Tag: Chapter 7

If You Need to File Bankruptcy, Don’t Wait

in Bankruptcy

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.

Setting yourself up to fail: Filing “Pro Se” Bankruptcy

in Bankruptcy

Yes, as with all legal matters in the United States, you are allowed to file for bankruptcy protection yourself and you can usually find the forms online or in a do it yourself workbook that you find at local bookstores or online. You are allowed to file “pro se” in bankruptcy court, just as in all other courts. As the saying goes though, just because you can do something, doesn’t  mean you should.

Bankruptcy Law is complicated.  It is a hybrid blend of the laws of the State of Georgia and Federal Government.  The amount of time you spend learning and researching the law, completing the mountains of forms and taking time off from work to appear in court pales in comparison to the extremely costly mistakes you can easily make by not hiring a competent bankruptcy attorney.

Bankruptcy Laws can vary from state to state

The books you purchase and forms you find in those books and online can make it seem to be a simple enough process, but that’s the point. It may even look like you will be saving some money by not hiring a competent debt relief attorney. However, the truth is quite the opposite. The laws are  very complicated. As mentioned previously, bankruptcy is a hybrid type of law that blends state law with federal law and what you can do in one state may not be what you can do in others. There is a high likelihood you will omit something important, make a mistake on the means test or say or do something that will cost you your home, your car or other assets, including your retirement savings. Losing tens or hundreds of thousands of dollars in an effort to save a few bucks is a very real possibility.   

The reality of Filing “Pro Se”

Once you file for Bankruptcy “pro se”, there is a high likelihood you will be faced by mountains of paperwork being filed on behalf of your creditors by attorneys whose job is to get the absolute best deal for your creditors as they possibly can.  These attorneys will work tirelessly and ruthlessly to ensure that your bankruptcy fails and that your creditors can resume harassing and collecting from you. Beyond the creditors attorneys, you will also be opposed by a trustee who is a highly trained attorney.  It is the trustee’s job to secure as much of your assets for your creditors as possible. Just because you’re not an attorney and don’t know the law doesn’t mean the creditors’ attorneys, the trustee or the judge will take it easy on you. You are still expected to know the United States Bankruptcy Code and the procedures of the bankruptcy court, including the local procedures of each individual federal bankruptcy judge.  

Investing in your future

The low cost of being represented by a competent bankruptcy attorney is one of the best investments you can make for your future.  Beyond not having to learn the many aspects of the law that your attorney is familiar with, it’s reassuring to have someone on your side who knows how the bankruptcy process works and can guide you through it successfully.  Beyond knowing the law, the attorneys at Harmon and Gorove have a long and successful relationship with many of the creditor attorneys and all of the current Chapter 7 and Chapter 13 trustees in the Newnan Division, all of whom know not to try to take advantage of our clients.

Hiring a Competent Bankruptcy Attorney

The experienced attorneys at Harmon and Gorove can give you advice based on your individual circumstances. Their decades of experience aren’t something you can get from a form you find in the internet. Do yourself a favor and invest in your future. Contact the competent and compassionate attorneys at Harmon and Gorove today for a FREE consultation.  Let us help you get your life and your financial freedom back from greedy creditors.

Cramdown: reducing the principal on secured debts

in Bankruptcy

When considering filing a chapter 13 bankruptcy, you may find yourself in the position to be able to reduce the principal balance of a secured debt to the actual value of the property (car, household item, etc.) it is secured by. When you reduce this amount of debt in this way it is known as a “cramdown” and can be a very valuable tool in your bankruptcy case that can potentially save your automobile, real estate investments, and other personal property you have pledged to secure a debt. Because of the way the law is written, you aren’t allowed to use the cramdown provision on your primary home  but using it in other aspects of your financial life can net massive savings.

When your attorney initiates a cramdown, you’re taking the value of a secured item like a car and reducing the balance you owe in order to match the item’s true book value. When this happens, the crammed down amount is then placed in your unsecured debt in your Chapter 13 case. A cramdown can be extremely beneficial in certain cases and might allow you to pay only a small percentage of your unsecured debt.  Filing things this way could result in all of your unpaid unsecured debt being discharged at the conclusion of your Chapter 13 case. There are many other advantages to cramming down your loans with a Chapter 13. This includes reduced interest rates, the potential to stretch the payments across a greater period of time which might very well reduce monthly payment amounts to a more affordable level. Another fantastic benefit is that you can escape liabilities on any deficiencies by using a mortgage cramdown on investment real estate.

