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Bankruptcy

Read up on bankruptcy topics in our blog.

Is Debt Consolidation Right for You?

There are many reasons why people are struggling with debt and seek options that will help them get out of it. Your Marietta Debt Consolidation attorney Matthew Cherney can help lower and pay off any current unsecured debts that you have. If you are looking for a way to get out of debt, debt consolidation may be the best option.

Reasons Behind Debt

You will need to figure out when you started accumulating debts so that a solution can be found. There are several reasons why people experience debt such as:

  • Unemployment
  • Emergencies
  • Medical bills
  • Student loans
  • Auto loans/Repossession
  • Overdue mortgages/Foreclosure
  •  Bankruptcy
  • Among many other reasons

The best thing to do while going through the process of debt consolidation loan is to make a budget plan so that your bills and creditors will be paid on time. It is also important to remember that you should not spend more than what is within your means.

What is Debt Consolidation?

One of the first things to understand is knowing what debt consolidation is and learning how it will help to clear your debts. Debt consolidation is a legal opportunity that allows debts to be lowered, grouped together, and paid with a consolidation loan. You will be able to pay off debts by paying a fixed amount every month until your credit is cleared. Debt consolidation is an option that is open to everyone, and this even includes those with secured debt with collateral or unsecured debt.

Applying for Debt Consolidation

Having the option to pay off accumulated debt by applying for a loan can seem easy at first, but not everyone is eligible. Lenders require a certain credit score before they will approve an application. A low credit score is considered a risk to lenders, so there is a chance you may not be approved. The higher your credit score is, the more likely a consolidation lender will approve your application.

Another factor that is considered by lenders is the total amount of debt you have. If your debt is too low and does not reach the minimum threshold for a consolidation loan, a lender is less likely to approve the loan. A debt consolidation lender will also consider the amount of the loan to be paid back, monthly fees, and how long it will take for you to pay back the loan.

How does Debt Consolidation work? 

It is important to keep in mind that a debt consolidation loan can help relieve debt, but it is not an overall solution. You will still have to pay back the loan through a debt consolidation lender in addition to paying any recurring monthly bills such as a mortgage, rent, electricity, water, or cable bills. It is necessary to know if you can afford to pay off the loan and still live fairly comfortably; you should not have to struggle unbearably while paying off your debts.

Debt consolidation can be a perfect option if you are well organized and can follow a budget plan that will help avoid overspending. This alternative solution to clear your debt should be considered as a temporary aid. It is designed to provide a better start for managing your financial difficulties.

Making A Budget Plan

Having a budget plan will help keep financial transactions well organized so that creditors will be paid on time. It is also a good idea to consult a professional financial lawyer or advisor for help. An attorney can help you devise an effective plan to remove debts as quickly as possible.

By assessing all of your spending habits, it will be much easier to determine the crucial spending necessities. Once a spending pattern has been observed, a financial plan can be made so that you can pay off the consolidation loan as soon as possible.

Learn More About Debt Consolidation

By understanding what debt consolidation is and how it works, the better the chances to get out of debt. It is not a good idea to wait until you are almost bankrupt to apply for a consolidation loan, but instead, identify the problem at an earlier stage where debts are more manageable. Take the time to decide if this type of loan is right for you and consult a professional Marietta debt consolidation attorney to find out what steps you need to take to start your path towards financial recovery.

Top Reasons Why You Should Consider Bankruptcy

Whether you’re upside down in debt because of being unemployed, too much spending, medical bills, college tuition or anything else, you should know that you’re not alone!

Last year, almost 773,000 individuals found themselves in the same situation.

You at one point or another might have considered filing for bankruptcy.  Bankruptcy can help those in financial distress get a fresh start and start over again.

Does Bankruptcy Really Work and is it the Right Fit for You?  Here is what you need to know

When is a Good Time to Consider Bankruptcy?

Anytime your income is insufficient to pay your debt while also maintaining your household expenses, bankruptcy is an option worth looking into. Matthew C. Cherney, a bankruptcy attorney, says that a good rule of thumb is to take a good look at the total amount of debt that you owe.  If the monthly expenses associated with servicing the debt comes close to, or exceeds your monthly income, then you may be an ideal candidate for filing for bankruptcy.

Some debts such as child support, income taxes and student loans cannot be discharged in bankruptcy, so one should really consider monthly figure as an expense, rather than a debt.

In Georgia and other states, the bankruptcy laws require many different forms and schedules to be filed with a bankruptcy .  These forms also depend on the chapter of bankruptcy.  Some of these forms are Chapter 7 and Chapter 13.  Let’s explore these in detail.

Chapter 7 Bankruptcy

Chapter 7 is commonly referred to as a “liquidation” bankruptcy.  Chapter 7 is oftentimes associated with what people think of when they think of bankruptcy.  A business bankruptcy would be a Chapter 11.

After your bankruptcy attorney files your paperwork, the judge will appoint a “trustee.”  The trustee’s job  is to investigate your financial affairs search for any assets, and, if appropriate, sell, or liquidate these assets, and pay any monies to your creditors.

You are allowed certain exemptions to protect your property, and this situation only becomes relevant when the value of your assets exceed your exemptions.  If that is the case, you may want to consider a chapter 13 bankruptcy in order to protect your assets.

Did you know?

Abraham Lincoln filed for bankruptcy in 1838.  Prior to the Civil War, Abraham Lincoln had considerable debt associated with the purchase of several general stores.

