Bankruptcy

Someone Told Me I Can’t File Bankruptcy…

Today, so many people are worried that once they have decided to seek help someone might tell them they can’t file bankruptcy.  Whether it is the judge, a trustee or a creditor, They fear that someone might reject their bankruptcy petition all together or tell them they can’t file bankruptcy and put the right back at square one.  The long and short of it is that the chances of this happening are very very slim. This is why you hired an attorney to begin with. Trying to file a case “pro se” might lead you down a road full of serious legal problems, but filing with an attorney is definitely the right choice.  Your attorney’s job is to guide you through the process and make sure that your situation is fully vetted. The attorney will know your entire situation so that when your bankruptcy petition is filed with the court you will be in full and complete compliance with the bankruptcy code and the local rules set out in each judge’s courtroom. Whether it is a Chapter 7 or a Chapter 13 bankruptcy, your attorney will make sure that it is smooth sailing through the bankruptcy process.  

Like I stated earlier, the road is usually smooth and clear when you hire an experienced Newnan Georgia Bankruptcy Attorney. The only time you might find yourself facing problems in your bankruptcy is when you don’t disclose your entire financial history up front to your attorney and the court.  Your mother probably used to tell you that honesty is the best policy and if she did, she was right. That proverb holds true in Bankruptcy as well. You have to tell your attorney everything that’s going on in your financial life.  Whether you had a car accident and have the potential to recover money from it, you’re going through a divorce or you are being sued for something that you may be liable for, you have to disclose this to your attorney from the start.  Your attorney is best able to serve you when they have to complete and total picture of your financial situation. When that is the case, your attorney can almost always guarantee smooth sailing all the way through your bankruptcy case.  

If you are behind on your bills, being harassed by creditors or just feel like there’s no way you’re going to get ahead, make an appointment today with one of our compassionate and experienced bankruptcy attorneys at Harmon & Gorove. We will work with you to get you a fresh start in your financial life and get your credit back on track after bankruptcy.  

Positive Aspects of Bankruptcy

Bankruptcy has the ability to solve a bevy of financial problems but it is often associated with negative thoughts and reactions.  When the prospect of filing bankruptcy appears on the horizon, it is easy to only see the negative. If you have determined that bankruptcy is your only way out, it is important to focus on the positive impacts that bankruptcy can have on your life.  Remember, the night is always darkest just before the dawn and there are many positive aspects of bankruptcy protection.

Yes, there are negatives to Bankruptcy

Filing for Bankruptcy protection will often stay on your credit report for a minimum of 7 years and may hang around for as long as 10 years. There is also the very real possibility that bankruptcy could make it more difficult and expensive to finance a car or a home for a few years. It likely also will be difficult to get unsecured lines of credit like personal loans and credit cards for a time after your bankruptcy. Some people also feel embarrassed for having filed bankruptcy and many put it off because they feel shame by having to resort to bankruptcy.  Let me remind you though, if you find that bankruptcy is your only way out, you should not wait to file.  There are many circumstances where bankruptcy isn’t appropriate for you and your situation but until you contact a competent Newnan, Georgia Bankruptcy Attorney, you won’t have the right information to make your decision.

But there are also many positive aspects of Bankruptcy

First things first, filing for bankruptcy will allow you to discharge your debts if you follow the bankruptcy plan. In the majority of situations, you will also be able to retain most of your property if you want to keep it.  Once you have eliminated your debt you will be free to chart your new financial future in your own way. A lot of people learn significant life lessons from the bankruptcy process and it allows you to adjust your priorities in the least painful way possible.  Bankruptcy also allows you to stop collections action through the Automatic Stay. This keeps creditors from harassing you over unpaid debts and allows you to devise a plan to tackle your debts and re-organize your life around your new financial reality. There is even the possibility that you could improve your credit score by filing for bankruptcy. In the end, perhaps the most positive aspects of bankruptcy is peace of mind and knowing your finances are getting back on track and you’re able to successfully plan for your goals and your future. Filing bankruptcy puts you back in control of you life and protects you from the actions of unscrupulous creditors.

If You Die With Debt, Here’s What Happens

When you are making your plans and enjoying the present with your loved ones you build a legacy.  One of the things that people often don’t consider when building that legacy is the debt that they may leave behind in the event that they die with debt.  Unfortunately, many of your debts can and will out live you and the people you leave behind could be affected by those debts. If you have already created a will you will likely have named an executor who will be responsible for taking care of your debts and disposing of your assets when you pass.

When I Die, What Happens to My Debts?

If you die with debt, these are the most common types of debts that can have an impact on the ones you love:

Student Loans: If your student loans were obtained from the Federal Government, they will be forgiven upon your death.  If you took out private students loans, they can recover money from your estate or from a co-signer or guarantor. In the event that your estate has exhausted its resources, the private loans will also be wiped out.

