Rome Bankruptcy Attorney
WHAT TYPE OF BANKRUPTCY BEST SUITS MY NEEDS?
CHAPTER 7 BANKRUPTCY
This is often called a “fresh start” bankruptcy. It allows you to get rid of your debt fast. You are thus able to move on with your life, without having to repay creditors right away.
In order to qualify for Chapter 7 bankruptcy, you must pass something called the means test. The means test is an income qualification test that compares your household income and size against the median for your state. If you don’t initially qualify for Chapter 7, but have a significant change in income or expenses, you may be able to qualify at a later date. When you file Chapter 7 you will have the ability to keep a certain amount of property up to a certain value. Protected property is also referred to as exempt property. Any property that is not exempt can be liquidated by your bankruptcy case trustee and sold to pay your creditors. In reality most people get to keep most, if not all their property.
CHAPTER 13 BANKRUPTCY
Chapter 13 bankruptcy allows you to restructure your debt into a repayment plan in which you pay back your debt over the course of three to five years. This type of bankruptcy is a good option for people who do not qualify for a Chapter 7. Other situations in which Chapter 13 might be a good choice are:
When there is a large amount of tax debt that cannot be discharged
If you are underwater on a car loan and want to “cram down” the loan
You are facing possible foreclosure and will have the ability to make up the arrears
If you have a second mortgage that is underwater
You stand to lose nonexempt (i.e. not protected) property that you want to keep
THE BANKRUPTCY FILING PROCESS
It’s best to have the help of a Rome bankruptcy attorney when filing bankruptcy, as the process can be quite complex. We can help you with the following:
REBUILDING CREDIT AFTER BANKRUPTCY
There is life after bankruptcy! However, you will need to work at at building your credit after bankruptcy. This might include using a secured credit card, making sure the bankruptcy is properly recorded with your creditors and working to remove creditor judgments from you report or records. Many creditor judgements can be removed from your records after bankruptcy. But, this process is not automatic. There is a court process to do so. Some types of judgements cannot be removed; for example, child support and tax liens.
Are you ready for a new life?
Our Rome office is located at 107 E Fifth Ave. Rome, GA 30161