If you think filing for bankruptcy is going to entirely resolve all your financial struggles, think again. While some forms of bankruptcy do relieve you of some of your debts in relatively short order, there is no form of bankruptcy that completely wipes out all debt. Before proceeding or filing for bankruptcy under any chapter, consult with an experienced bankruptcy attorney in Marietta.
At Busch, Reed, Jones & Leeper, P.C., we are committed to helping you take stock of all your options and make the best decisions possible moving forward. Here’s what you need to know before your first meeting with a bankruptcy lawyer:
What Kinds of Debt Can I Erase by Filing for Bankruptcy?
Bankruptcy cannot eliminate fixed financial obligations such as student loans, child support, alimony, taxes, or other debts owed to the government. However, it can eliminate unsecured debts such as credit cards or some personal loans, which are given without requiring any collateral. This is in part because there is no asset attached to the loan, making it easier to dismiss the debt without requiring you to sell of any significant property. There may be some exceptions.
What Will My Creditors Do When I File for Bankruptcy?
It is important to keep track of your interactions with your creditors, especially after you declare bankruptcy. Many creditors have been found guilty of harassment and unfair practices in order to intimidate their debtors. This can look like excessive, repetitive phone calls, threats of violence or blackmail, intentionally contacting you at inconvenient times, sharing information about your debt with your family, friends, or neighbors, and other forms of invasive, inappropriate contact. Regardless of whether you have filed for bankruptcy yet, call Busch, Reed, Jones & Leeper, P.C. if you have been a victim of inappropriate or harassing behavior by a creditor or lender.
If your collector or creditor continues to call or send you letters, this may not necessarily constitute harassment. However, if you are unsure, contact an experienced bankruptcy attorney right away in order to protect yourself and ensure you are treated fairly.
Unique Benefits of Chapter 13 Bankruptcy
There are some financial problems that can only be solved by filing bankruptcy under Chapter 13. With Chapter 13, you are not required to sell of nonexempt property. This is critical if you rely on important assets that you currently owe money toward, such as a car, house, etc., and it can give you the opportunity to get back on your feet without getting rid of things you need.
Approval under Chapter 13 can also prevent you from being foreclosed upon. Chapter 13 allows you to make a repayment plan with your creditors, including your mortgage lender, which lets you catch up on missed payments and get back on schedule without losing your house in the process.
Chapter 13 repayment plans are also designed to take into account the value of the securing property in relation to the actual amount owed. For example, if you owe triple the amount of your home’s value in mortgage loans, a judge may only require you to pay back an amount equal to the current value of your house. This is known as “cramming” and can be applied to other relatively-valued assets, such as automobiles.
Contact a Bankruptcy Attorney in Marietta Today by Calling (770) 629-0154
Our firm is committed to serving you at your best and worst, and we are committed to helping you make financial decisions that will set you up for success in the future. When it comes to bankruptcy, we have served many people in your shoes and know exactly what it takes to get you a positive result in your case. By connecting with one of our experienced bankruptcy lawyers, you increase your chances of a positive outcome and a quicker resolution to your financial struggles.
Don’t wait to involve someone who can help. Contact us to tell us how we can serve you, or call us at (770) 629-0154 to speak with a member of our team right away.