Home Loans and Mortgages: If you own a home jointly with someone else or you wish to pass your home to a loved one and you die with debt on the property, they are responsible for continuing to pay your mortgage(s) after you pass. While the government protects you from having the loan called in upon your death, the note will have to continue to be paid until those you leave behind decide what to do with the property

Car, Boat, Motorcycle Loans: If the payments on these types of loans are not made then the person who lent you the money can take possession of the vehicle.  The person you leave the vehicle to will have the option of continuing to pay on the note but there are other probate concerns that often arise with transfer of title but that is something you may need to speak with a qualified probate attorney about.

Credit Card Debt and Medical Bills: While these types of debt are not secured by collateral (a car, house, etc.) if your estate has remaining funds they can be recovered by the credit card company or medical firm.  If the estate has no remaining assets then your debts are generally wiped out. In the event that that you have a JOINT credit card account, the non-deceased person will be on the hook for the debt incurred by you.  This generally doesn’t apply to an authorized user but if the primary passes away and you do not intend to continue to pay on the credit card, you shouldn’t continue to use that card.

Taxes: If you die with debt owed to the IRS or your state department of revenue it can create a headache for those you leave behind.  If you die owing back taxes and you have filed jointly with a spouse, your spouse is liable for the entire amount of the taxes.  Additionally, the IRS can try to collect any tax debts owed from your estate, even if you did not file jointly with your spouse. The IRS does allow certain exemptions but it would be advisable at that point to consult a qualified tax attorney to discuss your options.  

These situations can be avoided

If you need to file bankruptcy, get help now. Reach out to a qualified bankruptcy attorney, tax attorney or financial planner to discuss your particular situation. Ridding yourself of debt before you pass might be a good option for you.  The best thing you can do for your loved ones is to prepare your estate so they aren’t hit with unpleasant surprises in a time of profound grief. At the very least, you should have a last will and testament in place. You should also keep those you love apprised of your financial situation.  Provide them with a list of assets and liabilities, where you keep safe deposit boxes, a list of passwords and combinations to safes and lockboxes to assist your loved ones in closing out your affairs when the time comes. While your creditors are allowed to contact your heirs about collecting on debts when you retire, they must follow the guidelines set out the the Fair Debt Collection Practices Act.

Protecting Assets in Bankruptcy

Many people believe that bankruptcy is a sign of hitting rock bottom but they would be wrong.  Bankruptcy is a tool in the law that can be used to actually protect assets and wealth from creditors.  Many famous and wealthy people have filed and survived bankruptcy with many emerging from bankruptcy and building an even greater net worth than they had prior to filing. While you may not be a celebrity or even extremely wealthy, bankruptcy bankruptcy can be a useful financial tool to help you get back on track. Yes, being financially depleted and bankruptcy often go hand in hand but It doesn’t have to be that way.  In other words, you don’t have to wait till you’re broke in order to file bankruptcy. In fact, it would probably be a better financial decision to file before you hit rock bottom.

Don’t wipe out your savings to stave off bankruptcy

Nearly 60 percent of Americans have saved less than one thousand dollars for an emergency. It is a side effect of the rising cost of living and the stagnation of wages in this country. If you’re one of the lucky people who actually do have a savingings, it would be highly advisable to file for bankruptcy before you wipe that savings out. In many cases a good bankruptcy lawyer will be able to find a way to protect most or all of your savings, especially savings you have in retirement accounts.  Any payments you make to creditors that would otherwise be discharged in a Chapter 7 are effectively just a donation to that creditor. Beyond that, even if you wanted to pay your creditor, any payments made to a specific creditor within a certain period of time of a bankruptcy filing can also be “clawed back” by a bankruptcy trustee which negates what you were doing to begin with.

DO NOT use your retirement funds

Your retirement account is a nest egg that you and/or your spouse has been building for decades. There are extremely few circumstances where it would be advisable for you to use your retirement account to pay down short term debts.  Virtually every retirement account in use today can be exempted from the bankruptcy which means you get to retain the value of that account for its intended purpose, your retirement.  Generally speaking, it makes much more financial sense to file bankruptcy to liquidate your retirement savings.

Don’t sell off your assets

The majority of Harmon and Gorove’s clients are able to keep most or all of their assets. Harmon and Gorove’s attorneys work hard to protect your assets from the trustee and creditors. Selling your assets to pay off creditors isn’t something that you have to do in most cases.  The attorneys at Harmon and Gorove work hard to make sure that your assets stay your assets. Protecting your assets in bankruptcy does require a good deal of expertise and planning, especially if you have a good deal of assets. If you have a significant number of liquid assets or rarer assets like a cash value life insurance policy or a pending lawsuit in which you could recover money, talk to a lawyer as soon as possible. Timelines are important in bankruptcy and anything you do to delay could cause you to lose irreplaceable assets. You should always be upfront with your lawyer about what assets you have, knowing beforehand is imperative to your ability to retain your assets.