As with much in life, the cramdown in a Chapter 13 seems often seems too good to be true. While this is not the case, it does come with certain guidelines that were passed by Congress to place certain restrictions on how, why and when you can initiate a cramdown. The cramdown restrictions to remember are the 910 Day (roughly two and a half years) Rule on car loans, the One Year Rule on personal property (think TVs, furniture, etc.), and the restrictions on investment real estate mortgages.

The attorneys at Harmon and Gorove are extremely experienced in using cramdowns to the benefit of their clients.  With decades of combined experience, our team can help you find out of you qualify for a cramdown in a Chapter 13 and help you successfully navigate the intricacies of a Chapter 13 Bankruptcy so that you may emerge on the other side debt free.  Call our office today to set up a free consultation with an experienced and compassionate Chapter 13 Bankruptcy Attorney.

How do I find a good Bankruptcy Attorney?

in Bankruptcy

This is a very important question, especially from people that haven’t ever had the need to hire an attorney or who are considering bankruptcy for the very first time. Depending on where in the State of Georgia you reside, there can be any number of options.  Finding a competent Georgia Bankruptcy Attorney is the most important factor in the outcome of your case. Below, we add a few bits of extra information to help you know that you have chosen the best lawyer for you that can help you navigate your way through the bankruptcy process successfully.

Finding the RIGHT Attorney

First, and most importantly, you want to make absolutely sure that the lawyer you choose is a SPECIALIST in bankruptcy law. We can’t possibly stress the importance of this enough.  Much like medicine, the law is extremely specialized.  Having an attorney who focuses on specific types of law allows them to have the kind of expertise you need in order to make sure your case is given the attention it deserves and has the outcome you want.

The United States Bankruptcy Code is second in complexity only to the United States Tax Code and thus, only an attorney who is a specialist in bankruptcy can possibly know all the ins and outs of the bankruptcy code of the United States and the specific laws of Georgia.

You have likely found several attorneys in your area that practice bankruptcy.  The question is, how do you choose between them? Probably the most important attribute of the best bankruptcy attorneys are their timeliness. Because of the very strict timelines in the bankruptcy filing process and the large amounts of paperwork necessary, the lines of communication between you and your lawyer are very important. At Harmon and Gorove, we pride ourselves on responding to our clients’ most urgent needs quickly and providing expedient service to keep their case on track.

Aside from timeliness, you want to find a local bankruptcy attorney who is not only experienced in successfully filing bankruptcies, but who also has a good relationship with the bankruptcy trustees in your division. Because each bankruptcy division and judge can do things a little differently than the other courts, it pays significant dividends to have a team of lawyers that is highly knowledgeable about the workings of the court in which YOU will be filing for bankruptcy.

There are many ways to find a good lawyer who can help you file bankruptcy, which include getting in touch with your state bar association, the local bankruptcy court, or asking friends or family who have filed before. Another good way is to just drive around and see which bankruptcy offices are actually open every day. Many of the bankruptcy attorneys you see advertising in the area only have satellite offices that are rarely staffed and if you do hire them, you likely won’t see them after the initial consultation.  Their attorneys work out of a centralized office somewhere in Atlanta and you definitely won’t see them walking through downtown, your kids won’t go to school with their kids and grandkids, and they won’t be at the high school football game on Friday night. Your attorney may not even show up at court with you, hiring a fill-in lawyer because you simply aren’t worth their time.  Finding an attorney that doesn’t just come in to the community to take your money just makes sense. Our attorneys at Harmon and Gorove are specialists who deeply care about the success of each client’s case. OUR attorneys will be there, by your side, every step of the way. We answer our own phone, we give you our direct emails and WE show up at court with you.

If you are looking for an attorney to help you through the bankruptcy process, give us a call to schedule a free consultation and let us show you why we’re the BEST choice to help you through the bankruptcy process.

Garnishment? My paycheck? Really?

in Bankruptcy

The long and short of it is, yes, garnishment of wages can happen to you.

Finding yourself in a situation where you are experiencing financial difficulties can often create an immense amount of stress and people who find themselves in this unfortunate situation often don’t know who to turn to. When you have exhausted your other options one of the best solutions is to file for bankruptcy protection with the help of a qualified Attorney.

One of the concerns people face when dealing with financial hardship is the reality that your wages may be garnished by a creditor. If this happens, it magnifies the burden and will likely pose even greater problems than you were previously facing. Depending where you live there are federal and state laws in place that limit the amount that creditors can receive in a garnishment. However, when money is already tight any income you lose will have a dramatic effect on you.

When creditors seek a garnishment, they must first file suit in court and notify you of the pending legal action. Generally speaking, in Georgia, creditors can take no more than 25% of your disposable income or the amount that is above 30 times the federal minimum wage, whichever is less.

