Bankruptcy FAQ's & Forms
I know that debt can cause a great deal of stress, and sometimes bankruptcy is your only option. In order to help you decide if bankruptcy (or what kind of bankruptcy) is right for you, I've compiled a list of frequently asked questions about bankruptcy and what it can mean for you.
What is bankruptcy?
Bankruptcy is a Federal Law designed to give individuals a financial fresh start. It has been utilized by millions including many celebrities and most recently by corporate giants such as GM and Delta.
What are my options?
An individual may file Chapter 13 or Chapter 7 bankruptcy. Chapter 7 allows one to eliminate unsecured debt such as medical bills, credit cards, home or auto deficiencies and most finance companies. One must also list secured debt such as a home, vehicle, furnishings or jewelry. You will not lose your home, vehicle, furnishings or jewelry so long as there is little or no equity. One may keep these items or in the alternative surrender the items and eliminate the debt. Chapter 13 bankruptcy is a five year repayment plan. There is no risk of losing your property because it will be paid off over five years.
Which is best for me?
Chapter 13 is best if you have equity in your home, your income is too high to do chapter 7, or your debt is the kind that would not go away in a Chapter 7 (taxes, student loans or child support arrears). Chapter 7 allows you to rebuild your credit quicker than Chapter 13. Chapter 7 costs less and is easier to complete than Chapter 13.
What is the downside to filing bankruptcy?
It is not good for your credit, but neither is being in collections, being sued or carrying too much debt. If your credit is already poor, bankruptcy may improve your score quicker than doing nothing. The reality is that car companies and credit card companies solicit people as soon as they get out of bankruptcy.
What can filing bankruptcy do for me?
Bankruptcy will stop harassing phone calls and letters, stop lawsuits and garnishments. It stops repossessions and foreclosures. Once you file creditors can take no action to collect a debt.
There is no fee to meet with or talk to the attorney, and all your bankruptcy and non-bankruptcy options will be discussed.
I've worked hard for my clients in Gwinnett County, and I'm ready to work hard for you. For more information about Chapter 7 and Chapter 13 bankruptcy, please call me. I'm available 24 hours a day!