Chapter 13 Bankruptcy

If you do not qualify for chapter 7, or are attempting to protect your assets and have regular income, chapter 13 may be a better solution for you.  In chapter 13 one can propose a plan to pay back their debt (or a portion thereof) over three to five years.

Another benefit is that Chapter 13 can treat certain debts that are not dischargeable in chapter 7.

What is the Immediate Benefit of Bankruptcy?

The one thing that ALL forms of bankruptcy have in common is the wonderful feature known as the “Automatic Stay.”

Immediately upon filing bankruptcy,  the automatic stay prevents most creditors from collecting any outstanding debts.

This means:

  • No more lawsuits;
  • No more harassing phone calls;
  • No more “Final Demand” letters sent to your home;

Instantly all of these things that keep you up at night, as well as any outstanding debt- are all washed away, or “discharged,” in legal terms.

Read more about Automatic Stay

What is the Negative Impact of Filing for Bankruptcy?

After filing, your credit score will be impacted.  However, if your credit score is already rather low, the impact will be nominal.  Bankruptcy will remain on your credit report for a period of years (depending on the chapter); however, this time frame may pale in comparison to the length of time necessary to pay back your debt.  You will also be surprised at the amount of credit card offers you’ll receive after your bankruptcy is discharged.  When used responsibly, a credit card is an excellent way of building your credit back up.

So is Filing For Bankruptcy a Good Thing?

The thought of bankruptcy may be unpleasant, but you will not believe the relief you feel after filing.  Filing with a trusting attorney should make it a pleasant experience.  Nobody ever wants to end up filing bankruptcy, but it can be a better alternative to harassing phone calls, intrusive letters, lawsuits and garnishments.

If you or someone you know is going through hardships due to outstanding debt, give our office a call today and speak with attorney Matthew Cherney of Cherney Law Firm, LLC.

Vehicle Repossession and Chapter 13 Bankruptcy

One reason for the overwhelming increase in vehicle repossessions is the rise of sub-prime vehicle loans. Sub-prime borrowers account for nearly 1/3 of the new car loans. Sub-prime borrowers are sure to be saddled with the highest interest rates (15% – 20%), and the longest loan terms (60 months – 72 months). Inability to maintain payments may result in repossession. A chapter 13 bankruptcy will stop a repossession, and allow the borrower an opportunity to pay the loan back over a period of 3-5 years, oftentimes at a significantly reduced interest rate.

Is Fear Holding You Back from Filing for Bankruptcy?

People often hold out for a hopeful solution, even while their debt is mounting fast. They cling to other solutions besides bankruptcy- getting a raise, selling their house, and so forth. Why is bankruptcy the “worst case scenario” and something that causes individuals to drag their feet in trepidation? Continue Reading

Keeping Your Home in Bankruptcy

Depending on your income and debts, bankruptcy can actually help you stay in your home. While saving your house is possible with Chapter 7 bankruptcy, Chapter 13 (also known as reorganization bankruptcy) is normally a more advisable option when faced with foreclosure. How can you know which is right for you? Continue Reading

Do I Qualify for Bankruptcy? Which Chapter?

The first question for many people considering bankruptcy is “do I qualify?” In order to determine whether you qualify for bankruptcy, you should consult with a Marietta bankruptcy attorney. As a general rule, almost everyone qualifies for bankruptcy. Find out more about qualifying for bankruptcy here. The real question is, “What Bankruptcy is Right for Me?” Continue Reading

Is Filing for Bankruptcy Going to Hurt My Credit?

Usually, those who are filing for bankruptcy already have a bad credit score because they have been unable to pay their debts. Filing for bankruptcy can help those who need to get their debts discharged and get a fresh start on life. Most find that their credit scores begin to improve after they have filed because they are able to pay off their newly decreased debt, rather than watching it continue to accrue. Continue Reading

Roswell Bankruptcy: Discharging Debt in Chapter 7

The federal bankruptcy laws allow certain debts to be discharged. If you receive a discharge, you will no longer be legally obligated to pay back that debt. Certain debts cannot be discharged. These include child support, spousal support and most income taxes. Generally speaking, debts that can be discharged are unsecured debts, such as medical bills, credit card bills and personal loans. Continue Reading

Bankruptcy Discharge: What You Should Know

What is a bankruptcy discharge? A bankruptcy discharge is a court order that legally extinguishes your responsibility to pay back your debt. While the discharge may eliminate your responsibility to pay back most debts, not all debts can be discharged in a bankruptcy proceeding. Continue Reading

Cherney Law Firm: Who We Are

Bankruptcy is often a taboo subject and a scary endeavor. If you are in a tough financial situation, you may think that bankruptcy is your only option. Whether you are still making money and simply need to organize your debt into a payment plan in order to satisfy creditors, or need to liquidate all of your assets to satisfy debt, an attorney from the Cherney Law Firm LLC can help. The caring and compassionate attorney at this Marietta Bankruptcy Firm understands that you are going through a difficult ordeal at present. Maybe you are devastated by the possibility of declaring bankruptcy. When you are in an emotional state, you need a reliable lawyer there to help. The Cherney Law Firm can provide you with a solid and committed attorney who can give you advice, organize your paperwork, deal with the legal implications of bankruptcy, and make sure that they entire process runs smoothly. Continue Reading

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