Stone Mountain Bankruptcy Attorney of Cornwell Law Firm

The list of families who are struggling to pay their bills in Stone Mountain, Georgia, is growing by the day. In fact, the economy has turned downright ugly. No wonder people are stressed over paying off loans, mortgages, taxes, and meeting other financial obligations. The uphill struggle seems to be an impossible situation and it beats a lot of people down.

If you’ve defaulted on loans, facing foreclosure, or have a combination of financial debts that are burying you alive, then maybe bankruptcy could save you from total ruin. Bankruptcy is one of the most misunderstood financial tools there is. If you think it might be for you, but are unsure about how it works, contact a Stone Mountain bankruptcy lawyer at the Cornwell Law Firm and have all of it explained to you.

The Two Main Kinds of Bankruptcies

People who are unable to pay their debts but do discuss it with a lawyer will also decide which of the two main types of bankruptcies would be the best option. The first course of action is to take the ‘means’ test. This is an assessment of your debts, assets, and income. Passing it means you are eligible to file for Chapter 7 and eliminate all debts that qualify. The drawback to Chapter 7 is that you are going to have to liquidate any non-exempt personal property. Usually, in Chapter 7 you’ll be able to keep your car, work items, clothing, furnishing, and your home. This is the kind of bankruptcy that is usually the best solution for those without significant assets and a steady source of income.

If you do not pass the means test, then it will be time to see if Chapter 13 would work out for you. In this kind of bankruptcy, rather than eliminate all your debts, your reorganize them. You will either pay the full amount or a partial amount (usually around 60%) of your total debts. A monthly payment schedule will be set up and you will make that payment every month to your bankruptcy manager who distributes it out to your creditors. You are not required to liquidate your property. This kind of bankruptcy usually works out best for those with assets and a steady source of income.

You should be aware of what kind of loans will not qualify for being eliminated if you file bankruptcy. Some examples are child support, unpaid taxes (certain age), and student loans. On the other hand, secured loans like a car loan will be subject to repossession if not paid on time. Bankruptcy can still be beneficial in that it frees up other money to help with those things you still have to pay. You can find out more about these differences in bankruptcies by contacting the Cornwell Law Firm.

Bankruptcy Alternatives

There are certain circumstances where bankruptcy may not be the best solution for you at all. Sometimes debt negotiation can be a better choice. Anytime someone files bankruptcy, the creditors don’t get the full total due them back. That makes lenders open to other options for settling the debts. You could negotiate to try to get your fees lowered, or the interest rate, or a longer term, or a combination of things that both parties found satisfactory. It could be the difference between paying your bills or being at default.

The Cornwell Law Firm

After filing bankruptcy people expect their life to be turned upside down. The truth is that the biggest change you’ll see is having fewer bills to pay. Naturally, your credit will take a hit, but that can be built back up when you get back on your feet. Bankruptcy can give you a fresh start and take the stress off your shoulders. It gives you time to step back and reorganize and get your life together. That is the whole reason it was created.

Once you get things back on track it will surprise you at how much simpler and easier it is to stay on track and have things organized again. You will no longer be dodging phone calls to keep from talking to bill collectors and have an overall much happier life. There is nothing like a new lease on life to make it feel worth living again. If you are under a heavy burden of debt and would like to discuss your options for finding a solution, then contact our expert Stone Mountain bankruptcy attorney at the Cornwell Law Firm and schedule a FREE consultation.