Lithonia Bankruptcy Attorney Keith Cornwell of Cornwell Law Firm

Do I Need A Bankruptcy Lawyer in Lithonia?

The pressures that come with financial hurdles can force one to apply for or declare bankruptcy. While this process may be handled personally by an individual or firm seeking to declare bankruptcy, it can sometimes be a little tricky, especially if you do not understand the underlying challenges of filing for bankruptcy and the possible financial and tax implications. But should you engage in the game you do not understand the rules? Although some people may have succeeded in filing for bankruptcy without involving a lawyer, it is indeed a huge risk to take this approach. In some other cases, individuals who have worked with inexperienced lawyers who have little or no understanding of bankruptcy law in Lithonia, GA have ended up worsening their cases instead of solving the issues around their financial stress.

With the new changes in bankruptcy law and the procedures of filing for various types of bankruptcy, it is becoming increasingly important to find a highly experienced lawyer in this area of law. It is worth noting that casual lawyers are not the type for this kind of matter. You need a lawyer who practices bankruptcy law and who appears regularly in a bankruptcy court in Lithonia. This is because one who practices regularly has a firm understanding of ware of legal requirements and the procedural rules.

What You Need to Know about Chapter 7 Bankruptcy

Many people who have had to think about declaring bankruptcy must have thought of Chapter 7 Bankruptcy. The primary focus on Chapter 7 bankruptcy is to help discharge some of the debts and to allow the debtor to rebuild his or her financial status. In this case, the debtor does not carry any liability once the debts have been discharged. In Chapter 7, partnerships, limited companies and parastatals or public corporations are not allowed to discharge the liabilities. Where the discharge is allowed such organizations may not have absolute discharge. His means that some debts may be discharged while others may not such as newer tax obligations, student loans and domestic support obligations.

What You Need before You File for Bankruptcy Under Chapter 7

The law requires that you pass the “means test” in which you will be required to obtain pre-filing credit counseling certification from a recognized credit counselor. Therefore, it is important to discuss with your lawyer some of the requirements before filing for Chapter 7. The whole process begins when you prepare and file a petition in a bankruptcy court in Lithonia, GA. You will be expected to file key documents, including income statements, expenses, debts, property information and make such other financial disclosures that are relevant to your case. All these documents are intended to prove that you qualify to file and declare bankruptcy under the state and federal law.

What Will Chapter 7 Do for You?

It should be known that while filing Chapter 7 bankruptcy stops certain collection actions, not all the actions are stopped. Some special actions such as child support actions will not be stopped under Chapter 7. You should also know that in some cases, the Automatic Stay may prevail for a shorter period. Upon filing the petition, the trustee handling your case will call a meeting of creditors not later than six months from the time of filing the petition, your case will be handed down four months after filing and you will be able to be relieved of the liability for most of the debts that you owe others.

However, you will file the discharge with exceptions to certain debts that may not be stopped automatically or which cannot be stopped by Chapter 7. In the event you are granted an automatic stay, all collection actions, repossessions and foreclosures on your property will be temporarily suspended and no action will be taken by your creditors. What the stay does is that it allows you a reprieve, a period within which you can commence negotiations with your respective creditors to try and arrive at amicable solutions based on the circumstances.

Chapter 13 in Lithonia

Filing Chapter 13 in Lithonia, Georgia should have a certain limit of the debts in order for him or her to apply for Chapter 13. Chapter 13 allows you the opportunity to stop any possible foreclosure actions as you struggle to clear the arrears. It will also stop any wage garnishments, liens, levies and bank attachments, including the IRS tax levies that may have accrued over a period of time. The good thing about Chapter 13 is that it protects your consignors and those who may have guaranteed your debts from any collections actions that may be instituted by your creditors. In other words, Chapter 13 acts as a consolidation loan in which your payments are channeled to your creditors through the trustee. The trustee receives the payments and distributes them to your creditors accordingly.

The Bottom line

Filing personal bankruptcy under Chapter 7 or Chapter 13 requires a keen eye for detail and a firm grasp of the legal issues underlying the petition. Any slight mistake or misconception of the law can wreck havoc and affect your rights remember that court officers are not allowed by law to offer any manner of legal advice to people looking for help on bankruptcy.

Here is a summary of the ways in which your bankruptcy lawyer will help you navigate your case:

  • Assess your case and advise you on whether or not to file a bankruptcy petition.
  • Advise you on the most appropriate chapter to file.
  • Advise you on chances that your debts will be discharged.
  • Give you advice on whether or not your property stands to be foreclosed on, repossessed or not after filing a petition.
  • Advise you on the possible tax consequences of filing for bankruptcy.
  • Advise you on whether you should stop paying your creditors.
  • Explain Lithonia bankruptcy law and procedures to you.
  • Help you prepare the necessary paperwork and complete filing the forms.
  • Assist you to comprehend other issues around your bankruptcy case.

Are you still worried about losing your property through collection actions? Do not waste any more time! Contact the most reputable law firm that retains the most experienced and knowledgeable lawyers in the area of bankruptcy and safeguards your hard-earned property. As the top Bankruptcy Attorney in Lithonia , we have represented clients such as you many times and have won serious legal battles. We have successfully assisted many people to rebuild their damaged financial situations.