What is a Trustee? What is Their Role in Bankruptcy? Atlanta Bankruptcy Attorneys King and King Explain.

What Role Does the Bankruptcy Trustee Play?

When you file for bankruptcy in Atlanta, you are assigned a trustee. This trustee is automatically assigned to you based on where you live. Basically, the trustee controls the process of the bankruptcy from start to finish. They look for assets to help repay creditors and make decisions in your case. You should know your rights and how this relationship works in regards to your bankruptcy plan. Watch the video now to learn more.

What Does a Chapter 7 or chapter 13 Bankruptcy Trustee Do?

The bankruptcy trustee is a private business person who may or may not be an attorney. He or she is charged with upholding the Bankruptcy Code and collecting as much money for the estate as possible. He or she works in the interest of creditors. According to the federal guidelines, the bankruptcy trustee gets a percentage of whatever is collected on behalf of creditors. Therefore, some financial incentive for the trustee involves ensuring that you are disclosing everything properly.

How Does the Trustee Meeting Work?

The purpose of this meeting is to verify the information in the bankruptcy petition, you are expected to bring all of your documentation, this meeting is generally a short one.

The trustee meeting commonly raises questions, contact us for a free consultation.

For more information about bankruptcy law and our firm, visit us at http://www.kingandkingattorneys.com, where you can view our information about chapter 7, and chapter 13 bankruptcy. If you have legal questions, call us at (404) 524-6400 for a free consultation.

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Chapter 13 Bankruptcy Can Give You a New Start.

Chapter 13 bankruptcy can put an immediate stop to foreclosure, repossession and creditor harassment. Unfortunately, many Chapter 13 repayment plans are rejected by the court because they are not realistic or properly prepared, leaving debtors without the help they need.

King and King Bankruptcy attorneys have a very high success rate with Chapter 13 confirmations, and have handled thousands of bankruptcy cases. Unlike many high-volume bankruptcy firms that farm out their Chapter 13 cases, we personally prepare every petition. We know there is no substitute for individualized attention and years of experience.

Chapter 13 is also known as a "repayment plan." It consolidates debts into one convenient payment to a bankruptcy trustee, who distributes the money to your creditors. The plan lasts for three to five years, unless your debts are fully repaid in less time. At the end of the plan, any amounts still owing on your unsecured debts are forgiven.

The amount of the payment and the length of the plan are based on a few factors including your monthly take-home pay, your excess income after monthly expenses, and unsecured debts (credit cards, medical bills, personal loans) may be paid as little as zero percent, depending on your finances. Other debts not dischargeable in bankruptcy, such as some student loans, must continue to be paid.

What can a chapter 13 bankruptcy plan do for you?

Stopping home foreclosure

Preventing repossession or getting a repossessed vehicle back

Stopping wage garnishment

Protecting assets not exempt under Chapter 7

Paying off property tax or income tax arrears

In most cases you can keep all of your property.

You can catch up on delinquent mortgage payments.

You can restructure auto loans.

You are protected from creditor harassment.

An added feature of chapter 13 bankruptcy is Lien stripping — You may be able to eliminate a second mortgage on your home. Lien stripping allows you to eliminate secondary mortgage if you owe more on your home than it is worth.

Call King and King Bankruptcy Attorneys to set up a free consultation with an experienced Atlanta, Georgia Chapter 13 bankruptcy attorney. 404-524-6400

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Social Security Income and Bankruptcy

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

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Lien Stripping, How We Can Remove Your Second Mortgage Legally.

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

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Three Bankruptcy Mistakes to Avoid.

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.

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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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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 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. 

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