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Category Archives: Bankruptcy

Aug162018NOCOMMENTS
Is It Legal for My Creditor to Levy My Bank Account?

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Bankruptcy, Get Out of Debt, Stop Collection Action

Is It Legal for My Creditor to Levy My Bank Account?

Yes, it might be legal for your creditor to levy your bank account.

There are certain situations when a creditor is allowed to remove funds that are in your bank account – known as a bank levy. The creditor may only take up to the amount that you owe and any money seized is applied to the balance owed.

A creditor has the right to levy you bank account when:

  • The creditor has a judgment from the court.
  • The creditor is a tax collector. The IRS has the right to levy your bank account without filing a suit for unpaid taxes.
  • The creditor is your bank and has the right of offset under state law.

Creditor with a Judgment

Before most creditors can levy your bank account, or garnish your wages or put a lien on your property, they must first sue you for the unpaid debt (breach of contract). Only after they win the law suit and have a judgment from the court do they have the right to take powerful collection action against you.

Further, before a judgment creditor can levy your bank account, under Georgia law it must first serve you with a copy of summons of garnishment. A bank levy or other garnishment may only occur ten days after you are given written notice of the pending garnishment. O.C.G.A. § 18-4-64.

Tax Collectors

Unlike the majority of unsecured creditors, the IRS has collection powers without needing a judgment from the court.

However, you still have the right to due process. You will be notified before money is seized from your bank account. The tax code requires that the IRS give you notice of your tax debt and notice of their intent to levy.

Creditor is Your Bank

Pursuant to state law and/or the deposit agreement between you and your bank, the bank may have the right to “offset” your account – meaning the bank can seize funds from your account to satisfy an unpaid debt owed to the bank.

For example, your bank may offset (take money from) your checking account to pay for a missed car payment where the bank also holds the car note.

In Georgia, “a bank with which a deposit account is maintained may exercise any right of recoupment or set-off against a secured party that holds a security interest in the deposit account.” GA Code § 11-9-340 (2014).

It is not necessary for the bank to furnish you notice of its intent to levy, because due process is satisfied by the bank’s right to offset without warning.

Bankruptcy Stops Collection Actions

As soon as you file for bankruptcy protection, all collection action against you must stop including bank levies. If you are deep in debt, possibly facing a situation where your account may be levied, it is time to explore if bankruptcy is the right solution to get you out of debt.

Learn about the ways bankruptcy can help you. Contact us for a free consultation by clicking here or calling (912) 351-9000. We’re here to help you gain the financial freedom you deserve. The Law Offices of Barbara B. Braziel proudly serves the greater Savannah, GA area.

 

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

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Aug132018NOCOMMENTS
Guidelines for Bankruptcy Filers Affected by Natural Disasters

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Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy

Guidelines for Bankruptcy Filers Affected by Natural Disasters

Unfortunately, large-scale natural disasters affected hundreds of thousands of Americans in 2017. The Federal Emergency Management Agency (FEMA) reported an historic year of natural disasters. FEMA reported that disasters affected 8% of the U.S. population in 2017.

Inevitably some people filing for bankruptcy protection will be affected by natural disasters. The United States Trustee Program has released considerations that “shall” guide the enforcement activities of bankruptcy trustees in the event of a natural disaster.

Document Requirements

The inability of a debtor to provide required documents because of a natural disaster will not be a barrier to bankruptcy relief.

“United States Trustees shall not file enforcement motions against debtors who are unable, as a result of a natural disaster, to file or produce documents required by the Bankruptcy Code, if they otherwise are eligible for bankruptcy relief. Further, United States Trustees should generally not oppose any reasonable requests filed with the court by debtors seeking relief from filing requirements due to a natural disaster.”

Means Test

When a debtor earns more income than the state’s median income, adjusted for household size, in the six months leading up to filing bankruptcy, there is a presumption of abuse that must be overcome. This presumption can be overcome by running the Means Test and demonstrating that relief under Chapter 7 bankruptcy is warranted.

For debtors who are affected by natural disasters, the bankruptcy trustee is to “consider the adverse impacts of a natural disaster,” and has discretion in deciding whether to file an objection to the bankruptcy.

“In determining whether to file an enforcement action on grounds of presumed abuse, United States Trustees shall consider the adverse impacts of a natural disaster, including a major decline in anticipated income or a major increase in anticipated expenses, to constitute “special circumstances” for purposes of rebutting the presumption of abuse.”