Don’t ever give up

Bankruptcy provides many people with a clean slate.  Scrambling to sell off your assets or using up your savings isn’t using your money wisely, it’s panicking and making decisions that can change your life for the worse. Most people can see the need for a bankruptcy on the horizon. The warning signs are usually there long before people hit rock bottom. If you’re facing debts that seem insurmountable you should consider speaking with an experienced bankruptcy attorney before you get to the end of your rope. The staff of Harmon and Gorove are highly trained in exemption planning and asset protection.

Don’t wait

When your Bankruptcy is concluded, you will want to have as many tools to restart your financial life as possible. Keeping your retirement account, cash savings, homes and automobiles will provide you a new and fresh means of getting ahead after a bankruptcy. If you wipe out your assets before you file bankruptcy, the fresh start that bankruptcy provides won’t be as effective and won’t give you the advantages you need to get ahead.  Contact the attorneys at Harmon and Gorove today to see how we can help you get rid of your debts and get you started down a new path to financial success.

If You Need to File Bankruptcy, Don’t Wait

If you are in financial trouble and you see no other way out, do not wait, speak to an attorney and if they recommend it, file bankruptcy immediately. The longer you put off the inevitable the more it will cost you. It will likely cost more in attorneys fees due to the increasing complexity of your case.  It will also cost you in terms of your credit score.  Yes, filing bankruptcy will have a negative impact on your credit, but it is just one factor in how they determine your overall creditworthiness. The longer you wait the lower you score will go, period. In some situations, it may be advisable to delay filing for a period of time. Most of the time though, once you know you need to file bankruptcy, don’t wait.

Matters of Importance

If you have been sent foreclosure paperwork and you have exhausted your other options, you are out of options and you must file to stave off the foreclosure. The same rings true with evictions, lawsuits, repossessions, and garnishments. Once you get the notice filing bankruptcy is the your last and best option. Filing bankruptcy immediately will mitigate the adverse actions of your creditors.

All of the aforementioned situations are matters of extreme importance. Competent bankruptcy lawyers will give you a breakdown of the bankruptcy timeline, including all the inflexible deadlines that must be met before and after you file. Your attorney is an expert in bankruptcy law; when they tell you that time is of the essence it is imperative to get them what they need so they may take action on your behalf as soon as possible.

Matters of Timing

In certain cases, it may benefit you if you wait to file until a certain date, your attorney would discuss this with you and explain why it is advantageous. An example of such a time would be, if your foreclosure is scheduled at a distant enough date, it may be financially savvy to delay your filing to include the coming months in your Chapter 13 plan.

In other instances, if you have taken on a large amount of debt recently or know that you will need to incur some debt in the coming weeks or months, it may be better to delay your filing until you can include those debts as well. You might also have recently made a significant transfer of property, which would affect the timeline of you filing for bankruptcy.

These situations are all less common issues. In the overwhelming majority of Chapter 7 bankruptcy cases, the sooner you file, the better.

If you’ve run out of options, don’t delay, file bankruptcy.

The faster your case gets filed the faster your credit will be able to heal. I simply can’t tell you how important credit can be in your life in today’s world. The sooner your debts are discharged, the sooner you can get back to focusing on the things in your life that actually matter. If you know bankruptcy is your only option, don’t procrastinate. Start the process immediately by calling the knowledgeable attorneys at Harmon and Gorove. They can start the process for you immediately.

Bankruptcy: Don’t Make These 6 Mistakes

The prospect of filing for bankruptcy protection is a serious decision that isn’t to be taken lightly.  Generally speaking, if you file bankruptcy the right way it will have very profound positive impacts on your life and allow you to restructure your finances in a viable way going forward. However, if it isn’t done correctly you can find yourself fighting for years to come to clean up the messes and mistakes of a failed bankruptcy. Often, we see people who come through our office who have experienced such failed bankruptcies and we are stuck cleaning up an expensive mess made by unqualified attorneys who filed things incorrectly or simply didn’t know what they were doing. Below, I list the top 6 mistakes that people commit when filing for bankruptcy,

They go to a “BIG BOX” bankruptcy firm  to file their case.

