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Is Your Car About To Be Repossessed Because You Missed Your Car Payment?

For most of us our cars are critical to the way we live our lives. From getting to work, to getting the kid to school, to buying groceries, most of us rely on our cars.

It can be frightening when you cannot afford to make your car payment. Especially if you have missed more than one payment and your car is on the brink of repossession.

Understand that your car loan is a secure debt. This means that your car loan is backed by the car itself. If you do not make your car payments, the lender has the right to repossess the car.

Cars That Are Repossessed

After a lender repossesses a car, typically they will sell it at auction. A car sold at auction generally sells for significantly less than the fair market value of the car. When a lender sells a car for less than the amount owed on the loan, it can create a serious problem.

Depending on the terms of your car loan, the lender may be able to take collection action against you for any deficiency between the amount you owe on the vehicle and the amount it sells for. For example, if you owe $15,000 on your car loan, and it is repossessed and sold at auction for $10,000, then your lender may have the right to come after you for the $5,000 deficiency.

If your car is about to be repossessed you have a few options.

Become Current On the Loan

If your car has not yet been repossessed, you can stop the repossession by making up all of your missed car payments.

Unfortunately, if the car has already been repossessed, it is unlikely the lender will give the car back even if you can make up your missed payments.

Contact Your Lender to Discuss Options

You may have the ability to set up a payment plan with your lender to make up missed car payments. It doesn’t hurt to ask – the worst they can say is no!

Contact your lender and see if they’ll work with you to help you save your car. Some lenders may be willing to work out a payment plan with you to make up missed payments provided that you can also continue to make the current monthly payment in full, as well.

Let The Car Be Repossessed

If you cannot afford your car payment and/or cannot catch up on missed payments, you have the option to let the car be repossessed. As explained above, if there is a deficiency on what the lender sells the car for versus the amount you owe on the loan, per the terms of the car loan your lender likely has the right to take collection action against you for the deficiency.

If it comes to that your options include paying the deficiency, negotiating a settlement on the deficiency, or filing for bankruptcy.

Considering Bankruptcy – Temporarily or Permanently Stop Car Repossession

If you have debt problems beyond missing your car payment, it’s time to consider if bankruptcy is the right solution for you.

Filing for bankruptcy can stop (at least temporarily) the repossession of your car. As soon as your bankruptcy case is filed, all collection action must stop including car repossession.

However, understand that stopping the repossession by filing bankruptcy may only be a temporary solution. To avoid repossession permanently, you must make up the missed car payments directly to the lender, or through a Chapter 13 repayment plan. If you’re in the greater Savannah area, meet with us for a free consultation and we’ll explain how this works!

If your car is about to be repossessed, or has already been repossessed, contact us (912) 351-9000 to discuss all of your options.

 

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

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Get Rid Of Medical Bills with Bankruptcy

The costs of medical care have always been high. A medical emergency can cost hundreds, even thousands of dollars! It is no surprise that medical debt is one of the most common reasons that people file for bankruptcy.

In fact, a 2013 study funded by the National Institutes of Health (NIH), discovered that the median emergency room visit costs 40% more than what the average American pays in a month’s rent. The study found that the average cost of an emergency room visit in the United States is over $2,000. Moreover, in instances where critical care or surgery is necessary, it is not uncommon for the bill to total over $20,000.

Unfortunately illnesses and injuries can create unaffordable debt for families with and without health insurance plans.

Medical Bills In Bankruptcy

Medical debt is unsecured debt. Unsecured debt is not backed by collateral (such as a home or car). Medical debt is treated just like your credit cards in bankruptcy.

Bankruptcy can eliminate medical debt. If you file for Chapter 7 bankruptcy, all of your medical debt will be erased. If you file for Chapter 13 bankruptcy, you may pay back none, all, or a portion of your medical debt. But as long as your case is successful, regardless of which chapter of bankruptcy you file, you will no longer owe on medical debt incurred prior to filing your case.

What If I Want To Pay Back Some Of My Medical Debts?

When you file for bankruptcy, you cannot pick and choose which debts to include. In your bankruptcy petition you have a duty to list all creditors, including doctors to whom you owe money.