Attendance at the Meetings of Creditors

With rare exception, every person who files for bankruptcy protection must attend a Meeting of Creditors, also known as a “341 Hearing.” While debtors who have been affected by a natural disaster must still attend the Meeting of Creditors, they may be able to do so in a remote or alternate location. Debtors are still required to be sworn in and to show acceptable personal identification.

“When, due to a natural disaster, debtors are unable to appear personally in the district where the case is filed for the mandatory section 341 meeting of creditors, United States Trustees shall exercise flexibility and offer alternative means for attendance. The debtors, however, must be able to present acceptable personal identification to the individual administering the oath in the alternate location.”

Know that if you have been affected by a natural disaster and have filed bankruptcy or are about to file for bankruptcy, the United States Trustee Program has enforcement guidelines in place to help you.

Follow us on Facebook to learn how bankruptcy can help you get out of debt.

The Law Office of Barbara B. Braziel helps people get out of debt. We offer free consultations to people of Savannah, GA and the surrounding areas, including Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Ludowici, Springfield, Pembroke, Brooklet, and Garden City.

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

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Aug072018NOCOMMENTS
Practical Steps to Take Before Filing Bankruptcy

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Bankruptcy

Practical Steps to Take Before Filing Bankruptcy

Deciding to file for bankruptcy is a difficult decision. Though, erasing your debt through bankruptcy may be the best decision you could make for your financial future. Once you are free from unmanageable debt, like credit card and medical debt, you will be in a better position to build an emergency savings and invest in retirement.

However, before deciding to file, it is important to understand how bankruptcy can help you, as well as its limits. The following are practical steps to take before filing for bankruptcy so you can feel confident in your decision.

Explore if bankruptcy is the right choice for you.

If you are deep in debt and considering solutions, we encourage you to explore all of your debt relief options. If you have a realistic option to get out of debt other than bankruptcy, then it is important to thoroughly explore that option. As you explore your options, remember that a true solution to your debt problem addresses all of your debts, not just a few of them.

Understand which of your debts will be erased by bankruptcy.

Dischargeable debts are debts that can be erased through bankruptcy, including credit cards, medical debt, personal loans, certain older tax debts, and some other types of debt. Discharged debts are erased forever and after a successful bankruptcy you will no longer be legally obligated to pay these debts back.

Nondischargeable debts cannot be erased through bankruptcy, including student loans, spousal or child support payments, fines imposed from a government body, certain newer tax liabilities, debts resulting from illegal activity, and some other types of debt. Even after bankruptcy you are legally obligated to pay back nondischargeable debts.

If you have debts that will not be erased, have a plan for how you will handle paying back those debts after bankruptcy.

Consult with a bankruptcy attorney.

The best way to know if bankruptcy is the right solution to your debt problem is to consult with a bankruptcy attorney. Many bankruptcy attorneys offer free consultations, so getting the important information you need will not cost you any money.

We offer free consultations to people in and around Savanna, GA. Call us at (912) 351-9000, contact us on the web, or email info@BrazielLaw.com.

Gather the necessary documents.

To properly assess your case and to prepare your bankruptcy petition, your attorney will need certain documents. Gather the necessary documents so that together we can review your specific situation when we meet for our free consultation.

Take the pre-filing credit counseling course.

You must complete the mandatory Credit Counseling course within 180-days prior to filing for bankruptcy. The purpose of mandatory Credit Counseling is to help you explore whether or not you need to file for bankruptcy.

Since the course is generally straightforward, inexpensive, and not too time consuming, you can use it as a tool to explore if bankruptcy is the right choice for you. If you choose to file, then it is already completed. If you choose not to file, then it served as an inexpensive tool that helped you explore your personal finances.

Know that you deserve a fresh start.

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 and how filing will affect you and your family.

We’re here to answer all of your questions. Contact us now at (912) 351-9000 to schedule a free consultation. Together we will explore how bankruptcy can help you.

 

For over 37 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.

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Aug062018NOCOMMENTS
3 More Reasons to File for Bankruptcy

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Bankruptcy

3 More Reasons to File for Bankruptcy

We recently published 3 Reasons to File for Bankruptcy and because there are many reasons why people need to file for bankruptcy protection, we thought it important to follow up with 3 More Reasons to File for Bankruptcy.

