Get out from under crushing debt with help from an Austell bankruptcy attorney
More and more individuals and families throughout Georgia are struggling to make ends meet. The economy has been hard on everyone the past few years, and it is no surprise that many people are having difficulty repaying loans, making mortgage payments on time, and reducing their debt. For many, the task is simply impossible. If you have defaulted on your loans or if you are facing foreclosure, it may be in your best interest to declare bankruptcy. There is a lot of misinformation about bankruptcy. You may be wondering if you will have to liquidate your assets, or how your credit will be affected. Your best option is to contact an Austell bankruptcy attorney to discuss your situation in detail.
When you are facing debts that you cannot pay, you and your lawyer will decide which type of bankruptcy is in your best interest. The first step is to take the means test, which will make a calculation based on your income, debts, and assets. If you pass the means test, then you are able to file for Chapter 7 bankruptcy, which eliminates all of your eligible debts. With Chapter 7, however, you will be required to liquidate all non-exempt personal property. Most filers are able to keep their home, car, furnishings, clothing, and work items. This type of bankruptcy is generally recommended to individuals and families who do not have significant assets or a steady income.
For those who do not qualify for Chapter 7, Chapter 13 bankruptcy is an option. With Chapter 13, instead of eliminating your debts, you restructure them. It is common for people who file Chapter 13 bankruptcy to repay around 60% of their debts through a repayment plan. The plan will allow lower payments that will repay your remaining debts over a period of three to five years. This type of bankruptcy does not require any liquidation, nor do you have to pass the means test. It is generally recommended for families and individuals who have a large amount of personal property and a steady income. Often, people who are behind on their mortgage payments will file for Chapter 13 in order to give themselves more time to stave off foreclosure.
It is important to note the types of loans that do not qualify to be discharged under bankruptcy filings. Student loans, unpaid taxes, and child support are among them. Similarly, secured loans, such as car loans, are still subject to repossession if you do not pay them on time. Bankruptcy may still help with these loans, as it will free up your finances from certain debts so that you can concentrate on paying others. For more information about the differences between Chapter 7 and Chapter 13 bankruptcy and how they will affect you, contact Cherney Law Firm, LLC.
In some situations, you may not need to file for bankruptcy at all. Debt negotiation is a viable choice for many who are having difficulty paying their debts. When people declare bankruptcy, the creditors do not get their full loan back. This makes many lenders open to various forms of debt settlement. You may be able to negotiate for a reduced principle, a lower interest rate, a longer repayment term, or a waiver of late fees. This could mean the difference between being able to pay your bills and defaulting.
I founded Cherney Law Firm in 2006. Since then, I have helped thousands of men and women in Austell and throughout Georgia attain debt relief. I know that this is an immensely stressful time and that you have a lot of questions. I offer personal, attentive, and caring guidance for each and every client. Whether you need to take off some of the financial strain or achieve a fresh start, I can help. If you are the subject of unlawful creditor harassment, I can take your case to court and fight for your rights.
Life after bankruptcy is not as different as you may be expecting. For many, the only thing that changes is that they have fewer bills to pay. Although your credit will take a hit, in the long run it is substantially better to declare bankruptcy or settle your debts now then to keep defaulting on your loans, paying late fees and accruing more interest. Once you have a new beginning, you’ll find that it is easier to organize your finances and stay on track with new loans while you rebuild your credit. Other benefits of bankruptcy include answering the phone without worrying it is a collection agency and overall decreased stress. Discharging your debt may make you feel as if you have a new lease on life. Call my office today to set up a free case consultation! You have nothing to lose but your debt!