Tag Archive | "Bankruptcy"

Filing for Bankruptcy Protection in Georgia

Filing for Bankruptcy Protection in Georgia

A State-by-State Guide to Filing for Bankruptcy Protection: Georgia

Bankruptcy laws vary from one state to another. Here is a breakdown of Georgia bankruptcy guidelines to help you understand the differences when filing for Chapter 7  Bankruptcy vs. Chapter 13 Bankruptcy.

Georgia Bankruptcy Guidelines

A Georgia bankruptcy lawyer will probably begin your consultation by explaining the difference between Chapter 7 and Chapter 13 bankruptcy. This often includes what is called a “means test.” This involves asking some very personal questions about your assets, debts and your financial goals. The answers you provide to these questions will help you and your bankruptcy lawyer determine if filing Chapter 7 or Chapter 13 bankruptcy is right for you.

Chapter 7 bankruptcy is usually called “liquidation” because the bankruptcy trustees in Chapter 7 bankruptcy cases may opt to sell any non-exempt property the debtor owns. In many Chapter 7 bankruptcy cases, the debtor does not own any non-exempt assets, so no property is sold. Unsecured debts may be completely discharged in Chapter 7, making it an attractive bankruptcy option.

If you are filing Chapter 7 bankruptcy, find out from your Georgia bankruptcy lawyer which and how much of your assets may be exempt from liquidation.

Georgia State Bankruptcy Exemptions

Homestead

* $10,000 for real or personal property, $20,000 if property owner is married.

Wages

* 75 percent of weekly earnings.

Automobiles

* Your interest in up to $3,500 in all motor vehicles.

Personal Property

* $1,500 for any implements, professional books, tools of the trade.
* Up to $300 in value in any one item.
* Up to $5,000 in household furnishings, good, clothes, appliances, books, animals, crops or musical instruments.
* $500 in jewelry.
* Certain retirement and insurance benefits may be fully exempt.

Note: Keep in mind all state bankruptcy laws and exemptions are complex. If you need legal advice or want to fully understand how Georgia laws affect you, please speak with an attorney in Georgia. State bankruptcy laws are subject to change at any time. For the latest information, read the full text of Georgia bankruptcy laws.

Links to Georgia Bankruptcy Lawyers:

moneylawyer.com

thebklawyer.com

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I Need A Debt Management Expert!

I Need A Debt Management Expert!

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In today’s world there are no shortage of people with debt management issues. So where do you go for debt management help? Here are a few quick tips from the debt management expert…

1) Go to Debt Management Expert web sites: This site is organized to give you helpful advice on a variety of debt management issues. We are specifically looking at large issues involving your home and credit. We also recommend that you look to other debt management sites to get helpful tips. There is no substitute for reading up on the issues that you face and looking at how different experts recommend you approach those issues.

2) Talk to people who may be in similar debt management situations: They may not be debt management experts but they certainly will give you another perspective. It may be uncomfortable but it is highly likely that someone in your situation has tried something to help their situation that may actually help your situation. If you don’t know anyone directly join a debt forum and learn in a more anonymous fashion.

3) Explore debt management and debt settlement companies as potential debt management experts: These companies can help but there a both pros and cons to working with them. Make sure you really understand what you get out of this before taking the dive. Many are debt management experts but they are also trying to make a buck. For more information on this read our recent post: Enrolling in a Debt Management Plan to Help Your Monthly Budget and How Debt Management and Debt Settlement Companies Can Simplify Your Financial Life.
4) Attorneys as debt management experts: Talk to a bankruptcy attorney or a loan modification attorney. Attorney’s can be a good solution if you need to modify your loan or if you are considering bankruptcy, but again this comes down to your specific situation. Don’t limit you conversation to one attorney. Talk to several if you go this route and then toughly reference them to make sure that they are debt management experts with good track records.

If you spend the time to do all these well, the next time you look in the mirror you may see a Debt Management Expert.

Related Articles:

 I Need A Debt Management Expert!

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How Debt Management and Debt Settlement Companies Can Simplify Your Financial Life?

How Debt Management and Debt Settlement Companies Can Simplify Your Financial Life?

200px Smartcard2 How Debt Management and Debt Settlement Companies Can Simplify Your Financial Life?
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OVERVIEW
Debt management or debt settlement companies can often save you time and trouble when it comes to debt consolidation. A benefit of using a debt management company is the ease of the transition from having many, smaller debts to having one larger one. That being said you need to closely review any company you plan to work with to ensure that they are doing what you agree to.

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The process of debt consolidation can be tricky and intimidating and often not something for you to try, if you are not financially savvy. Debt management or debt settlement companies can often save you time and trouble when it comes to debt consolidation. A benefit of using a debt management company is the ease of the transition from having many, smaller debts to having one larger one. A debt settlement company will take over paying all your creditors. You have to make one simple payment every month.

The idea of debt consolidation is simple. The many smaller debts you carry are covered by one large loan. These are typically unsecured loans such as credit cards, personal loans, store credit cards, and bank overdrafts. The benefits of debt consolidation are that that you can negotiate one interest rate for this loan and you can negotiate the amount of the payment. Often, during the negotiation process, you can often reduce the amount of the debt.