For many, filing is the best decision for their financial wellbeing. There is a commonly believed myth that filing for bankruptcy ruins a person’s financial future, but just the opposite is true. People are able to get out of debt and regain control of their finances through bankruptcy.

3 More Reasons to File for Bankruptcy

The primary reasons people file for bankruptcy is because they owe more debt than they can afford to pay back.

  1. Medical bills.

A bankruptcy may be necessary if you have hospital, doctor, and other medical bills that you cannot afford to pay back. It is not uncommon for people to have tens of thousands of dollars or more in medical debt as a result of treating a critical or long-term illness, or after a medical emergency.

Also, a medical bankruptcy may be necessary due to loss of income during an illness or injury. And even people with health insurance can be left with staggering medical debt due to exorbitant policy deductibles, co-pays, and high premiums.

  1. You have fallen months behind on many of your debt obligations.

If you have not been able to make your credit card payments for months, your accounts have likely been charged-off or will be soon. A “charge-off” means the creditor determined that the debt was unlikely to be collected, wrote the account off as a loss, and closed the account to future charges. Federal regulations require revolving creditors (credit cards) to charge-off accounts after 180 days of delinquency (missed payments).

Even if an account has been charged-off, you still owe the debt and a collection agency will likely take over collection attempts.  When this happens the original creditor and the collection agency will likely report the past-due balance owed on your credit report. This is a double-ding to your credit score, month after month.

If you have charged-off accounts and other delinquent debts, it is time to explore if bankruptcy is the right solution to your debt problem.

  1. You recently returned to work after a bout of unemployment.

If you have been unemployed, the longer you wait to file for bankruptcy after starting a new job, the higher your average monthly income over the past six months will be. This matters because qualifying for Chapter 7 bankruptcy considers your average income over the past six months against your state’s median income, adjusted for household size.

If even with the income from your new job you have more credit card debt or medical debt than you can reasonably afford to pay back in the next few years, then it is important to immediately explore if bankruptcy is the right solution for you.

Hire the Premier Bankruptcy Law Firm in Savannah

The experienced attorneys at The Law Office of Barbara B. Braziel are committed to making the bankruptcy process as smooth as possible for all of our clients.

We’re located in the Savannah, GA area. Contact us for a free consultation to discuss the benefits of filing for bankruptcy.

Reach out to us by email at info@BrazielLaw.com or call (912) 351-9000.

 

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

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Aug032018NOCOMMENTS
Can My Bank "Offset" My Account?

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Bankruptcy, Get Out of Debt

Can My Bank “Offset” My Account?

When a bank “offsets” an account, it means that the bank seizes funds from an account to satisfy an unpaid debt owed to the bank. For example, a bank may offset (take money from) a debtor’s checking account to pay for a missed car payment where the bank also holds the car note.

Can My Bank “Offset” My Account?

In general yes, a bank or other financial institution has the right to setoff account balances against obligations owed to the bank (or financial institution) by the account holder.

Usually before a creditor can levy your bank account they must first bring a lawsuit and secure a court judgment against you for unpaid debt (breach of contract), but this is not true for financial institutions, tax collectors, and in a few other limited circumstances.

Therefore, when a bank has a loan to a debtor, and the debtor misses a payment and has money in an account held at the same bank, the bank/lender may use its right of set-off to seize funds directly from the debtor’s bank account and apply the funds toward the missed payment.

The right to offset is rooted in both state law and often in the deposit agreement with the financial institution. Due process is satisfied because the bank has the right, via statute or express agreement, to offset without warning.

Georgia State Law

In Georgia, “a bank with which a deposit account is maintained may exercise any right of recoupment or set-off against a secured party that holds a security interest in the deposit account.” GA Code § 11-9-340 (2014).

Deposit Agreement with the Bank

Often a deposit agreement between a financial institution and a borrower will contain language that expressly grants the bank the right to offset. A set-off paragraph may contain language similar to the following: “We may, without prior notice and when permitted by law, offset the funds in this account against any due and payable debt you owe us now or in the future, to the extent of such person’s right to withdraw.”

Bankruptcy Stops Collection Actions

As soon as you file for bankruptcy protection, all collection action against you must stop including account set-offs and bank levies. If you are deep in debt, possibly facing a situation where your bank may exercise its right to set-off, it is time to explore if bankruptcy is the right solution to get you out of debt.

