Tag: Chapter 7

What does a Bankruptcy Lawyer Do for You?

I don’t work for free, at least not often.  After all, my kids have to eat too.  That said, you’re looking at filing bankruptcy because you don’t have much money, or any at all. So…What can I (a bankruptcy lawyer) do for you?

Lots of people think I’m just a paper pusher.  Don’t get me wrong, I do handle lots of documents but that’s missing the forest for the trees. So besides pushing paper, what does a bankruptcy lawyer do for you?

Assessment

As a bankruptcy attorney, it’s my job to determine whether or not bankruptcy is right for you.  Some lawyers will always say bankruptcy is right.  

That’s because they want your money and don’t really care about you. While I want to earn your business, I also need to sleep at night.  

The fact is, Bankruptcy won’t help everyone and if you’re one of those people, I’ll be honest with you.  I’d rather not have your money than lie to you to make a quick buck. 

Beyond the issue of ,”is bankruptcy right” there’s also the issue of timing.  

Is it the right time or should I wait a few months?

Should I file with or without my spouse?

Is Chapter 7 or Chapter 13 going to be my best bet?

How will my bankruptcy affect my family and business associates?

None of these so called forms can make those kinds of determinations, that’s where I come in. 

Avoidance

A good bankruptcy lawyer helps you avoid mistakes, sometimes big ones, when you’re completing your petition.  

Ill founded assumptions and bad choices can cause significant harm to your financial situation.  Got equity in your house you want to keep? Better not file Chapter 7. Get nuanced things like this wrong and suddenly you’re in over your head and face losing your assets. 

Speaking of assets, if you get the exemptions wrong, you may give up more than you have to, especially if you’ve moved recently.  

After you file, you have to provide paperwork like tax returns, pay stubs and other forms to the trustee.  Most of the trustees all have certain ways they want things submitted.

Whiff on any of these and your case may be dismissed. 

Understanding

Bankruptcy can be a challenging process and is fraught with potential landmines.  I’m here to explain how it works, what happens and how it will affect you.  

Bankruptcy is stressful without having to worry about what happens when you go to court and how the trustee will administer your case.  

A good bankruptcy attorney is able to anticipate what’s going to happen and explain the process to you in a way that makes you feel comfortable. 

Finish the Drill

Filing for bankruptcy is the easy part.  It’s the rest that starts to get hairy.  If you left a creditor off your bankruptcy or forgot to disclose an asset we can help.

We are there to make sure your filing fees get paid and that the right people get served with notice of the bankruptcy in a timely manner.  

We are here to make sure that liens that can be wiped out get wiped out.  That’s a lot more complicated than just picking up the phone to let the lienholder know you’ve filed…and beyond that, there are no forms for stripping liens. 

Are you trying to keep your car? I can walk you through the positives and negatives. Do you go the redemption route, reaffirm your existing loan or just surrender your car.  

What happens if you don’t remember to complete your paperwork at the end.  There’s more than just filing the paperwork at the beginning.  You have to complete debtor education courses and other paperwork at the end.  

We’re even here for you after the fact.  What happens when an old creditor tries to come back and collect after the bankruptcy is over? 

I’m here for you from the day you file until your case is complete and then beyond.  It may sound like a lot to pay an attorney to file your case, but I’m more than just a paper jockey.  We add real, lasting value to what’s likely to be the biggest financial decision you ever make outside of buying a home.  

Call us today to discuss.

You’ve been served

Ding Dong…..the doorbell rings.

There’s a Sheriff’s deputy at the door.   

I’m not here to arrest you sir, you’ve committed no criminal act….but you’ve been served.

Served with suit papers.

Now what? Well, read ahead and let’s see what we need to do now. 

Look around

1. Look at the top:  At the top of the suit there will parties listed. It’s generally right below the name of the court from which the complaint originates.  The Plaintiff is the entity who is suing you:  they have a reason to seek the court’s help.

Do you recognize the name at the top? Are they a known creditor?   If you don’t know the name, does the complaint explain why the plaintiff is trying to sue you or what claim they seek?

2.  Look for validation:  At the end of the complaint there may be an attachment that seeks to validate the claim.  It’s generally a sworn statement that explains the right of the plaintiff to seek damages against you.  

3.  Check the Calendar: Once you’re served with a suit, there is a set amount of time you have to respond,  generally around 30 days. However, most complaints will have a date for a hearing so it could be longer but it won’t be after that date. 