Pros of Debt Settlement
• Avoid bankruptcy – By using a debt management company to consolidate your debt, you will can reduce your debt burden and pay off your bills more comfortably. You can protect assets, such as your car and your home, using debt settlement.
• Make One Easy Payment – You will make one payment to consolidate your debt each month to the debt management company. They will disperse the funds to the creditors. This one payment on your consolidated debt simplifies your bill paying enormously.
• Avoid Harassment – Debt collectors are notorious for their ruthless tactics. A debt management company eliminates a debt collector’s ability to hound you for payment on your consolidated debt.
• Avoid Lawsuit – Debt settlement companies can help you get a hold of your consolidated debts and get them settled in reasonable manner. This can help eliminate the possibility of a lawsuit against you.

Cons
• Debt consolidation negatively affects your credit score.
• During debt settlement, some of your accounts will get charged off. Debt consolidation can negatively impact your credit score. Debt consolidation can be repaired through time and careful use of credit in the future.
• Fees
• Some unscrupulous debt management companies will charge exorbitant fees for their services. Often, you will be asked to pay a percentage of your monthly payment to the debt settlement company in fees.

Points to remember:
• Choose a reputable non-profit debt management agency for debt consolidation. Make sure you toughly investigate the company you decide to use. You need to make sure you choose your debt management company wisely.
• Learn the fee structure for debt consolidation up front.
• Before you agree to a debt management plan, understand the impact this will have on your credit rating.
• Stop using your credit while you’re trying to repair your debt. Create a budget and stick to it.

Related Articles:

Examples of Debt Management Companies:

 How Debt Management and Debt Settlement Companies Can Simplify Your Financial Life?

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What Happens When You File for Bankruptcy?

What Happens When You File for Bankruptcy?

150x92 What Happens When You File for Bankruptcy?
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OVERVIEW
When a person or company is no longer able to pay its creditors, the individual or firm usually files for bankruptcy protection. Typically, a bankruptcy filing is initiated voluntarily by the person, who will declare him/herself unable to meet his/her creditors. The most common form of bankruptcy generally protects an individual or firm’s assets from creditors.

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When a person or company is no longer able to pay its creditors, the individual or firm usually files for bankruptcy protection. Typically, a bankruptcy filing is initiated voluntarily by the person, who will declare him/herself unable to meet his/her creditors. The most common form of bankruptcy generally protects an individual or firm’s assets from creditors. Sometimes, creditors will file a bankruptcy against an individual in order to try to get back some of what they are owed or to restructure the debt. Bankruptcies are always filed in the United States Bankruptcy Court, which is a federal court, but bankruptcies are subject to state laws as well.

When You File for Bankruptcy: Types of Bankruptcies
There are six different types of bankruptcies according to the Bankruptcy Code. Chapter 7 bankruptcy handles the basic liquidation of the assets of an individual or a business. Chapter 11 bankruptcy handles the reorganization of a business’s debts, and Chapter 13 bankruptcy handles the rehabilitation of an individual with a steady income. Those are the most common forms of bankruptcy declared by individuals and businesses. Up to 65% of consumer bankruptcy filings are Chapter 7 bankruptcy filings. There are strict laws and guidelines for bankruptcy filings and bankruptcy fraud. If you are considering filing for bankruptcy, be sure to seek counsel so that you understand the complexities of the issue.

When You File for Bankruptcy: Chapter 7
In a Chapter 7 bankruptcy, the debtor needs to surrender all nonexempt property and assets to the court. The court then converts those assets to cash. That cash is then used to pay the creditors at least a portion of what they’re owed. This action then discharges the debtor from being liable for the debts. Creditors are notified of the bankruptcy proceedings by the court. Once they’ve received that legal bankruptcy notification, they must stop their collection efforts for that debt.

Bankruptcies are a matter of public record. Anyone looking for bankruptcy information can easily find it. Typically, however, unless your landlord or your employer are named as creditors in the bankruptcy action, they will not discover that you’ve filed for bankruptcy. You cannot be fired from your job because you’ve filed for bankruptcy. Spouses do not have to file bankruptcy together. If only one person has debts, it is likely that the spouse will not have to file bankruptcy as well.

When You File for Bankruptcy: Seek Legal Counsel
When you are contemplating bankruptcy, be sure to first seek legal counsel. You will need assistance with debt management, and debt settlement. You will be instructed about what debts can and cannot be discharged. You’ll want to understand which assets are protected. Keep in mind that hiding assets or running up debts right before declaring bankruptcy can create serious legal problems.

When you file for bankruptcy, it has a negative connotation. But the reality is that you can recover from bankruptcy and begin to recreate a positive financial life. You should begin this process as soon as you can after the bankruptcy filing. Reestablish credit through your bank. Reaffirm your car loan. Remember that when you file for bankruptcy, you cannot do so again for eight years.

 What Happens When You File for Bankruptcy?

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