All of us here at the Law Offices of Barbara B. Braziel want to help you get out from under the weight of financial stress and gain financial freedom. We invite you to read about the clients we’ve helped here.

If you live in Savannah, GA or the surrounding areas and have questions about your debt relief options, let’s meet for a free consultation. Please reach out to us at (912) 351-9000 or contact us by filling out this simple web form.

 

We proudly serve the people of Savannah, GA and the surrounding areas, including Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Ludowici, Springfield, Pembroke, Brooklet, and Garden City.

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

READ MORE
Aug022018NOCOMMENTS
Tax Collector's Right to Levy Your Bank Account

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Bankruptcy, Get Out of Debt

Tax Collector’s Right to Levy Your Bank Account

Most creditors (the banks you owe money) have very little power to force collection from you without first winning a lawsuit against you for not paying back your debt. For example, if you stop paying your credit card bill, the bank who backs that card would have to win a lawsuit against you and get a judgment from the court before they could levy your bank account or garnish your wages. However, the IRS has collection powers without needing a judgment from the court.

Tax Collector’s Right to Levy Your Bank Account

The IRS has the right to levy your bank account without filing a suit for unpaid taxes. This means the IRS has the authority to seize money directly from your bank account.

Moreover, the IRS isn’t limited to levying only bank accounts. An IRS levy permits the legal seizure of your property to satisfy a tax debt. The IRS also has the power to garnish your wages and to seize and sell your real estate, vehicles, and other personal property.

Your Right to Due Process

You still have the right to due process, which you means you will be notified before money or property is seized. The tax code requires that the IRS give you notice of your tax debt and notice of their intent to levy. This IRS letter will be entitled Final Notice of Intent to Levy and Notice of Your Right to A Hearing.

Avoiding an IRS Levy

If you cannot pay the taxes that you owe in full, you can attempt to work out a payment plan with the IRS to pay off the remaining balance. To avoid a levy it is imperative that you be proactive. Do not ignore IRS bills or notices. Remember the IRS has serious levy power that you do not want enforced against you.

Handling Tax Debt Through Bankruptcy

Certain older personal income tax debts can be erased through bankruptcy. Newer tax liabilities are nondischargeable and are not erased in bankruptcy. Also, payroll taxes and penalties for fraud cannot be erased.

The following three criterion must be met in order for an income tax debt to be dischargeable in bankruptcy:

  • The tax debt must be at least 3-years old: The tax return associated with the tax debt must have been due, including any extensions, more than 3-years before the date the bankruptcy case is filed.
  • The tax return related to the debt must have been on file for at least 2-years: If the tax return related to the debt was not filed on time, that tax return must have been filed more than 2-years before the date the bankruptcy case is filed.
  • The tax debt must be assessed by the IRS at least 240 days prior to filing bankruptcy: A tax debt is assessed on the date the tax liability is officially assessed at the IRS Service Center and the applicable form is signed by an IRS official.

These rules apply to both federal and state income tax debts.

Even if your tax debt cannot be erased through bankruptcy, filing may help you get a handle on your debt problem. For example, filing a Chapter 13 Bankruptcy creates an opportunity for you to pay back your tax debts over time without the risk of the IRS levying your bank accounts or seizing other property.

The Law Office of Barbara B. Braziel

Learn about the ways bankruptcy can help you. Contact us for a free consultation by clicking here or calling (912) 351-9000. We’re here to help you gain the financial freedom you deserve. The Law Offices of Barbara B. Braziel proudly serves the greater Savannah, GA area.

 

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

READ MORE
Jul302018NOCOMMENTS
How Does Bankruptcy Affect My Mortgage?

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Bankruptcy, Chapter 13 Bankruptcy

How Does Bankruptcy Affect My Mortgage?

If you own a home and are considering filing for bankruptcy protection, you likely have many questions about how your home and mortgage will be affected by filing. First, understand that every bankruptcy case is unique and your options and how you will be affected is specific to your circumstance. Second, the following is information generally – to explore how bankruptcy will affect you specifically we encourage you to consult with a bankruptcy attorney. We offer free consultations to anyone in or around the Savannah, GA area.

How Does Bankruptcy Affect My Mortgage?

The mortgage on your house has two elements: your personal liability to pay back the money you borrowed and the lien attached to the house as collateral.