There are many great attorneys out there that work for these “big box” firms and they are wonderful, caring people. The only problem is, when you’re looking at these firms, you often have somewhere between five and ten attorneys juggling 150-200 or more cases a month. The long and short of this is, they can’t ever get to know your case PERSONALLY. They will pass everything off to a secretary or paralegal that just files the paperwork and never takes the time to actually get to know you and your case. Our office handles several clients a month who have had their case filed by a “big box” bankruptcy mill only to see it get dismissed because of some technicality or missed deadline by the untrained and overwhelmed staff. If you’re sitting in some rarely staffed satellite office or the waiting room has 50 chairs in it, you’re probably not going to get the personalized service you need and deserve. If getting good customer service from the same people ever time isn’t that important to you, you might be a good fit for a one of these types of firms.  The biggest difference between a “big box” firm and a local bankruptcy firm is service. You aren’t going to pay them any less in the long run but you definitely won’t have access to your attorney like you would going with a smaller firm.

Hiring an attorney that doesn’t have actual BANKRUPTCY experience.

They may be your buddy you went to high school or college with, they might be a general practice attorney that has been in the same spot for 40 years, they might even be $100 less than the bankruptcy practitioner up the street but don’t let them fool you. Bankruptcy laws change CONSTANTLY and the only people who keep up with those changes are the people who file bankruptcies on a regular basis.   Like doctors, attorneys specialize in certain aspects of the law because the law complicated and no one has time or the ability to be able to practice 10 different types of law, especially if they’re concerned about not making mistakes. Don’t end up being a lab rat for some attorney who THINKS they might be able to handle filing bankruptcies, your financial future depends on it.

Using a bankruptcy petition preparer service.

There’s an old adage out there that I love to use.  NEVER hire a discount plastic surgeon or a discount lawyer, the damage that a hack can potentially do just isn’t worth it. Hiring a petition preparer may be cheaper but it’s usually just an accident waiting to happen. While I list 6 major mistakes you can make, this one should probably be at the top of the list.   People often go through their case, sometimes for 5 years or more, thinking that everything is humming along smoothly.  Sadly, people often find out after the fact that a debt wasn’t reaffirmed correctly or paperwork was filed incorrectly. Petition preparers are just supposed to type and in the State of Georgia, they are not allowed to give legal counsel.  If something goes wrong, you have no recourse since you agreed that all they were doing was typing, it was your responsibility to handle everything else. We have cleaned up the mess of hundreds of people who used a petition preparer. These people often find themselves being investigated for fraud by the U.S. Department of Justice, facing the threat of losing a home they didn’t know they had equity in or even ending up in the wrong type of bankruptcy altogether.  Generally speaking, you can start a Chapter 13 for around $75 and a Chapter 7 for around that same price. There is literally no reason to not hire an experienced Bankruptcy attorney. In bankruptcy you’re dealing with the federal government and all its resources. Discount shopping for bankruptcy could leave you in a massive mess.

Not fully listing your assets.

When it comes to your attorney and your bankruptcy you have to tell the truth, the whole truth and nothing but the truth. If your name is on the title you absolutely HAVE to list it in your case.  Your trustee doesn’t care if it’s your grandmother’s car and she’s the only one who drives it, if your name is on the title you have to list it. Committing bankruptcy fraud is an actual criminal offense, thousands of people are investigated each year for bankruptcy fraud and hundreds of them go to FEDERAL PRISON each year for committing it.

Transferring property out of your name before you file.

Transferring a house or a car to someone else out of your name isn’t going to help you, in fact, it’s one of the biggest mistakes you’ll make. Trustees have broad investigatory power and they WILL look into your background.  If you sold your house to your aunt for $1,000 three weeks before you filed bankruptcy the trustee WILL find out. Sometimes transferring things isn’t a big deal but sometimes it is.  Only a competent attorney who specializes in bankruptcy can tell you which one is the case.

Paying debts to family members or friends before you file.

This is one of the biggest mistakes we see when people come in for a consultation. Obviously, you don’t want to stiff your Aunt Shirley out of the $500 bucks she loaned you to make the down payment on your car. Guess what, the court doesn’t care. In fact, if they find out you paid anyone off in full right before you filed bankruptcy whether it is a friend, family member of a title pawn, they’ll go after them to get that money back and distribute it to your creditors. Paying off one person while bankrupting on someone else is called a preference payment.  Preference payments are not legal. Meeting with a qualified attorney can help you understand this process and can also explain when a trustee can attempt to collect preference payments from friends and family member and when they can’t.

Speaking with a competent bankruptcy attorney in Newnan or LaGrange doesn’t cost a dime. Our attorneys will meet with you at a time that is convenient for you FREE OF CHARGE. We will do a complete examination of your financial situation and give you our recommendations for how to best meet your financial goals. Don’t make a major financial mistake that could haunt you for years to come.