Explaining how bankruptcy can bring debt relief is one way we help our clients regain control of their lives. In this article we tell you how bankruptcy works and how it can help give you a fresh start.
Bankruptcy in Georgia is designed to help those who can’t pay their debts get into a better financial position. There are a number of options—with Chapter 7 and Chapter 13 used most commonly. Both options will give you a fresh start as you put your debts behind you.
Living under the pressure of mounting debt takes its toll. We cringe when the phone rings, fearful it will be another creditor threatening service cutoffs, foreclosure, repossession, or wage garnishment. If only people understood there’s nothing to be afraid of in pursuing bankruptcy—in fact it was designed for situations just like these. You can start fresh today, with a plan that will put you back on your feet.
Curious? Read on to learn more about the process, or you can reach out right now. We’ve helped many people like you emerge from crippling debt into a brighter financial future.
What kinds of bankruptcy are there?
There are several kinds of bankruptcy available for financial help. The most common types used by individuals are Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy allows you to get rid of excess debt. This includes ridding yourself of outstanding medical bills, unpaid personal loans, credit card debt, utility bills, tax debt, and other unsecured debt. Chapter 7 can include some liquidation of any assets you might have, but not necessarily. Also, some assets you own are free from liquidation. Your debt is forgiven in this type of bankruptcy.
Chapter 13 Bankruptcy allows you to pay back a reasonable amount of your debt, during a 3 – 5 year period of time. You pay a lesser percentage of outstanding debt, and the court reorganizes your payments so that they are manageable. Many people worry that their personal property, home, vehicles, or other assets will be affected, but using Chapter 13, they are not included.
An experienced lawyer can help you determine which is the best option for your particular situation. We have guided several clients through the decision process, and helped navigate them through the fresh start you may be seeking through bankruptcy.
What are the benefits of filing bankruptcy?
Have you found yourself behind on car payments? Do you have mortgage payments that are unpaid? Have you been hit with unexpected medical expenses? Is there some equity in your home, but it doesn’t seem like enough to solve your financial responsibilities? Considering bankruptcy could be the answer to these difficult financial situations.
There are many benefits to starting fresh with a bankruptcy. You can expect to:
- Reduce your stress as your financial future brightens
- Stop receiving discouraging debt collection phone calls
- Save your home from foreclosure or your property from repossession
- Ensure you’re able to provide for your family
- Develop habits that will give you the best chance for a bright financial future
Bankruptcy provides relief from emotional stress.
The pressures that lead a person to consider bankruptcy are real—and they often start years before the decision is finally made. The stress of fighting a losing battle to stay ahead of creditors can mess with your relationships, your health, and your sense of well-being.
Most people experience an immediate sense of relief knowing they’ll finally have enough money to make ends meet. With increased peace of mind, breathing room, and time to undo some of the harmful effects of long-term financial stress, you can begin to see a brighter future.
Filing for bankruptcy triggers an “automatic stay.”
Bankruptcy stops actions to collect debts, keeps creditors from repossessing cars and other personal property, and eliminates future annoyance as you work towards your financial future. Bankruptcy also stops garnishments.
If you’re a homeowner in the middle of a foreclosure, the automatic stay will put the brakes on that as well. It is important to discuss your financial situation with an experienced bankruptcy attorney, so you can get the best possible outcome for your financial future.
Some debts may disappear entirely.
When you file for bankruptcy, it’s likely that some debts will be discharged, meaning you will get a piece of paper saying you do not have to pay them anymore. Also, many people experience an immediate increase in their credit scores. After bankruptcy, you will still be able to re-establish credit so you can get credit cards for emergencies, car rentals, etc.
Less credit means less temptation.
Many people find that emerging from bankruptcy without a lot of credit cards helps them train themselves to make new financial decisions. The stress-inducing tendency to buy on credit is replaced by regret-free purchases, and less of the budget is spent on interest and financing charges. In addition, you no longer feel the need to use credit exclusively, as you have your finances more in line with your income.
You may also benefit from the credit counseling course offered to help you in your new pursuit of financial freedom.
The Bright Side
With the current economic struggles brought on by Covid-19, many have experienced financial struggles. Your financial freedom matters. Bankruptcy is not something to be afraid of! Begin investing in your future, instead of paying for your past. There is no stigma attached to making the best decision for yourself and your family.
Freedom from financial stress, anxiety, worry about garnishments and harassment, and limited opportunities can be achieved. Bankruptcy could very well be the answer you’ve been looking for.
How do I begin the process of filing bankruptcy?
If you think bankruptcy might be the answer to your future financial freedom, it’s time to call a bankruptcy attorney. A good attorney will listen to your financial story, explain your options, and guide you in the best direction. We have helped hundreds of clients pursue a fresh start through bankruptcy.
In your free consultation:
- We’ll explain everything to you, answer your questions
- Give you the guidance you need to move forward
- Help you understand the options available to you and how they will affect your future
- Help you determine the next steps to take
How do the methods of bankruptcy differ?
Choosing the right option is definitely best done with the help of a lawyer, but the differences are based on a few factors:
- How much debt do you have in comparison to your income?
- After you cover the basic needs of your family are you able to make payments toward your debt at all?
- Is any part of your debt secured by property, such as a home, car, or boat?
- Is any of your debt related to alimony, child support, or overdue taxes?
Here’s how the process works:
- Collect your bankruptcy documents.
- Complete the required forms.
- Go to court to file your forms and pay your filing fee.
- After you are appointed a trustee, mail your documents to the trustee.
- 30-40 days after filing, meet with your trustee.
- Continue making your payments until you receive your discharge of debts (usually after 60 days).
If you choose to move forward with a bankruptcy:
- We’ll guide you through the documents you need to provide
- Give you the proper forms needed for bankruptcy
- Help you complete them
- File your case for you with the Court
During the process, you will be appointed a court trustee to help with the process. We will help you navigate that relationship as well. In fact, we will be there every step of the way, making sure you know what is happening and how it will help your future.
Exploring your options for a better financial future is admirable—and we are happy to help you find the solution that is right for you. Don’t let excessive fees, interest, and penalties keep dragging you down. Let us help you begin again today.