  • The promissory note you signed when you took out the mortgage includes the borrowing terms, interest rate, and other legal provision of the loan.
  • The lien your mortgage lender has on your home grants the lender the right to foreclose on your home (take back the property) in the event that you default on loan payments.

 

After a successful Chapter 7 bankruptcy filing, you would no longer be personally liable to pay back your mortgage. However, the lien against your house still exists and your lenders right to foreclose if you default on payments survives bankruptcy. Chapter 13 bankruptcy does not erase your personal liability on your mortgage, and similarly, the lien against your house still exists as well as the lenders right to foreclose.

If you want to keep your house, you must continue to make your monthly mortgage payments to the lender. You must also get current on any missed mortgage payments.

Also, you may want to consider the pros and cons of reaffirming your mortgage during a Chapter 7 bankruptcy. This means you would sign paperwork that reaffirms your personal liability on the debt. There are other implications of reaffirmation agreements as well, which we will explore during our free consultation.

Alternatively, if you do not want to or cannot keep your home, you have the option to surrender your home and erase the debt. You would no longer be liable to pay back the mortgage or liable to pay back any deficiency resulting from what the house sells for versus the amount that you owed on the loan.

Bankruptcy is a complex and nuanced area of law. To have your questions about bankruptcy in Georgia answered, come meet with us for a free consultation. We proudly serve the people of Savanna, Chatham County, Effingham County, Bulloch County, Bryan County, Liberty County, and Long County.

Call us today at (912) 351-9000 or contact us to schedule a free consultation.

The Law Office of Barbara B. Braziel has over 37 years of bankruptcy experience. We are the premier bankruptcy law firm in Savanna, GA and we practice exclusively in bankruptcy law. We invite you to get to know us here and read about the clients we’ve helped here.

 

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

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Jul272018NOCOMMENTS
Why Are Some Creditors Paid in Bankruptcy While Some Are Not?

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Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy

Why Are Some Creditors Paid in Bankruptcy While Some Are Not?

Just as some debts are treated differently in bankruptcy – some debts can be discharged (erased) in bankruptcy and some cannot – so too are creditors treated differently in bankruptcy.

Whether or not a creditor will be paid in bankruptcy depends on the type of debt, the chapter of bankruptcy filed, and whether the debtor has unexempt assets.

  • In a no asset Chapter 7 case there are no funds, nothing for the trustee to seize and sell, so there is nothing to pay creditors.
  • In a Chapter 13 a repayment plan is created, and creditors will be paid in a certain order of priority. Some creditors may be paid in full while some creditors are paid only a portion of what they are owed, or nothing at all.

 

The U.S. Bankruptcy Code sets forth the order of priority established for creditors who are owed money. 11 U.S.C. § 507. Some creditors will be paid before others, if creditors are paid at all. Creditors are divided by classes, and each class is paid in full before the next class is paid. If there is not enough money to pay each creditor in a class in-full, then each member of that class will receive a pro-rata share of the amount they are owed.

Creditors are paid in the following order of priority:

  • The bankruptcy trustee assigned to administer the case.
  • Unsecured Priority Claims
    • Domestic support obligations – any back spousal or child support obligations owed at the time the bankruptcy case is filed.
    • Certain income tax debts.
    • Criminal fines.
  • Secured Creditors
    • Creditors who hold a lien on property in the possession of the debtor, such as a mortgage lender or car note lender.
    • In a Chapter 13 plan a debtor may pay back mortgage arrears or missed car payments in full during the life of the plan.
  • Unsecured Nonpriority Claims
    • Credit card debts.
    • Medical debts.
    • Personal loans and student loans.

 

Unsecured nonpriority claims are last to be paid back from funds distributed from liquidating assets in a Chapter 7 or from Chapter 13 plan payments. These creditors may be paid back in full, or partially based on a pro-rata share, or not at all.

Working with Our Law Office

The bankruptcy team at The Law Office of Barbara B. Braziel  are committed to helping people get out of debt and gain the financial freedom they deserve. All we do is bankruptcy law. We invite you to learn more about who we are here. If you live in Savannah, GA or the surrounding areas and have questions about your debt relief options, let’s meet for a free consultation.

Please reach out to us at (912) 351-9000 or contact us by filling out this simple web form.

 

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

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Jul242018NOCOMMENTS
Do I Have to Stop Using My Credit Cards If I File for Bankruptcy?

