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Archive for June, 2020

Why Bankruptcy Exists

Why Bankruptcy Exists

Estimated Reading Time: 3 min

Although bankruptcy has been in existence for 100 years, few understand its true purpose. Creditors owed money may balk and question why bankruptcy exists. As someone considering filing bankruptcy, the reason may be all too apparent.

Why Bankruptcy

The current bankruptcy code was enacted in 1978 as part of the Bankruptcy Reform Act of 1978. This code was a well overdue override of previous bankruptcy codes including the Chandler Act of 1938 and Bankruptcy Act in America from 1898.

No one wants to file bankruptcy. Nevertheless, personal financial obligations can all-consuming. After exhausting other options, bankruptcy can feel like a breath of fresh air.

The benefits and reasons for the existence of bankruptcy are two-fold.

Bankruptcy, first and foremost provides you with a fresh start. In fact, numerous bankruptcy code cases refer to the “fresh start” policy as “the essence of modern bankruptcy law” and one of its “primary purposes”.

While bankruptcy provides hope for the debtor, it additionally provides payment and protection to creditors.

Types of Bankruptcy

Before discussing the types of bankruptcy for individuals, it is important to clarify what debts can and cannot be cleared through the process.

Filing for bankruptcy protection can stop foreclosure on your home and repossession of property. Additionally, it can cancel many of your debts.

Therefore, not all debts can be cleared through bankruptcy. Student loans, taxes, and child support must still be paid after filing for bankruptcy protection.

Chapter 13

The majority of individuals looking for a “fresh start” do so by filing for bankruptcy under Chapter 13. This allows them to repay a portion of the debt over three to five years. The remainder of the debt is discharged.

Chapter 7

In extreme situations, a debtor may file Chapter 7 bankruptcy. This may be a viable option for people with excessive debts who are incapable of making payments at all. For example, Chapter 7 may be applicable as a result of lost income or due to the overwhelming nature of  debts.


When discussing why bankruptcy exists, it is important to address creditors.

Bankruptcy laws provide equal treatment of creditors in the same classification. For example, creditors are classified as Secured, Priority, and General Unsecured. The trustee managing the bankruptcy must equally distribute money to all creditors in the same classification.

Secured Claims

  • Debts that are secured by an interest in property (called collateral).
  • A secured creditor can repossess collateral if debt is not paid
  • Common secured claims include mortgage and vehicle loans
  • If you surrender the collateral, debt is reclassified as general unsecured debt)


  • Includes child support, spousal support, and any other domestic support obligations.
  • Bankruptcy does not erase priority debts

General Unsecured

  • Includes credit card debts, personal loans, some utilities, and medical bills.
  • Lowest priority of all claims
  • Generally dischargeable.

When considering bankruptcy, remember that it exists for the creditor and debtor.

Just as debt collectors have rights in the bankruptcy process, you have rights too. The office of  Cherney Law Firm LLC is committed to defending your rights and seeking immediate protection under  Chapter 7 or Chapter 13 bankruptcy.  If you desire a free and confidential consultation in Cobb County to discuss how bankruptcy can benefit you, contact 770.485.4141 to schedule an appointment.

Cooling and Winter LLC

 Cooling and Winter, LLC – Stop Wage Garnishment and Lawsuits

Matthew Cherney of Cherney Law Firm can stop Wage garnishments from Cooling and Winter LLC

Matthew J Cherney of Cherney Law Firm can stop bank and wage garnishments from law firms like Cooling and Winter, LLC

Who is Cooling and Winter, LLC ?

Cooling & Winter is a law firm that represents debt collectors and they are located in Georgia. When a creditor is having trouble collecting from it’s debtors, they will often-times use the services of law firms like Cooling & Winter. These creditors are usually credit card companies like Capital one or Bank Of America, but they can also be debt collection companies and student loan buyers.  It is important to note that most of the time, the creditor seeking their services has made several attempts to collect their debt from the debtor and has not been successful.

Can Cooling and Winter Garnish my Wages?

As a debtor, you need to understand that once a creditor retains a law firm like Cooling and Winter, they have every intention on getting a court ordered judgment to collect that debt. At this point, Cooling and Winter can and will ask the court for a judgment to garnish your bank account or your wages. If they intend to garnish your wages, they will notify your employer and your employer is legally required to take up to 25% of your wages each pay period. By garnishing your bank account, they will now legally be able to take what is owed to them directly from your checking or savings account.

Why is Cooling and Winter Calling Me?

If you have come to this website, you most likely have been getting calls or letters from Cooling and Winter, LLC. These calls and letters are very stressful because they are either threatening to sue, in the process of suing you or have already sued you and won.

Can I win a Lawsuit From Cooling and Winter?

A majority of the time, Cooling and Winter will win their lawsuit vs the debtor because the debtor never appears in court. This is an easy win for them. Once the court grants the judgment in favor of Cooling and Winter, there is little the debtor can do. At this point there will be a judgment that will appear on your credit report for the next 7 years and Cooling & Winter will most likely pursue with garnishment.


