Cobb County Bankruptcy Debt Relief

Each case is individual, but there are many possible options when you are facing foreclosure on your home. Many individuals in the State of Georgia got caught in the sub-prime mortgage crash and now face mortgage payments that are impossible to handle. When this is the case, filing gives you the time and opportunity to handle the back payments as there will be a halt to collection actions for several months as the filing makes its way through the process of bankruptcy. During this time, you can seek a loan modification or other solution to the problem of your mortgage. It is critical that you get legal representation from a Marietta bankruptcy attorney to answer your questions with regard to this very important issue. Our firm will assist you in determining how to best move forward in resolving serious debt and mortgage problems.

Not all types of debt can be liquidated or discharged in a Chapter 7 bankruptcy filing. However, it will get rid of many kinds of debt to varying degrees. For example filing does not allow you to discharge recent taxes, student loans, child support and alimony and also some types of court fees and fines. Nevertheless, you can fully discharge credit card debt and overdue medical bills as well as many other types of debts. This can make paying the ineligible bills easier, since you will have so much more cash available if you are no longer paying a large number of your outstanding debts. If you still owe on your car or home, we can probably help you find solutions to help you keep this property when you talk to us, depending upon your circumstances.

There are two primary types of debt – secured and unsecured. A secured debt refers to something that is secured by a form of property that serves as collateral; in these cases, the creditor can claim the property to pay off the debt. For example, a mortgage and a car loan are secured debts because the property, the house or car, could be reclaimed. On the other hand, medical bills and credit card debt are unsecured debts because there is no property that could be taken.

Many people have the misconception that you are only allowed to file bankruptcy one time throughout your entire life. However, while you do have to wait between filings, you can technically file multiple times. If you filed Chapter 7 the first time, you will need to wait 8 years until you can file Chapter 7 again and 4 years to file Chapter 13. If you filed Chapter 13 the first time, you need to wait 2 years before you can file Chapter 13 again and 6 years before you are permitted to file Chapter 7.

As soon as you have filed, what is known as the automatic stay will protect you. Therefore, creditors will immediately need to cease any and all collection efforts against you. If they continue to make efforts to contact and collect, just alert them, in writing, about the bankruptcy petition. After that, if they still continue, you may have grounds to pursue legal action.

Both chapters can offer benefits. Moreover, the benefits will vary depending on your circumstances. Therefore, there is no blanket answer as to which is the “better” option as it is based on many different factors. For example, if you do not have enough disposable income to pay off your creditors, you may be best suited for Chapter 7. However, if you have a lot of valuable assets and property you aren’t willing to risk in liquidation, you might be better suited for Chapter 13.

Factually, if you find yourself contemplating bankruptcy, you probably already have an issue with your credit, or soon will. The advantage of filing is that you NO LONGER OWE many of your debts, and they will show a $0 balance on your credit report. Since such a large number of Marietta residents have filed for bankruptcy, it no longer has the stigma it once did. Additionally, credit card companies usually begin making offers within a few months after the bankruptcy. Usually, they offer high-interest and low credit limit cards, but even so, carefully managing your financial situation after bankruptcy can finally result in a repaired credit standing over time.

When you file, there is an immediate halt to garnishments on your paycheck. Through the bankruptcy process, the outstanding debt will be sorted out and you will have access to your whole paycheck. Stopping wage garnishment is one form of relief you can experience after filing.