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Bankruptcy

Do I Have to Stop Using My Credit Cards If I File for Bankruptcy?

When we meet with someone for a free consultation, we are often asked if it is necessary to stop using credit cards if one plans to file for bankruptcy. Bankruptcy is a complex area of law, but the short answer is: yes, you have to stop using your credit cards if you are filing for bankruptcy.

First, it is necessary to stop using your credit cards before you file for bankruptcy. It is possible that charges on credit cards made too closely to when you file for bankruptcy will be deemed nondischargeable. This means those charges may not be erased and you would be legally obligated to pay them back even after a successful bankruptcy case.

Certain debts incurred right before filing for bankruptcy are presumptively nondischargeable. Consumer debts owed to a single creditor totally more than $675 for “luxury goods or services” incurred within 90 days before filing for bankruptcy are “presumed to be nondischargeable.” 11 U.S.C. § 523(a)(2)(C)(i)(I). Though, credit card charges for necessary living expenses and necessities made prior to filing for bankruptcy are not presumptively nondischargeable.

Second, when you file for bankruptcy you must list all of your debts. Once your creditors get notified of your bankruptcy they generally shut down your lines of credit. This means that most likely any credit card that you owe money on will be shut down once you file. At that point no new charges can be made anyway.

Finally, the fact is that after filing for bankruptcy it will be possible for you to get new lines of credit and credit cards. However, we caution people fresh out of bankruptcy to avoid getting into a situation where they end up in debt again. We want you to enjoy all of the benefits of your debt-free financial fresh start – and that does not include getting into debt again.

Explore How Bankruptcy Can Help You

Bankruptcy is a complex and nuanced area of law. Here at the Law Office of Barbara B. Braziel we will make sure you understand the protections and benefits of bankruptcy and how filing with affect you and your family. We take the time to explain the bankruptcy process to our clients. We invite you to get to know us here and read about the clients we’ve helped here.

Call us today at (912) 351-9000 or contact us to schedule a free consultation.

To have your questions about bankruptcy in Georgia answered, come meet with us for a free consultation. We proudly serve the people of Savanna, Chatham County, Effingham County, Bulloch County, Bryan County, Liberty County, and Long County.

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

READ MORE
Jul232018NOCOMMENTS
Documents You Must Gather Before Filing Bankruptcy

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Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy

Documents You Must Gather Before Filing Bankruptcy

The majority of people who file for bankruptcy don’t want to. Though, they realize that their debt is out of control and that filing for bankruptcy is the right choice to take control of their finances and get out of debt. Filing for bankruptcy is a serious financial decision, but it may be the best financial decision.

When you file for bankruptcy there are a few things that you must do. One of your responsibilities is to gather the necessary documents. There are documents that the bankruptcy trustee will require, and there are documents that your attorney will need to complete your bankruptcy petition and schedules.

For some people one of the most daunting tasks in the bankruptcy process is gathering the necessary documents. If this is your experience, our advice is to take it one document at a time. You do not have to find all of them at once.

Documents You Must Gather Before Filing Bankruptcy

  • 6 months of pay stubs;
  • 6 months of documentation of other sources of income (if applicable);
  • 6 months of profit & loss statements (if self-employed or you own a business);
  • Copies of your bills and documentation of other debts you owe;
  • Copy of your most recent mortgage statement(s);
  • Copy of your most recent car loan statement(s);
  • Copy of your federal and state income tax return or a transcript of the return, for the most recent filed year ending immediately before your case is filed;
  • Copies of paperwork in regard to: pending lawsuits, wage garnishment, bank levies, foreclosure on real property, or repossession notices;
  • List of all bank and credit union accounts;
  • Record of any interest you have in an individual educational retirement account or under a qualified state tuition program; and
  • Certificate of completion for pre-filing credit counseling.

With the above documents your attorney will be able to complete your bankruptcy petition and schedules, or at least the majority thereof.

Our Bankruptcy Law Firm Offers Free Consultations

All of us here at the Law Offices of Barbara B. Braziel are here to help you end your financial struggle and gain financial freedom. We offer free consultations. Contact us at (912) 351-9000 today!

 

We proudly serve the people of Savannah, GA and the surrounding areas, including Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Ludowici, Springfield, Pembroke, Brooklet, and Garden City.

We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

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