4.  Timeliness:  There’s a statute of limitations in Georgia. On many debts, the statute is 4 years from the last activity on the account.  If it’s been more than four years since you either paid or charged on a credit card, you likely win the suit by filing an answer. Some debts though, like tax debt or mortgage debts, can last longer than 4 years.

5.  Check the prayer:  No, this isn’t church but the plaintiff will add what’s known as the prayer to the suit. The prayer is at the end of the complaint but it may not be the last page of the complaint.  Look to see what the plaintiff wants (that’s what the prayer is) and see how much money could be tied up in this.  Also check to see if they’re alleging fraud. If they are, it can have long standing repercussions. 

How to fight back

Once you’ve moved through these five steps, you need to decide what you will actually do. 

Nothing

This is a bad idea. If you do nothing it will likely result in a default judgement against you.  If your creditor wins a default judgement the court will assume you owe the money and they will enter a judgement against you.  

A judgment entitles the creditor to use the government to get its money.  In the Georgia, it means the creditor can take money from bank accounts, file a judgment lien, and garnish wages.

A judgment is enforceable for 10 years and can be renewed in Georgia.

File an answer

If you file an answer, it at least shows the creditor that they’ll have to prove their case.  If you have a good defense strategy you could actually win. 

There are resources out there for people to use if they want to fight a lawsuit without hiring a lawyer.   But as the Stephens County Court website says:Judges cannot make exceptions for litigants without attorneys. You could lose your case if you do not follow the correct procedures.  Know the rules!”

If you are going to be your own lawyer, you have to what a lawyer knows.

Filing an answer gives you options and sometimes you can negotiate a settlement (if you actually have the resources).  Chances are though…If you couldn’t pay it then, how will you afford it now. 

Find an ACTUAL debt solution

You are getting sued and like it or not, this probably isn’t the only creditor out there looking to recover.  This lawsuit should be a red flag. 

  • Is this suit just the beginning of a trend?
  • How many creditors are in line to serve you with suit papers?
  • Will you actually ever get out of debt with this piecemeal approach?

 

The long and short of it is, it’s time to seek help. It’s time to see a bankruptcy attorney.  Even if you don’t expect to file a bankruptcy case, we can often go over what’s happening in your situation and give you an honest and frank assessment. 

But don’t forget. You’ve been served. Mark your calendar: you have a limited time to take action before you end up with a judgement against you.  It’s a lot easier to get your finances cleaned up before you have a judgement against you. 

Give us a call.  We’re here to help. 

Return on Investment

Return on Investment

What if I told you you could get a return on investment of more than 2,000% in just 4 months? 

Don’t worry, I’m not a snake oil salesman and I’m definitely not the Wolf of Jefferson Street.  I’m a bankruptcy attorney and what I’m telling you is absolutely true.  

See, I calculated the average cost of a Chapter 7 Bankruptcy in my office which is somewhere between $1,500 and $2,500 dollars.  I then took the average amount of debt that we discharge, which is right around $50,000.  Then I looked at the average amount of time it takes for a Chapter 7 to run from start to finish.  When I ran the numbers, I got a return on investment of 2,602.70%. That’s a number Warren Buffett or Jeff Bezos would jump all over.  In fact, outside of winning the lottery or striking it rich at a casino, there’s no faster legal way to get that kind of return on investment anywhere. 

SHORT-TERM BENEFITS OF CHAPTER 7

The biggest benefit of bankruptcy is that you can stop paying any creditor that you wish to discharge.  No more credit card or medical bills. No more garnishments. None. Zero. 

Think about how much better your monthly budget would be if you could shave off hundreds or even thousands of dollars worth of bill payments.  

The day you file bankruptcy, the automatic stay goes into effect.  That stops all collections against you dead in their tracks. .

This means that unless it’s a car loan (and you want to keep the car) or a mortgage (and you want to keep the house) you don’t have to make another payment to any of your creditors. 

LONG-TERM BENEFITS OF CHAPTER 7

A Chapter 7 means that within 4-6 months, all your unsecured debt will be wiped out.  This will immediately increase your credit score.  Don’t believe me, ask the CFPB

Car loans, mortgage loans and home equity loans are secured by the property, and if you want to keep them, you’ll have to keep making payments.  

If you don’t want to keep them, you typically get somewhere between 3-6 months in that property before the bank repossesses it. You get to keep it that long without making a payment.  That’s a good deal. 