Cooling and Winter Contact Information:

Cooling and Winter, LLC main office is located in Marietta, Georgia. Close to Atlanta, Georgia

Main Office:

1090 Northchase Parkway SE, Suite 300
Marietta, GA 30067

Phone Number:  770.988.9055

Toll Free:  800.291.5144

cooling and winter is debt collection law firm in georgia



How can I stop Cooling and Winter from Wage or Bank Garnishment Against me?

First and foremost, Cherney Law Firm would like to point out that a debt collector has every right to try and collect a debt that is owed to them. We do not advocate any sort of promotion of not paying a creditor that is rightfully owed a debt.

With that being said, we also understand that there is a bigger picture that may need to be addressed. Most of the time when one of our clients that contact us about about a wage garnishment that they have received from law firms like Cooling and Winter, also have other recurring debt problems also. A majority of the time it is at no fault of our client that this has happened.

We understand that bad things happen to good people. Sometimes it is a job loss, or it can be that you simply do not make enough money to pay your bills and have enough money left over for other things that you and your family need.

If you contact our office, a wage garnishment attorney will be able to stop the wage garnishment immediately. We can also help you get your life on track by eliminating all of your debt or getting you into a payment plan that can save you from foreclosure or car repossession.


Cooling and Winter, LLC FAQs

Can Cooling and Winter legally garnish my wages

When Cooling and Winter files a judgment in the court to collect debt and the judge awards them the judgment, they can and will legally garnish your wages. This can be up to 25%

Can Cooling and Winter garnish my bank account?

In some states, If Cooling and Winter wins a judgment against you in the court of law, they can garnish your checking or savings account for the the full amount of money owed to them.

Why is Cooling and Winter Suing me?

Cooling and Winter is a debt collection law firm. If you received notice that they are filing a judgment against you, it is most likely that they are representing a debt collector that you owe a debt to. If they are successful and win the judgment against you, they may now legally be able (in some states) to garnish your bank account or wages to collect that debt from you.

Does Cooling and Winter collect for Capital One?

Cooling and Winter LLC is a debt collection law firm that represents many lenders, banks and credit card companies. Capital One is one of them

Does Cooling and Winter collect for Bank Of America

Cooling and Winter LLC is a debt collection law firm that represents many lenders, banks and credit card companies. Bank of America is one of them










Bankruptcy Impact on Inheritance

Estimated reading time: 3 minutes

The decision to file for bankruptcy is complex.


Filing for Chapter 7 or Chapter 13 bankruptcy can provide a “fresh start”. Nevertheless, the process isn’t easy. Losing a loved one during that time can add to the difficulty. As a result, you should know the impact inheritance has on your bankruptcy case.

180-Day Rule

Any income, including payroll,  you receive within 180 days of filing for bankruptcy becomes part of the bankruptcy estate. Thus, any inheritance you actually receive within that 180 days becomes part of the bankruptcy estate.

Inheritance consists of more than financial payments. For example, if a will entitles you to property, that property is part of the bankruptcy estate.

While it may be tempting to wait 180 days to physically take possession of the inheritance income or property, however it won’t help. In fact, the bankruptcy law of 180 days abides by the date you became entitled to the inheritance.


If a loved one passes away and leaves you an inheritance of money or property within 180 days of filing for Chapter 7 or 13 bankruptcy, you must notify the bankruptcy trustee.

Contact your bankruptcy attorney to determine how and when to notify the bankruptcy trustee. Furthermore, amendments need to be made bankruptcy forms.  Cherney Law can determine the forms based on the type of inheritance such as money or property.

Inheritance as Part of the Bankruptcy Estate

Keeping an inheritance, similar to your other assets, when filing for Chapter 7 or 13 bankruptcy is dependent upon state bankruptcy exemptions.

Bankruptcy exemptions are types and amounts of property you can keep. In Georgia, you may keep a portion of home equity, life insurance proceeds, household items, and tradesman tools. Additionally, you can file an exemption for $5,000 of value in motor vehicles and $500 of value in jewelry. Georgia does not allow for Federal bankruptcy examples..

If your inheritance is not covered by a Georgia bankruptcy exemption, then the asset must be liquidated or sold for cash. In Chapter 7 bankruptcy, proceeds from liquidated assets are paid to creditors. Conversely, non-exempt inheritance assets are used for payment plan calculations in Chapter 13 bankruptcy.

Inheritance 181 Days After Filing

In Chapter 7 bankruptcy, if your loved one passed away more than 180 days after filing, entire inheritance is yours. Notification to a bankruptcy trustees or creditors is not required. Inheritance, regardless of date, is a factor in Chapter 13 bankruptcy. For this reason, non-exempt inheritance can be used to calculate your three- or five-year payment plan.

Spouse Receives an Inheritance

If you filed for bankruptcy apart from your spouse, then inheritance owed to them is NOT part of your bankruptcy estate. To this end, it is vital that your spouse keep the inheritance separate from marital assets. For example, if  a monetary inheritance is deposited into a joint checking account, the funds are then part of your assets and can be used to pay creditors.

Call us Today to Discuss your Inheritance

If you are expecting or recently an inheritance, you need to speak with an attorney about bankruptcy and inheritance. Cherney Law Firm LLC is an experienced Marietta-area bankruptcy firm. Contact 770.485.4141 to schedule a free consultation.