Bournakis & Mitchell, P.C.:Your Bankruptcy Attorney Chatsworth GA
Bankruptcy Lawyer in Chatsworth, GA
Even responsible people sometimes go through difficult financial times. When they are tired of creditors harassing them, they might begin to consider filing for bankruptcy.
Bankruptcy is a process where an indebted individual or business can get a “fresh start” by liquidating its assets to pay off as much debt as possible and become debt free.
If you are considering bankruptcy, there are many factors that you need to consider, such as the cost of bankruptcy, your income, expenses, and your assets.
A Georgia bankruptcy attorney in Chatsworth, GA, can help you determine if filing for bankruptcy is right for you and what type of bankruptcy will be appropriate for your situation.
How Does Bankruptcy Work?
Filing for bankruptcy is a way to get rid of your debt, but it’s also a major decision with serious consequences.
Bankruptcy is a legal process in which a person or business that cannot pay their debts can discharge or “wipe out” those debts. Bankruptcy is also sometimes called “bankruptcy relief.” The purpose of bankruptcy is to relieve persons who cannot pay their debt while ensuring that the creditors receive as much payment as possible from the available assets.
Types of Bankruptcy
There are several types of bankruptcy that apply in different circumstances, including the following:
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is when all the debtor’s property and assets are sold to pay off creditors. The person receives a discharge from any debt they owe. The person must meet specific eligibility requirements to file for this type of bankruptcy.
The court will usually appoint a bankruptcy trustee to take charge of the liquidation process, which cannot last more than six months. The debtor’s assets are then liquidated and used to repay creditors, with any remaining funds distributed to the debtor.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is usually the chosen course of action when the debtor has enough income to make monthly payments to creditors within three to five years. The debtor must have had a steady job for at least 180 days before filing for Chapter 13 bankruptcy. They should also show that their income will be enough to pay their creditors back within the stipulated time.
This type of bankruptcy involves a repayment plan under which the debtor pledges to make specific payments for a set time. Any debt remaining is discharged at the end of this period.
There are other forms of bankruptcy; the one you choose to file would depend on your specific needs and circumstances. Your bankruptcy attorneys can help you determine the ideal option for you after assessing your case.
How to File for Bankruptcy
The bankruptcy process usually begins by filing a petition at the bankruptcy court. You can file a petition in person or through your bankruptcy attorney. The petition may be accompanied by some supporting documents such as bank statements, loan documents, or a list of creditors. This could also include a proposed repayment plan depending on the form of bankruptcy.
Before the proceedings commence, the petitioner must notify all creditors of the hearing so they can participate if necessary.
The Outcome of Bankruptcy
Bankruptcy allows individuals and businesses to get out of debt. It is also a way for people to start over again with a clean slate. However, a successful bankruptcy does not always eliminate all debts. For instance, in a Chapter 13 bankruptcy, the debtor still has to pay some debts, although they are given more time to do so.
The consequences of bankruptcy are both positive and negative. Still, the main benefit is that it puts an end to the turmoil and anxiety that comes with being in debt. However, it can also lead to problems such as not being able to get future credit or take out loans. This can make it difficult for people who want to buy a home or car.
How a Bankruptcy Attorney Can Help
A successful bankruptcy may hold many benefits when you’re in a financial crisis or drowning in debt. In such instances, you may be experiencing a wide range of intense emotions ranging from fear of losing all that you’ve worked for to confusion and disillusionment. If you’re in such a position, consider getting professional legal help from Georgia(GA) bankruptcy lawyers.
Your Chatsworth bankruptcy attorney can provide you with solid legal counsel devoid of any sentiments. They can help you determine which form of bankruptcy suits your situation. If you’re facing issues of creditor harassment, your attorney may also know of legal ways to stop them.
Your attorney can also help you prepare and file your bankruptcy petition and the supporting documents needed for a successful bankruptcy. With their skill and knowledge, the participation of a bankruptcy attorney in your case could significantly improve your chances of success before the Judge.
So, if you’re considering filing for bankruptcy, a bankruptcy attorney would be a great asset to have in your corner.
At Bournakis & Mitchell, P.C., we are committed to helping you attain a debt-free status at an affordable cost. So if you need a Chatsworth bankruptcy attorney, consider reaching out to us. You can contact us immediately to book a free consultation and get help taking back control of your finances.
Frequently Asked Questions
Am I Eligible to File for Bankruptcy?
Your eligibility for bankruptcy is a legal issue that you must clarify before filing. A Chatsworth, GA bankruptcy law firm can help you make this assessment and determine your eligibility for the process.
When Should I File for Bankruptcy?
You can file for bankruptcy when you’re seriously indebted and cannot repay at the due time. It is a good way to get some debt relief. Prior to filing for bankruptcy, it is, however, a good idea to explore your other options. Your attorney can help you explore these legal options and determine your case’s direction.
Is Bankruptcy Expensive?
Filing for bankruptcy doesn’t provide a “get out of debt for free” option. Many people are surprised to realize they will still have to pay some of their outstanding debt and filing fees. To get an idea of the Chapter 7 cost and Chapter 13 cost, consult with an experienced attorney near you.