All in all, the benefits of filing a Chapter 7 are incredible.  

There’s almost no legal way to gain the kind of return on investment you get through bankruptcy.  With a small investment and the stroke of a judge’s pen, you can find yourself $20,000-50,000 better off.

Social Media and Bankruptcy

Social Media and Bankruptcy

Beware of Social Media

As lawyers, we have a love/hate relationship with social media.  Sure, many of us use social media in our own lives as well as to advertise and inform our current and potential clients.  Social Media and Bankruptcy can occasionally cause problems for our clients. 

We post pictures of vacations, shopping trips, the things we’re proud of and even how we look.  For most of us, this is benign.  We don’t have anything to hide, or so we think.  

We routinely tell people who are planning on going through a divorce to avoid social media.  It helps keep nerves from getting frayed and also helps us not say or do anything that could be misconstrued by our soon to be exes.

Just as you do in a divorce, you should also limit your activity on social media when you file bankruptcy. You may be thinking, “why does it matter what I post” and the truth is, it probably doesn’t…but creditors are getting desperate, and desperate people do desperate things.  

I will use an example here of a very high profile individual who filed for bankruptcy in the not so distant past, Curtis James Jackson III. You might know him better as 50 Cent. 

A Big Blunder

In 2015, Mr. Jackson filed for Chapter 11 bankruptcy protection. Chapter 11 is a type of bankruptcy used for the wealthy and for corporations. Everything seemed to be going well until right in the middle of it all, he posted several photos on a popular social media site. One photo was of a stack of money in his freezer, another had stacks of bills arranged to spell the word “Broke,” and a third one was of him surrounded by a significant amount of cash on a bed. Mr. Jackson said the bills were props but he had stepped in it nonetheless.  

Mr. Jackson claimed that the photos were there for him to maintain a certain image that he needed in order to continue to earn money in his chosen field.  The problem was, it looked to creditors, especially those who weren’t going to get much, that he was trying to hide assets or “live large.” Because of these photos, the judge handling his case called Mr. Jackson to court to testify and to re-evaluate his assets.

In the end, Mr. Jackson was able to repay his debts under Chapter 11 and emerge debt free and fully reorganized.  However, he could have faced a much worse fate if he’d been found to be hiding assets and his little stunt likely caused a great deal more expense than was otherwise necessary in additional attorney fees. 

Avoid Problems All Together

Your creditors likely don’t know you personally. They don’t know that picture you posted at the beach was for a work trip and that time you checked in at the airport on social media was so you could fly to see a sick relative. They don’t realize that the picture of you in the shiny new car was actually a rental you had while your old car was being repaired.  

In other words, just remember, be careful what you put out there.  You never know who is watching and how they’ll take what you’re doing.  To you it was benign and potentially even necessary but to them, it could look like you were trying to hide something…or worse. 

If you have questions about a bankruptcy, don’t hesitate to call us.  We’ve been doing this a while and we’ve seen it all.  Including creditors using social media to hound clients. 

Making the Stimulus work for You

Stimulus

To many, using your stimulus to file bankruptcy may seem like a strange use of the money.  In fact, that might just be the opposite.  

The American Rescue Plan Act was signed into law late last week that will provide most people in the U.S. yet another round of economic stimulus.  Those stimulus payments should be arriving any time now.  While there are some things that may ultimately prove to be more immediate needs, you need to consider whether investing your money in a bankruptcy is a good use of the funds.  

Most People Wait Too Long

Let me assure you, lawyers who practice bankruptcy law do it because they enjoy helping people.  I’ve worked in the world of high finance.  I used to represent big banks.  The work was daunting.  I never felt like I was helping anyone…because really, I wasn’t.  That’s why I left it.  I work every single day to help people get out of problems that most of them had no part in creating.  

The problem is, most of the people simply put up with the emotional challenges of debt for way too long.  They stay up at night, they throw good money after bad, they spend money they could be putting away for a rainy day trying to pay a bill that they’ll never get caught up on.  

So, why would paying for a bankruptcy help me? First and foremost, when you owe someone $10,000 or more and you haven’t made a dent in it in years, $1,400 isn’t going to do much to solve your problem.  You’ll throw away $1,400 dollars you could have spent getting yourself out of debt. 

