Overwhelming debt is an unfortunate reality for many individuals and families. Facing aggressive collection agencies, and even lawsuits and wage garnishment is challenging for anyone. If you had the money to pay your debts, you would, but when you can’t make ends meet it is time to explore if bankruptcy is the right debt relief solution for you.
An Honest Look at Bankruptcy
Taking an honest look at bankruptcy means exploring two things:
- If bankruptcy is the right financial choice for you, and
- Understanding bankruptcy, including the benefits and drawbacks of bankruptcy.
There are many bankruptcy myths and misinformation that floats around. Often this inaccurate information about bankruptcy causes people to avoid exploring it as an option, or to put off exploring it until their debt problem becomes even worse.
If you are struggling with overwhelming debt, we encourage you to take an honest look at bankruptcy. It is your legal right to file for bankruptcy protection, and it may be the best financial decision for you and your family.
Is bankruptcy the right financial choice for me?
Every bankruptcy case is unique and fact-specific, so without sitting down with you for a free consultation, we cannot give you guidance specific to your situation.
Generally speaking, if you cannot reasonably pay off your debts (especially credit card or medical debts) within three years, it is time to take an honest look at bankruptcy.
If you struggle in debt year after year, you will end up paying significantly more in interest and potentially in fines. If you cannot keep up with your payments, you are at risk of being sued and possibly having your wages garnished or bank account levied. Also, the years you struggle to pay off debt are years that you are not saving for retirement, an emergency fund, or furthering your financial wellbeing.
Bankruptcy is not the right solution for everyone, but if you are struggling with overwhelming debt then bankruptcy is a potential option you should explore.
What are the benefits and drawbacks of bankruptcy?
Bankruptcy is a powerful legal tool to help individuals and families get out of debt. The following is a brief overview of some of the benefits and drawbacks of bankruptcy. To get a full understanding of how bankruptcy can help you, we invite you to meet with us for a free, no obligation consultation. Fill out our free consultation form here or call our office at (912) 351-9000. We are not in the business of pushing people into bankruptcies they don’t need. Consider it an opportunity to explore your options in a pressure-free environment.
A brief overview of the benefits of bankruptcy:
- Bankruptcy can erase many types of debt, including credit cards, medical bills, personal loans, certain older tax liabilities, and other types of unsecured credit or loans.
- As soon as you file for bankruptcy protection all debt collection action against you must stop, including collection phone calls, wage garnishments, bank levies, and lawsuits for unpaid debts.
- Most people who file for bankruptcy get to keep most or all of their assets and personal belongings. The U.S. Bankruptcy Code, as well as the state of Georgia, provides for you to keep property, assets, and other belongings valued up to a certain dollar amount through exemptions. You get to keep exempt property if its value does not exceed a certain dollar amount.
- Chapter 13 bankruptcy creates an opportunity to catch up on missed mortgage or car payments, and can even lien strip away an underwater second mortgage.
- Filing for bankruptcy protection can get you out of debt and give you the financial fresh start you need and deserve.
A brief overview of the drawbacks of bankruptcy:
- Not all types of debt can be erased through bankruptcy. Debts that cannot be erased and known as “nondischargeable” and must be paid back after bankruptcy.
- The most common nondischargeable debts include student loans, back spousal or child support payments, newer tax liabilities, and fines imposed from a government body.
- Debts incurred right before filing bankruptcy may be nondischargeable.
- The above list is not exhaustive. Due to either the type of debt you owe or when or how it was incurred, you may have other debts that are also nondischargeable.
- Bankruptcy will only address debts incurred before the date you file your case. All dischargeable debts you owe on the date you file for bankruptcy will be erased when you receive your bankruptcy discharge order. Any debt you incur after the date you file is not part of your bankruptcy case and will not be erased.
- Filing for bankruptcy will at least temporarily lower your credit score.
- Filing for bankruptcy will affect your credit report for years.
- Chapter 7 bankruptcy will report for 10 years after the date you file for bankruptcy.
- Chapter 13 bankruptcy will report for 7 years after the date you file for bankruptcy.
- After bankruptcy people are able to get loans and lines of credit even though the bankruptcy continues to appear on their credit report.
Consult with a Bankruptcy Attorney
You deserve a financial fresh start, and we’re here to help you achieve it. We’re here to help you take an honest look at bankruptcy. It is our mission to ensure that you understand the power and benefits of bankruptcy. We’re here to answer all of your questions. Contact us right now (912) 351-9000 to schedule a free consultation. Together we will explore how bankruptcy can help you.
For over 35-years we have proudly served the people in Savannah, Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Springfield, Pembroke, Brooklet, Garden City, and Ludowici, Georgia.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.