Rather than continuing to deal with unnecessary stress, many consider filing for bankruptcy protection as it causes all of the collection actions to cease immediately, under penalty of law.  In Georgia, we may even be able to recover some of your garnished wages. All of your creditors collection actions will be put on hold until your bankruptcy status has been determined and your case discharged. While many people view bankruptcy as giving up, we look at it as a form of relief when there are simply no other options available.

Filing for Bankruptcy allows you to get your finances back on track to give you more freedom and peace in your life.  When filing for Bankruptcy it is important to seek out a highly qualified attorney who SPECIALIZES in filing consumer bankruptcies. The attorneys at Harmon and Gorove have filed more than 5,000 successful bankruptcy cases and will put their knowledge and experience to work for you.  Contact our office today to arrange a FREE consultation with one of our highly trained attorneys.

Chapter 7 or 13: Which Bankruptcy is Right for Me

in Bankruptcy

For people who are considering filing for bankruptcy protection the advice of a competent attorney can help them decide which type of bankruptcy is right for them. There are significant differences between a Chapters 7 and 13 bankruptcies and only the expert advice of an attorney trained in bankruptcy can help you decide which route to follow.  

Generally, a Chapter 7 bankruptcyis known as a fresh start or straight bankruptcy. Chapter 7s allow for the discharge of unsecured debts like credit cards, utility bills, medical bills, personal loans or other debts that aren’t being guaranteed by secured collateral. In Georgia, most Chapter 7s last between four and six months and most debt will be eliminated. The only types of debt that can’t be discharged are student loans, some criminal penalties, child support arrearages, recent tax debts, Alimony, and other types of non-dischargeable debts that can be discussed with your attorney.

Chapter 13s are a debt reorganization plan which will last at a minimum 36 months to a maximum of 60 months. Each month, the debtor makes a payment to the Chapter 13 trustee that consists of all of your disposable income left over after paying reasonable living expenses each month. The Chapter 13 Trustee uses this money to pay your creditors and your attorney according to a plan which is filed with the bankruptcy court.

What can go wrong with a Chapter 7

The difference between a Chapter 7 Bankruptcy which provides near immediate relief, and Chapter 13 plan, which  lasts 3 to 5 years is a significant difference. When you come in to speak to one of our attorneys, you are relying on their significant experience to help guide you towards the best outcome for yourself and your family. There are significant ramifications for filing the wrong type of bankruptcy. One of the first major problems is filing a Chapter 7 bankruptcy when you’re not eligible.

There are income guidelines that vary from district to district and state to state which ultimately decide whether you can file a Chapter 7. In the bankruptcy reforms laid out by congress in 2005, they created a means test. The means test is a mathematical formula used to determine whether someone is able repay a portion of their debt over time. This complicated figure is based upon income, the size of your family, and certain IRS guidelines for everyday necessities such as housing, food, clothing, grooming, transportation and other odds and ends. There’s also the a second part in the test. This determines whether you have the available income per month to repay your creditors. If you fail either these tests, then you will be forced to convert to a Chapter 13 or your case will be dismissed.

What Can Go Wrong in a Chapter 13

There are also some issues that come up in filing a Chapter 13 Bankruptcy. If your income is too low to provide the necessary funding for a Chapter 13 plan your case will likely never be confirmed and you’ll be back to square one. Often people trying to save property such as a house or a car propose Chapter 13 plans that are completely beyond the scope of their ability to fund.

Knowledge is Key

A good attorney who is an experienced bankruptcy practitioner can advise you on when a Chapter 7 or a Chapter 13 is unfeasible. There are some attorneys out there who will try to push you into one type of bankruptcy or another for reasons ranging from the ability to make more money off your case to just trying to make the client happy.  The attorneys at Harmon and Gorove will ALWAYS advise you on the best course to take regardless of what our fees will be and we will do our best to explain to you why a case may or may not work out.

There are many variables that go into deciding whether a Chapter 7 or Chapter 13 is appropriate for you and your financial goals. This isn’t a simple issue that can be taken lightly. Attorneys must have the expertise and experience to know the intricacies of Chapter 7 and Chapter 13 bankruptcies. It is a massive disservice to clients to file under the inappropriate section of the bankruptcy code. Doing so is going to lead to a terrible result for the client that could end up causing the client significant financial loss. This is where the expertise of a competent attorney is invaluable. You should always be cautious about using an attorney who doesn’t have significant experience in both Chapter 7 and Chapter 13 bankruptcies. The attorneys at Harmon and Gorove have filed more than 6,000 successful bankruptcy cases and provide expert advice on how you can best secure your financial future. Contact us today for a free consultation with our caring and competent staff.