You Need Long-Term Relief

No one started out to go down this path.  Everyone assumed when they took out the loan or swiped the credit card that they’d be able to pay everyone back, in full…but life happens. Things come up, people get sick, people lose jobs and when you’re already living paycheck to paycheck, that creates even more problems.  

At some point, the debt is just too overwhelming.  It’s hard to come to terms with that, but the sooner you do, the sooner you can start seeking the help you need and making decisions that will have a positive impact on your life going forward. 

What is “that point”

It’s hard to know when you’ve hit, “that point.  That’s why we’ve got some guidance here:

  1. Never wait until you feel that all hope is gone.  If you’re just barely hanging on, you’re not only risking your financial future, you’re putting your own mental and physical health at risk.  
  2. You need to consider more than just your creditors.  Yes, you feel obligated to pay BIG BANK CORP, but I can assure you, the CEO’s kids won’t go hungry…but yours might.  You have responsibilities to your children, your significant other, parents or in-laws and other family members.  How much are you taking away from them as you kill yourself to pay off your creditors. 
  3. There’s more than financial responsibilities there too.  Is all the stress from debt causing you to be emotionally absent from your children or your spouse? Is debt potentially causing you to jeopardize your relationships with your family and friends? 
  4. The one person everyone seems to be forgetting in all this is you? Stress kills.  You’re risking everything by being so stressed.  We already discussed your relationships and how stress from debt can ruin those, but you need to remember to take care of your physical and emotional health as well.  If you don’t, no one else will. 
  5. Finally, you need to realize  you need help when you start making bad decisions. Desperation can frequently result in us making poor choices that can make our situations even worse than they already were.    

 

You need to remember, you have options.  Good, solid, legal options that can help you moving forward. The good news is, you’ve got enough money to get the ball rolling thanks to the stimulus.  In the end, when you look at it purely in the terms of return on investment, you really can’t beat spending a few hundred dollars to rid yourself of tens of thousands of dollars in debt. If you’re ready to explore your options, call us.  Your initial consultation and financial analysis is 100% free. 

“Real Fast”

Real Fast

People call our office all the time wanting to talk to me “real fast.” Don’t get me wrong, I love speaking with my clients and everyone in our office is equipped to help…but the answer isn’t always so simple.  

And that’s because, quite simply:  There is no such thing as a quick answer to most bankruptcy questions.  Or rather, there are no good “real fast” answers about bankruptcy.

See, bankruptcy is one of the most nuanced parts of our legal system.  It is a blend of mostly federal law, with a bit of local rules and state law sprinkled in for good measure.  It’s why so many people who dabble in bankruptcy so frequently screw it up.  You’ve got to know your stuff to do bankruptcy the right way.  

Everything depends on the facts

Your facts. 

In order to help you out and provide you with good advice, a bankruptcy lawyer needs to know a lot of facts about your situation. 

Have you filed before, did you get a discharge, how long have you lived here and where were you located before?

What all do you own, are you the sole owner or is it joint tenancy? 

What’s your income and how do you make it?

Do you have dependents or do you owe taxes or domestic support?

The list goes on.

In Bankruptcy, Quick is almost always dirty

The best doctors take their time with a patient, good builders measure twice and cut once…

Good lawyers take the time to examine what’s happening in your situation and then apply the law to your case.  

If I don’t know what’s happening in your case, the information you’ll get from me is most likely useless, potentially even dangerous.  

I have an obligation to provide you with the best information possible, it’s part of the oath I took when I became a lawyer.  That’s why we ask you to disclose EVERYTHING and to answer our questions truthfully.  

“Online Advice”

Knowing all the facts is why relying on some internet “resource” for legal advice is dangerous.  It’s why we put disclaimers on our page about the advice in our blog.  Yes, it’s good advice…otherwise I wouldn’t put it out there, but it may not be the BEST advice for you because we don’t know your situation. 

When you post a question in some online forum or “click here for a FREE bankruptcy evaluation” you only disclose what you think is important or are willing to disclose to the public.  

The facts you throw out there may not be the ones necessary to answer the question.  Even if you provide good information about some aspect of your situation, other issues could cause problems.  

You can certainly use the internet to learn about bankruptcy as a whole and to figure out what information an attorney will need in order to help you.

But remember this…Don’t do anything until you’ve talked to a competent bankruptcy attorney about what’s going on in YOUR individual situation, real fast equals real danger. 

If you need sound advice about what to do in your particular situation, please contact us.  Don’t go it alone in one of the most complex fields of law there is.