We understand that you may want to pay back your doctors for outstanding co-pays or other bills. This may be especially true if you plan to continue with the doctor/patient relationship.

After filing for bankruptcy and receiving a bankruptcy discharge, you will not have any legal obligation to pay back the medical debt. However, if you feel a sense of duty to pay back certain doctors or medical debts, nothing in bankruptcy law precludes you from doing so.

Do you owe medical bills that you simply cannot afford?

We can help you get rid of medical bills with bankruptcy. If you live in Savannah, GA or the surrounding areas, 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.

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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.

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Will My Employer Know If I File For Bankruptcy?

We understand that many people feel shame and embarrassment in regard to financial problems or bankruptcy. For this reason, we’re committed to treating every person who walks through our doors with dignity and respect.

If you’re struggling with feelings of shame or embarrassment, please read our article Filing for Bankruptcy is Not Shameful. You’re Not Alone.

That being said, we understand that you may be concerned that if you file for bankruptcy people will find out about it. You may be particularly concerned about your employer or boss finding out. The first thing we want to tell you is: if you do not tell people about your bankruptcy, it is unlikely that they will find out about your bankruptcy.

While unlikely it is possible. Bankruptcy petitions are filed with the U.S. Bankruptcy Court and are public record. People who know how are able to access your paperwork; however, few people know how to access bankruptcy records and realistically nobody in your personal life would go searching to see if you file for bankruptcy.

That being said, of course there are a few caveats. There are situation where your employer may find out if you file for bankruptcy. Further, there may be situations where future employment opportunities are affected by a bankruptcy filing. The most likely scenarios involve wage garnishment, security clearance, and background checks.

Wage Garnishment

In general your current employer will not find out about your bankruptcy filing. However, in cases where wages are already being garnished, the employer receives notification of the bankruptcy because they must put an end to the wage garnishment.

If you wages are being garnished, your employer has already been notified of the judgment against you because the payroll department had to set up the wage garnishment. While you may feel embarrassed, consider that filing for bankruptcy demonstrates that you’re taking appropriate measures to deal with your debt problems.

Security Clearance

Jobs that require security clearances may be affected by filing bankruptcy. If your job requires a security clearance, then your boss may find out about your bankruptcy filing or you may have a duty to disclose a bankruptcy filing. Employment opportunities requiring security clearance include those working for the armed forces, or employed by the CIA, FBI, or other government agency, or private companies that contract with the government.

However, it is unlikely that a bankruptcy filing puts your security clearance at risk. In fact, bankruptcy is often viewed as taking appropriate measures to deal with debt problems. This is viewed more favorably than carrying outstanding debt and missing payments.

No employer is allowed to discriminate against you based on filing for bankruptcy, nor are they allowed to fire you based on filing for bankruptcy.

Background Checks

In some cases, future job application may be affected by filing for bankruptcy. In a nutshell: while the government is not allowed to consider a bankruptcy filing when deciding whether or not to hire you, this rule does not apply to private employers. This is of particular concern if you plan to apply for jobs that require you to handle money or finances.

If a potential employer asks you for permission to run a background check, understand that this likely includes running a credit check. In this instance, consider getting in front of a potential issue by being candid about your previous bankruptcy filing. You can explain that you had past financial struggles, but that you took the steps necessary to properly handle it by filing for bankruptcy. Your prospective employer may appreciate your honesty and candor.

You deserve a financial fresh start, and we’re here to help you achieve it. We offer free consultations and affordable payment plans. Contact us today!

We proudly serve the people of Savannah, GA and the surrounding areas.

 

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

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Chapter 13 Bankruptcy Explained

Filing for bankruptcy can be the solution to your debt problems and help you gain financial freedom. Though, it is never an easy decision to make.

There are two types of bankruptcy available to individuals and families: Chapter 7 bankruptcy and Chapter 13 bankruptcy. To understand the differences between the chapters read our article The Differences Between Chapter 7 and Chapter 13 Bankruptcy.

Chapter 13 Bankruptcy Explained

Chapter 13 bankruptcy creates a re-payment plan that lasts three to five years, depending on your specific situation. Chapter 13 can stop a foreclosure on your home and even give you a chance to catch up on mortgage arrears.

