Top Bankruptcy Questions

It you are in significant debt, about to lose your job,or you can no longer support your family financially – you should consider contact an experienced Cumming Georgia bankruptcy attorney. No one wants be stuck in rock bottom, but thankfully, even when it seems like you’re at the end of the rope, backup measures exist: the bankruptcy system. Bankruptcy is our legal system’s solution for debts that have amounted to something more than you can pay. This article gives insight into bankruptcy and specifically Chapter 7 Bankruptcy, the most common method of bankruptcy.

When Should I File for Bankruptcy in Cumming Georgia?

One applies for bankruptcy when they have overwhelming debts on which they have to default. One should use bankruptcy as a backup solution, not as a first choice for putting one’s financial means back on track. For instance, you should file for bankruptcy if you have a home nearing foreclosure, you’re out of work and have no savings, you’re suffering from hefty lawsuits, etc.

Why Should I File for Bankruptcy?

Filing for bankruptcy puts you on an “automatic stay”, which means your creditors are prohibited from contacting you about collecting your debts. If your case proves to be successful in court, your debts may be discharged, meaning you don’t have to repay your creditors. Bankruptcy should not be the first thing one should consider when falling behind on payments, and filing for bankruptcy can be a difficult process that one shouldn’t undergo without an attorney.

What is a Chapter 7 Bankruptcy in Cumming Georgia?

Chapter 7 bankruptcy, called Chapter 7 Bankruptcy because its stipulations are found in chapter 7 of the United States Legal Code, is the most common, famous type of bankruptcy. When one successfully files for Chapter 7 Bankruptcy, the majority of debts (including Credit Card Debt, Foreclosure Debt, Business Debt, Repossession Debt, etc.) are wiped clean immediately. Foreclosures, lawsuits, wage garnishments, and other creditor actions are also halted. In return, one who files for this type of bankruptcy is forced to sell all unnecessary, “nonexempt” assets to pay off debts, but usually these assets do not include one’s house or car. Upon selling all of one’s nonexempt assets, the debts are paid off as much as possible, and the debts are wiped clean. A Chapter 7 Bankruptcy will stay on your credit report for ten years, then automatically erase itself.

Am I Eligible for Chapter 7 Bankruptcy in Cumming Georgia?

Please note that you can only file for Chapter 7 Bankruptcy once every 8 years. You are eligible for Chapter 7 Bankruptcy once you, with the close help of an attorney, file a mass of petitions and schedules (translate: paperwork) that essentially state three things: you are unable to repay your creditors, you cannot sell your assets to repay your creditors, and you borrowed the money from your creditors with the good intent to pay it back. If you and your attorney show the court these three things, you’ll be successful in filing for Chapter 7 Bankruptcy.  For a file to be filed in the Northern District of Georgia, Cumming GA’s division, you should be residing in Cumming Georgia.  If you do not reside in Cumming Georgia, we can still file your case in most instances, but it will be filed in one of the several other counties in Georgia that we service.

What are the Main Disadvantages of Filing For Bankruptcy in Cumming Georgia?

• Bankruptcy will impact your credit score. Your credit score is negatively impacted by the report, and acquiring loans right after filing bankruptcy becomes more difficult. However, the vast majority of clients that file bankruptcy can finance an automobile at favorable interest rates after one year and finance a home after two or three years. In addition, most people’s credit scores are actually better one year after filing bankruptcy than at the time their case was filed.
• Nonexempt property essentially disappears when filing for bankruptcy. It is unlikely for any given case, but some people filing may lose some of their assets as a part of a bankruptcy case. An experienced Cumming Georgia bankruptcy attorney can let you know if this will be a problem with your case. However, most bankruptcy cases filed in Cumming Georgia are known as “no asset” cases, meaning that the person filing does not lose any of their assets as a result of the case.

What are some Untrue Myths About Bankruptcy in Cumming Georgia?

• Bankruptcy Is Expensive. Bankruptcy filing fees can be as little as a few hundred dollars, and attorney fees can vary. Bankruptcy is only as expensive as you make it; with affordable attorneys, the cost of bankruptcy shouldn’t be a large factor in your decision to file. Considering the amount of debt that is discharged in most bankruptcy cases filed in Cumming Georgia, bankruptcy pays for itself and is much cheaper than any other reasonable alternative.
• Bankruptcy Affects My Spouse. When you personally file for bankruptcy, your spouse’s credit will not be hurt in any way. However, if you and your spouse collectively owe joint debts that you feel are weighing too heavy a burden on you, it is recommended that you both file for bankruptcy.
• Filing for Bankruptcy will Discharge ALL my Debts. Except in rare cases, filing for bankruptcy will almost never discharge certain types of credit card debt, student loans, alimony, child support, and other debts. Only some debts are discharged in filing for bankruptcy. Contrary to what many people believe, income taxes are frequently dischargeable in bankruptcy if they meet all the requirements.

Bankruptcies have different constraints and regulations depending on the U.S. state in which you’re currently residing. It is always recommended to have an experienced Cumming Georgia bankruptcy attorney present when dealing with bankruptcy and other legal matters.  Filing for bankruptcy is a measure for dire situations that isn’t the perfect option for everybody. To see if you’re eligible for Chapter 7 Bankruptcy and to see if filing for Chapter 7 Bankruptcy is the right option for you, call 770-709-1247 to have a helpful discussion with one of our highly experienced divorce attorneys today. Contact >>