Lawrenceville GA Bankruptcy Attorney Keith Cornwell
Atlanta consumers who live around the Lawrenceville GA have some major financial things to deal with. The economy has slipped over the last few years, making it quite difficult for people to make ends meet. The bills never stop, there are still car payments to make, utilities, and mortgages. There are times when it can be smart to declare bankruptcy, but not always. Many people have done it, and at the right time, it can be a good move. If you need some advice in this area then you should let a Lawrenceville Bankruptcy Attorney advise you on whether or not it is a good idea for your specific situation.
There are numerous common signs indicating financial ruin is inevitable. Although every bankruptcy case is unique, here are some of the common warning signs.
A client may be heading for a financial disaster if:
- You never pay more than the minimum payment on credit card balances.
- You have credit cards over six months past due, and you are receiving letters/phone calls from collection agencies.
- You have received notice from your bank that your mortgage is past due.
- You are not able to pay off all you non-secured debt within five years.
- You have been served legal papers by an attorney. You are being sued in court to collect on your debt.
It is important to be aware of the signs of possible financial ruin. Many agree debt is like an avalanche. You may have a few small debts. Then the problems grow as you acquire more debt. Pretty soon you’re on a fast and slippery slope, just like an avalanche barreling down a mountain. Sometimes people find the situation so out of control, they cannot even pay their monthly bills.
Bankruptcy Abuse and Prevention and Consumer Protection Act
The Bankruptcy Abuse and Prevention and Consumer Protection Act of 2005, (BAPCPA), was created in April 2005. This law does not allow debtors to file a chapter 7 bankruptcy if they have the funds to repay their total debt or a portion of their debt. The debtor must meet several requirements to file a chapter 7 bankruptcy. The means test makes it more challenging and difficult for the consumer to file either a chapter 7, or a chapter 13 bankruptcy.
There is nothing to be ashamed about when you file bankruptcy. It is simply a financial strategy and you should not get down on yourself if it turns out to be the best move for you. Financial hardship is something people tend to feel bad about. Things just happen sometimes, like losing your job, unexpected medical bills, etc. Life comes at us in all kinds of ways. There were more than a million bankruptcies filed in 2013 alone. It has lost the stigma that it once carried. The Cornwell Law Firm is very experienced in this area and are ready to help. They understand how uneasy people can feel about bankruptcy, and they know how to put your mind at ease.
Different Kinds of Bankruptcies you see in Lawrenceville GA
If you are struggling with debt then sitting down with a qualified attorney is a wise move. They know how to explain your best options without being judgmental, they are friendly services. They can take your income and expenses and lay things out for you. They have a means test that will let you know if Chapter 7 is for you. With this option, you would be able to keep your home, car, furniture, and clothing. This is an option that fits best for people who don’t have a steady, reliable income or enough assets to get them through.
If you attorney suggests Chapter 13 it is because you are not eligible for Chapter 7. Rather than just writing debts off, with this option you simply restructure them. Usually, debtors will pay as much as .60 on the dollar using a repayment plan. The debt will be paid back over time (usually 3 to 5 years) in monthly installments. This kind of restructuring helps those who actually do have a stable income, but their debt has just gotten out of control. These kinds of plans help to avoid foreclosures and gain time to get things caught up. A Lawrenceville Bankruptcy Attorney at Cornwell Law Firm can set you straight.
If you are thinking about filing bankruptcy, you need to be aware that not all debts can be written off with a bankruptcy. Car loans and secured cash advances have to be paid, and usually, that ends up being a repossession by your creditors. Bankruptcy still has some advantages, like helping to free up some cash to use to pay those bills that bankruptcy can’t write off. Call the Cornwell Law Firm and let them give you solid legal financial advice.
Bankruptcy is not always the best solution in times of financial troubles. Sometimes debt negotiation is a better way to go. Creditors simply don’t always get their money back during a bankruptcy. When you are involved in a debt negotiation, your creditors will lower the amount you pay, along with the interest rate, and waive penalties. This is so that everybody gets something. They at least get a portion of what you owe, and you avoid stiffer penalties.
When you want to avoid bankruptcy the negotiation track is a good one. Chapter 7 gives you a clean slate, wipes you debt out, but it is also a liquidation. That means it can be a bad move for the wrong people because they’ll be relinquishing their assets, usually property. If you are close to filing a Chapter 7 you need to remember that there might be an alternative, and it could be worth looking into.
A debt consolidation can help in some situations. You make an arrangement with your creditors on how to repay your debts, without having to let go of your assets. A debt consolidation will combine all your bills into one easy to manage monthly payment, and lower your interest rate as well. It can be a good alternative that saves you from the years of having the bankruptcy on against your credit. You should speak with a Bankruptcy Attorney about what you can do regarding debt consolidation.
More on Chapter & and Chapter 13 Bankruptcy
To file a chapter 7 bankruptcy the debtor must pass the means test. The test compares the debtors total household gross income for the past six months, to the median income for the state in which the debtor resides. The debtor passes the means test if their income is lower than the median income. The test continues if the debtors’ income is higher than the median income. The testing continues until a final determination of the clients financial status is confirmed.
A similar test is used to determine if a debtor can file a chapter 13 bankruptcy. The test is used to determine how much can be paid to unsecured creditors. The test also determines how long the debtor remains in the chapter 13 bankruptcy. In Lawrenceville, and throughout the nation, debtors need to complete two credit counseling classes. One is completed prior to the bankruptcy filing. The second class is completed after the case is filed.
Finding the best fit Bankruptcy Attorney
The thought of filing bankruptcy alone can bring many unpleasant thoughts, worries and stir up emotions that may unnerve us. Choosing the right lawyer or firm for this process is not an easy task. Let’s be real, there are hundreds of different lawyers in Georgia alone and unless you were referred to us by a trusted confidant you don’t know much about Cornwell Law Firm. I hope that once you look through the information on our site you feel comfortable enough to contact us and schedule a consultation. I am here to help as your Lawrenceville bankruptcy attorney.
The Cornwell Law Firm
Most people really expect their lives to change once the file bankruptcy. However, that isn’t the way it always is. Sometimes the only thing that changes is having to pay less on your bills. A bankruptcy does affect your credit, but it can save you a lot of headaches in other ways. It will help you to get your finances under control and organized. You can have some piece of mind for a change, and not sit around worried over money. No more phone calls from creditors. It can be a real stress reliever to get those bills off your back. If you are considering bankruptcy, then give a call to Cornwell Law Firm today and get a FREE, no-obligation consultation. Let them show you how they can help.