Chapter 13 bankruptcy plans must be approved by the Bankruptcy Trustee and the Bankruptcy Court. It can be complicated. We’ve filed thousands of Chapter 13 cases. When you hire us, you are in experienced and capable hands.

It is our mission to ensure that you understand the power and benefits of Chapter 13 bankruptcy. We’re here to answer all of your questions. Call us right now (912) 351-9000 to schedule a free consultation.

Benefits of Chapter 13 Bankruptcy

  • Stops wage garnishments, stops lawsuits filed by creditors, stops harassing creditor phone calls, and stops automobile repossession.
  • At the conclusion of the Bankruptcy, remaining credit card debt, medical bills, or other unsecured debts, and some tax debts, are discharged (erased).
  • In some cases, allows a homeowner to “lien strip” or eliminate a second mortgage.
  • Creates an opportunity to catch up on missed car payments.
  • Creates an opportunity to catch up on other missed payments, such as back taxes or child support payments.

 

Chapter 13 bankruptcy might be the solution to your debt problems. However, it requires monthly payments to the Bankruptcy Trustee for three to five years, which can be difficult for some people to manage. Also, depending on your specific case, you may still owe on some debts after bankruptcy, such as student loans.

Filing for bankruptcy will adversely affect your credit score in the short term; however, if you have already fallen behind on paying your debts, your score has likely already decreased.

Qualifying for Chapter 13 Bankruptcy

To qualify for Chapter 13, you must have a steady source of income, such as from a job, self-employment, a business, retirement income, or social security. This is not a requirement if you file for Chapter 7.

At our free consultation we will help you determine which chapter of bankruptcy is right for you.

Costs of Filing Chapter 13 Bankruptcy

Those costs of filing for Chapter 13 include: court filing fees, mandatory credit counseling fees, and attorneys fees. In our district, we have what is called a “no look” fee, meaning that the attorney’s fees are set by the Bankruptcy Court. Since Chapter 13 creates a monthly payment plan, the attorney’s fees can be paid from those payments.

When we meet for a free consultation, we will go over all of the costs together. There will not be any surprise fees or costs down the road.

After Filing for Bankruptcy

Chapter 13 bankruptcy is a powerful tool that can help you save your house, catch up on missed payments, and eliminate unsecured debts like credit card debt.

We are here to help you understand the process and decide if filing for relief under Chapter 13 is the right choice for you and your family. Contact us today to schedule a free consultation.

The Law Offices of Barbara B. Braziel proudly serves Savannah, Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Ludowici, Springfield, Pembroke, Brooklet, and Garden City, GA.

 

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

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Chapter 7 Bankruptcy Explained

Choosing to file for bankruptcy can be a difficult decision, but living under the weight of debt can be debilitating. Further, bankruptcy can be a confusing area of law and there are many myths and misinformation floating around about bankruptcy.

Here at the Law Offices of Barbara B. Braziel we help hundreds of families, just like yours, file for bankruptcy protection every year.

Chapter 7 Bankruptcy Explained

Chapter 7 Bankruptcy eliminates credit card debts, medical debts, and other types of debt. In fact, Chapter 7 eliminates most unsecured debts. Unsecured debts are debts that are not backed by anything. Meaning they do not have property attached as collateral.

It is our mission to ensure that you understand the power and benefits of Chapter 7 bankruptcy. We’re here to answer all of your questions. Call us right now (912) 351-9000 to schedule a free consultation.

Benefits of Chapter 7 Bankruptcy

  • Erases most unsecured debts: including credit card debt and medical bills.
  • Stops all collection action.
  • Stops harassing phone calls from creditors.
  • Stop wage garnishments and bank levies.
  • Stops lawsuits filed by creditors.
  • Depending on your specific situation you will most likely be able to keep your car and your home. It is more likely that you can keep your car or home if your payments are current and there is not significant equity.

Chapter 7 bankruptcy might be the solution to your debt problems. However, depending on your specific case, you may still owe on some debts after bankruptcy, such as newer tax debts and student loans. Also, Chapter 7 cannot help you catch up on mortgage arrears or missed car payments (though Chapter 13 bankruptcy can).

Filing for bankruptcy will adversely affect your credit score in the short term; however, if you have already fallen behind on paying your debts, your score has likely already decreased.

