Thinking about bankruptcy? The bankruptcy lawyers at King and King LLC in Atlanta, Georgia can help. Call 404-524-6400 for a free bankruptcy consultation.
What Will Happen To
My Social Security Income If I Declare Bankruptcy?
The good news is Social Security retirement benefits are
protected in bankruptcy.
The most
commonly used protection for benefits is the fact that social security income
is excluded from income available to repay creditors. This means it does not
count in the means test for chapter 7 eligibility, and is not considered as
income used to determine the amount to repay unsecured creditors in a chapter
13 bankruptcy.
If you are considering
filing for bankruptcy you need to speak to a professional. Call the bankruptcy
attorneys of King and King in Atlanta, Georgia for a free consultation.
404-524-6400
If your home has lost value during the housing market downturn in Georgia or the Atlanta area and you have more than one mortgage, you have options. In some instances, it may be possible to "strip" your second mortgage. This means it is possible to eliminate your second mortgage or equity line of credit and never have to pay it back. You do not even need to be behind on your mortgages to qualify for this amazing opportunity. Watch our lien stripping video below for more information.
To find out if you are eligible to strip off your second mortgage, schedule a free initial consultation. From our offices in Atlanta, Marietta, and Lawrenceville, we help people throughout all of Northern Georgia.
404-524-6400
Thinking About Bankruptcy? Here Are Three Mistakes To Avoid.
King and King Bankruptcy Attorneys, 7/1/13
One of the largest mistakes that people make is not
considering filing for bankruptcy. Bankruptcy is an extremely helpful tool that
can change your life for the better. At King & King, we want you to be
prepared before, during, and after your bankruptcy.
The three most common pre-bankruptcy mistakes to avoid are
as follows:
1. Providing inaccurate information about your
income.
An honest disclosure
of income is important to the Bankruptcy Court. To be successful, your bankruptcy needs to
start with an accurate disclosure of income.
Be honest with your lawyer; always provide accurate answers to any
questions asked of you. Only by doing
this can your bankruptcy lawyer provide the protection you need. Failure to do this may cause suspicion by the
Bankruptcy Court, the Bankruptcy Trustee, or your creditors and could end your
bankruptcy case before it has a chance to succeed.
2. Large expenditure of cash or adding debt
right before filing.
It’s understood that there
are ordinary, daily expenditures and charges that everyone needs to make. If you move money out of your bank account,
make a large purchase, or run up credit card debt right before you file, the Bankruptcy
Court may become suspicious. If you do
need to make a big expenditure, be prepared to explain it.
3. Transfers of property or money to friends and
relatives.
There’s a 90-day review
period pre-bankruptcy where transfer of assets to other people or organizations
can cause a problem in Court. Also, any sizeable
transfers made to any relatives or friends in the previous year could also be
reviewed, and if the court chooses, the transactions may be reversed. Transfers of real property within two years
of filing may be subject to scrutiny if cash was received.
When you talk to your Georgia bankruptcy lawyer before
filing, make sure to mention anything in any of the above categories. This will enable your bankruptcy lawyer to
best help you and maximize protection for your assets. We know how complex
bankruptcy can be. If you have questions or are ready to move forward call us
at 404-524-6400 for a free consultation today.
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.
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 http://www.myfico.com 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.
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.
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
