish.

If you are considering bankruptcy, call the bankruptcy attorneys at King & King who can evaluate your specific financial situation and help you determine the right option for you. Call Today at 404-524-6400.

 

 

What Happens After My Bankruptcy Discharge?

Here are a few tips for after your Atlanta bankruptcy attorney has completed your case and your debt has been discharged.

 

1. Review Your Credit Report

After two months your creditors should have made any necessary updates your credit report.  This is the perfect time for you to make sure that all your debt shows that it has been discharged via bankruptcy.  You should not expect to see any past due accounts.  If you do see any debt that shows you are late or missing payments you should dispute the item on your credit report and contact the creditor to make sure that they will report your account properly going forward. 

 

2. Rebuild Your Credit

Once you receive a discharge, you should consider opening a secured credit card and start establishing a payment history.  We frequently have clients who can rebuild their credit scores to 700 within a year or two after their bankruptcy case and move on to purchase homes.  Be diligent about rebuilding your credit after bankruptcy, you can bounce back quicker than you expected.

 

3. Don’t Be Afraid To Answer Your Phone

It is possible a creditor may not be aware that you filed bankruptcy.  If you get a call trying to collect a debt after your bankruptcy is finished make sure to inform them of your bankruptcy case.  In nearly all cases, you informing them of your concluded bankruptcy case will  stop all calls. Your bankruptcy attorney will have informed you of any non-dischargeable debt in bankruptcy such as child support, spousal support, taxes, student loans, and fines. You must keep paying any non-dischargeable debt. 

 

4. Enjoy Your Financial Freedom.

Enjoy the fresh start you have given yourself. You made a smart financial decision for your future.  Now that you have experience you can avoid previous pitfalls. However sometimes things happen in life and  turning to a real solution like bankruptcy can be the right choice.

 

If you need help our Atlanta bankruptcy attorneys know what you’re going through. Call King & King at 404-524-6400 today to schedule a free consultation.