Qualifying for Chapter 7 Bankruptcy

Qualifying for Chapter 7 bankruptcy was made more difficult in 2005 when congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). To qualify for Chapter 7 debtors must have an income below the state median for their household size, or if above the median, must pass the Means Test.

When you hire us to represent you, it is our job to determine if you are eligible for bankruptcy relief.

Costs of Filing Chapter 7 Bankruptcy

Those costs of filing for Chapter 7 include: court filing fees, mandatory credit counseling fees, and attorneys fees.

When we meet for a free consultation, we will go over all of the costs together. There will not be any surprise fees or costs down the road.

After Filing for Bankruptcy

At the conclusion of a Chapter 7 bankruptcy you will not be buried under the weight of debt. You will no longer receive harassing phone calls from creditors. You will have a fresh start. Contact us today to schedule a free consultation to learn how bankruptcy can help you and your family.

The Law Offices of Barbara B. Braziel proudly serves Savannah, Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Ludowici, Springfield, Pembroke, Brooklet, and Garden City, GA.

 

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

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Random Acts of Kindness: January 2017

Hello dear reader!

Thank you for following our blog. We share information here about getting out of debt, the benefits of bankruptcy, and tips on savvy financial management, saving more, and spending less. Certainly, these are critical topic for our financial futures, but we’d also like to share stories on random acts of kindness. Just some feel-good news to remind us of the good in the world!

Reader’s Digest published a touching article entitled 24 Tear-Eyed Stories You Must Read About the Touching Kindness of Strangers. It’s truly inspiring. We’ve picked out our top three favorites to share with you. For more inspiration, read all 24 here.

Paint With the Colors of the Wind

Marilyn Kinsella of Canmore, Canada discovered the hard way that she’d forgotten the rules regarding liquids and carry-on items. As she went through airport security, she had to part with her painting supplies. When she returned home a week later an attendant was at baggage claim waiting to give back her painting supplies. The attendant had taken the time to look up her return date and flight so he could make sure Marilyn got her supplies back.

There Are No Restrictions On Kindness

Mohammed Basha, a doctor in Gainsville, FL had just given his patient a diagnosis of pancreatic cancer. As he walked through the parking lot, he saw an elderly gentleman handing tools to someone under his stalled car. The someone what his patient, Jimmy. The doctor asked Jimmy what he was doing. Jimmy’s response? “My cancer didn’t tell me not to help others, Doc.” The elderly man turned the key and his engine roared to life.

Fighting Fire on a Full Stomach

JoAnn Sanders of Brandon, FL was in-line at a fast food restaurant with two firefighters. The siren sounded on their fire truck, and they took off to leave. As they were headed out the door, a couple who had just received their food handed it to the firefighters. When they reordered their meal, the manager made sure they did not have to pay a second time. Kindness, paid forward.

It doesn’t take money or talent to be kind. Give random acts of kindness a try. We’d love to hear about the kindness you spread into the world! Feel free to post stories about your acts of kindness on our Facebook page!

Follow us on Facebook to keep up with our monthly Random Acts of Kindness articles!

 

We proudly serve the people of Savannah, Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, 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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The Bankruptcy Means Test Explained

The Bankruptcy Means Tests is one of the most complicated aspects to bankruptcy law. This “test” was born of the 2005 changes to federal bankruptcy law implemented by congress in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). Effectively, individuals with primarily consumer debts have to prove that they are not abusing the bankruptcy laws.

To be certain, the means test makes qualifying for Chapter 7 bankruptcy more difficult; however, an experienced bankruptcy attorney can help you navigate the means test and qualify for the debt relief that you deserve.

The Bankruptcy Means Test Explained

The means test is a review of your income minus expenses. It determines whether or not you qualify for bankruptcy relief under Chapter 7.

If your net income falls below the state median for your household size, then you automatically qualify for Chapter 7 bankruptcy. Because there is no “presumption of abuse,” below-median debtors do not have to run the means test.

If your net income is above the state median for your household size, then you must run the means test to determine whether or not you qualify for Chapter 7 bankruptcy. An above-median debtor must overcome the presumption of abuse and demonstrate that the qualify for Chapter 7 bankruptcy. Understand that having a high income does not preclude you from relief under Chapter 7.

With the help of the experienced attorneys at The Law Offices of Barbara B. Braziel, even people who earn well above the median income for our state can qualify for Chapter 7 bankruptcy. Contact us for a free consultation and analysis of your income.

Median Income In Georgia

As of November 1, 2016, the median household income in Georgia is:

  • Household of One: $42,735
  • Household of Two: $55,600
  • Household of Three: $61,705
  • Household of Four: $72,290
  • Households of more than four: add $8,400 for each individual in excess of four.

If you live in Georgia and your gross household income falls below these figures, then you qualify for Chapter 7 bankruptcy relief without further means test analysis. If you live in Georgia and your gross household income is above these figures, then you must run the means test to determine if you qualify for Chapter 7 bankruptcy relief.

Calculating Median Income

The U.S. Bankruptcy Code defines how to calculate income for purposes of bankruptcy. It operates off of the presumption that your ability to pay back your debts in the future should be determined by your average income over the past 6-months. This calculation using a 6-month look back period does not account for your present circumstances, including recent decreases in your income.

Income for the purposes of the means test is calculated by taking your average income for the past 6-months. The calculation must include all income that you receive. However, the following benefits are excluded from the means test calculation of income: social security benefits, payments to victims of war crimes or crimes against humanity, and payments to victims of international terrorism or domestic terrorism.

Calculating the Means Test

The means test calculation considers your income minus allowable expenses. Essentially looking at your ability to fund a Chapter 13 re-payment plan.

The allowable expenses in the means test are calculated based on a mix of your actual expenses and standard pre-determined expenses. You can explore the official means test form here. An experienced bankruptcy attorney can help you navigate through the means test.

We are here to help you determine if you qualify for bankruptcy, and if so, what bankruptcy chapter will best serve your needs. We offer free consultations to anyone in Savannah, GA and all of the surrounding areas.

 

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

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You Can Have A Debt Free 2017

It’s the beginning of a new year, and like so many, you may have made some new year’s resolutions. Is one of your goals for the new year to get out of debt?

If so, you have come to the right place. Sure many resolutions are forgotten by the end of January, but yours doesn’t have to be. If you want to get out of debt in 2017, we’re here to help you do it.

If you’re experiencing financial hardship, filing for bankruptcy might be the right choice for you; however, it might not be. Without learning about and exploring all of your debt relief options, you can’t know which option is best for you and your family.

We offer free consultations to anyone in the Savannah, GA area. We are not in the business of talking people into filing for bankruptcy if they don’t need to. We’re in the business of helping people get out of debt. Come meet with us and learn about how you can have a debt free 2017!

Call us right now (912) 351-9000 to schedule a free consultation.

It is time to explore your options to handle your financial struggles if:

  • You are drowning in credit card or medical debt.
  • Your wages are being garnished.
  • You’ve been sued by a creditor for nonpayment of debt.
  • You’ve fallen behind on your house or car payments.
  • You’re only able to make the minimum payment on your credit card bills and you cannot reasonably pay off your debts within three years.

 

When is the Best Time to File Bankruptcy?

This is a tricky question. The answer is specific to each person and their unique set of circumstances. And when it comes to filing for bankruptcy – the timing may be critical.

It is important to examine the specifics of your case to determine the best to file bankruptcy.

Most often the answer to “when is the best time to file for bankruptcy?” is now. This is because the longer you go without paying back your debts, the greater your risk of being sued, and ultimately having your wages garnished or bank account levied.

On the other hand, for some people waiting to file for bankruptcy is important. For example, certain older income tax debts can be erased in bankruptcy. In these cases, it may be beneficial to hold off on filing. At our free consultation we will review your specific situation together to determine if bankruptcy is the right choice for you and when the most advantageous time to file is for you.

You Can Have A Debt Free 2017

Our goal is to help you gain financial freedom to help you make today the first day of the rest of your life. We will explain the bankruptcy process and make sure you understand how filing for bankruptcy will benefit you and your family. We offer free consultations to all of our clients.

Bankruptcy Can End Your Financial Struggle And Help You Gain Financial Freedom.

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Take charge of your financial future and reach your goal of getting out of debt! The stress relief will invigorate you!

Wishing you all a Happy, Joyous & Rewarding New Year!!

 

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

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Old Tax Debts Can Be Erased with Bankruptcy

Even after 35+ years practicing bankruptcy law, we never cease to be amazed by how much misinformation about bankruptcy people believe. Many people erroneously believe that tax debts cannot be erased in bankruptcy. The truth is that certain back income taxes can be erased in bankruptcy.

We debunk five other bankruptcy myths here!

While old tax debts can be erased with bankruptcy, it is important to know that payroll taxes and penalties for fraud cannot be erased.

Dischargeable Income Tax Debts In Bankruptcy Must Meet Three Criterion:

  • The tax debt must be at least 3-years old.
  • The tax return related to the debt must have been on file for at least 2-years.
  • The tax debt must be assessed by the IRS at least 240 days prior to filing bankruptcy.

If your income tax debts meet the above criterion, then they may be erased in bankruptcy. Any interest and penalties associated with that tax debt are erased as well. These rules apply to both federal and state income tax debts.

More On the Three Criterion: Older Income Tax Debts Can Be Erased with Bankruptcy

Income tax debts that are at least 3-years old are eligible for bankruptcy discharge. 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.

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.

Finally, the tax debt must have been “assessed” by the IRS at least 240-days prior to the date the bankruptcy case is filed. 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.

While older income tax debts that meet these three criterion may be dischargeable in bankruptcy, new or recent tax debts are not erased in bankruptcy. Also, as mentioned above, payroll taxes and penalties for fraud cannot be erased in bankruptcy either.

Knowledge Is Power: Learn How Bankruptcy Can Help You Gain Financial Freedom

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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The Bankruptcy Discharge Order

Receiving a Bankruptcy Discharge Order from the bankruptcy court is the goal when you file for bankruptcy.

A bankruptcy discharge is a court order that releases you from personal liability on certain debts. You are no longer legally required to pay back any debts that are part of your bankruptcy discharge. Further, the creditors of discharged debts can never legally attempt to collect payment on those debts.

Discharge Does Not Apply to All Debts 

Bankruptcy discharge applies to unsecured debts, which includes credit cards, medical debts, personal loans, and other consumer debts.

Bankruptcy discharge does not apply to debts that are deemed nondischargeable by the Bankruptcy Code. Debts that are nondischargeable are not erased by bankruptcy, and you are still liable to pay them back even after successfully filing for bankruptcy. Nondischargeable debts include student loans, some taxes, back child or spousal support, as well as some other types of debt.

When you hire us to help you file for bankruptcy, we will review your specific situation and make sure you know which of your debts will be erased by your bankruptcy.

Discharge Erases Personal Liability Only

It is important to understand that bankruptcy discharge applies to personal liability only. This matters in regard to any of your secured debts. Secured debts are those backed by collateral, such as a home mortgage or car loan.

To illustrate why this matters, consider the following example:

Say you have a secured car loan. If you fail to make your payments on the car loan, the creditor has the right to repossess the car. In the absence of a reaffirmation agreement, after receiving your bankruptcy discharge you would no longer be personally liable to pay back the debt on the car, but if you fail to make your monthly payments the creditor retains the right to repossess the car.

Discharge is Granted at The End of the Bankruptcy Case 

The Bankruptcy Discharge Order is issued from the Bankruptcy Court at the end of a successful bankruptcy case.

The timing of when discharge is granted depends on which chapter of bankruptcy you file. If you file for Chapter 7 bankruptcy you will be granted discharge after the time has tolled for your bankruptcy trustee and creditors to object to discharge. In a Chapter 7 you can typically expect a discharge 4 to 6 months after the date your case is filed. If you file for Chapter 13 bankruptcy you will be granted discharge after you have made all payments under your repayment plan.

Creditors Must Cease All Collection Action Even Before Discharge

During the time you are awaiting your bankruptcy discharge your creditors are not allowed to attempt any collection action against you. All collection activity must stop as soon as your bankruptcy case is filed. Read our articles here and here on the power of bankruptcy to stop all collection action.

Here at the Law Offices of Barbara B. Braziel we make sure you understand the 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 learn more about our firm here and come meet with us for a free no-obligation consultation.

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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