There are many things to be learned from a bankruptcy lawyer. Once you have one conversation with an experienced professional you will realize this to be the case.

1. Your options. With so many types of bankruptcy, you must know your options – including the finer details of each one. This is the only way to truly make a decision that is going to be best for you at the present time while also leaving you open for future financial success.

2. How to best move forward. For example, you may think that filing bankruptcy is the best move at the present time. But did you know that you may be able to get past this rough stage on your life without going to this extreme? This is something that your bankruptcy attorney can discuss with you.

3. Why you are facing this situation and what you can do to improve things in the future. Even if you have to file for bankruptcy right now, it does not mean that your life is over. Your attorney can help you look back at the mistakes you have made, hopefully allowing you to see what you can do better once this process is complete.

During you first meeting with a bankruptcy lawyer, you are going to be asked many questions. This is part of bankruptcy law assistance. It is normal to be nervous. After all, this is a terrifying step in your life that is going to change your finances forever. That being said, you are doing the right thing by enlisting the services of a qualified professional.

No matter which questions are thrown your way, make sure you answer them with 100 percent accuracy. Your bankruptcy attorney needs to know where you stand right now so he or she can determine what moves to make next.

Additionally, do your best to organize all of your financial statements before your first meeting. Your attorney will need access to this information to ensure that the right plan is being laid out for you which is why you will need to Find an insolvency Practitioner who can lend you a hand. You can look for affordable liquidation services that have comprehensive solutions and process everything well.

You may be surprised at just how much you can learn from one conversation with a bankruptcy attorney. If you feel that this is the next logical step in getting your finances back to normal, contact a professional today.

Using Federal Wildcard Exemption As Wildcard

The federal homestead exemption is $20200 per individual filing. You can use the unused portion of homestead exemption to cover other personal properties of that much value. This way, even a certain portion of homestead exemption can also be used as wild card exemptions in certain cases up to the value of $10,825.

As per federal exemptions, a bankrupt individual is allowed to keep many assets and properties that include vehicles, jewellery, clothes, personal items up to $9300, pensions and IRAs, unemployment insurance, alimony and child support, and homes with equity less than $ 17, 425. Besides these normal exemptions, the debtor is also allowed to exempt any other asset that is otherwise non-exempt up to the dollar amount of $1,150 of any property.

States Where Such Exemptions Can Be Used

West Virginia – up to $800 from unused portion of homestead exemption can be used as wild card exemptions

Washington – $2,000 of any personal property, but in terms of stocks, bonds, bank deposits and cash, not more than $200 can be exempted

Virginia – Up to $10,000 of unused portion of personal property or homestead exemption

Vermont – Up to $7,000 of unused exemptions for crops, clothing, appliances, household furniture, jewelry, tools of trade, and motor vehicle

South Dakota – Up to $4,000 of any personal property (if claimed by non-head of family); up to $6,000 (if claimed by head of family)

South Carolina – Up to $5,350 of unused portion for tool of trade, jewelry, personal property, motor vehicle, burial and homestead exemptions

Rhode Island – up to $5,000

Pennsylvania – up to $300 of any property, including cash

Oregon – up to $400 of any personal property ($800 in case a married couple files jointly)

Ohio – up to $1,175

North Dakota – up to $7,500 of any property in lieu of homestead; if crops or grain exemptions are not used, up to $3,750 of any personal property (if claimed by non-head of household) and up to $7,500 of any personal property (if claimed by head of household)

North Carolina – up to $500 of any personal property; up to $5,000 from unused portion of burial or homestead exemptions

New Mexico – up to $500 as wild card exemptions

New Hampshire – up to $1,000

Nevada – up to $1,000

Nebraska – up to $2,500 of any personal property (except wages) from unused portion of homestead exemptions

Missouri – Up to $600 (if claimed by non-head of the family); $1,250 (if claimed by head of family); additional $350 per child may also be claimed by the head of family

Mississippi – up to $50,000 of any property, including cash and bank deposit, but only individuals who is 70 years of age or older can qualify for it.

Maryland – up to $6,000 of any property, including cash; An additional $5,000 in any real or personal property; however, the exemptions must be claimed within thirty days of attachment or levy

Maine – up to $400 in any property; up to $6,000 from unused portion of homestead exemptions

Kentucky – up to $1,000 as wild card exemptions

Iowa – up to $1,000 of cash or any personal property

Indiana – up to $8,000 of any tangible or real estate personal property

Illinois – up to $4,000 of any personal property, excluding wages

Idaho – up to $800 of any tangible personal property

Georgia – up to $600 of any property; Up to $5,000 of unused portion of homestead exemptions

District of Columbia – Up to $850 in any property; up to $8,075 of unused portions from homestead exemptions

Connecticut – up to $1000 of any personal property

Arkansas – up to $200 (for singles and non-head of family); up to $500 of any personal property (head of family or couples)

Alabama – up to $3,000 of any personal property, excluding wages; up to $6000 for couples if filed jointly

Delaware – head of family can qualify for wild card exemptions up to $500 of any personal property, excluding tools of trade

Collect All Bills

When it comes to getting prepared for the first consultation with a bankruptcy law attorney, the first thing you have to do is to collect all your bills. In order to be able to evaluate your case thoroughly, the lawyer will need all necessary bills that may include court summons related to debts, descriptions of outstanding taxes, medical bills, and bills from collectors and creditors. Besides that, you must also carry proofs of all paid bills that may include confirmation numbers, cancelled checks, cleared checks, and bank statements among others. If you have already settled some of your debt accounts, you must bring the related documents of those settlements.

Obtain A Credit Report

The lawyer will also like to look into your annual credit report in order to get a better picture about the kind of financial situation you are currently in. There are three major agencies that prepare and maintain these reports for consumers. These agencies are – TransUnion, Equifax, and Experian. As per the laws applicable in the United States of America, all consumers are entitled to get at least one free credit report from each of these agencies every year. So, this is the time to get one. If you have already obtained a report earlier, you may be charged a certain amount of fee for another report.

Document All Your Monthly Living Expenses

The bankruptcy attorney in Atlanta will also need to look into the details of your monthly living expenses that should include things like grocery costs, transportation, utilities, and housing expenses. It will be better if you also include the estimates of some personal upkeep costs also, such as haircuts.

Complete The Basic Paperwork

You are likely to be asked to complete some basic paperwork before the appointment. So, make sure you fill out all those documents in advance, which the lawyer may need during the meeting. Generally, these documents are detailed reports of your assets and debts. Some lawyers may even ask you to fax all these documents before the appointment so that they can do a thorough analysis beforehand and suggest you the best legal options during the meeting.

Overall, all these preparations will make it very easy for you get the best legal advice from a bankruptcy attorney in Atlanta.

Save Your Home

All real and personal properties that you use as a residence fall in this category. If you have filed the petition individually, you will be able to exempt up to $10000. If the current value of your home is less than $10000, you can keep it, but if its value is higher than that, your home is likely to be sold off and the trustee will pay you $10000 in cash. In cases, where a married couple has filed the petition jointly, the exemption limit is $20,000 (double). If you do not want to lose your home, an Atlanta bankruptcy attorney can help. Even if your home is worth more than $10000, the lawyer may negotiate a settlement, as per which you will be able to keep your home, but in return, you will have to sacrifice other exemptions of equivalent value. Alternatively, you may also save your home by agreeing to continue with the mortgage payments and to pay off all previous dues. Your lawyer can even negotiate with the mortgage lender and establish an affordable repayment plan so that you can continue making the monthly payments in a timely manner.

Save Your Car

Life can become very difficult in Georgia if you do not have your own car. So, you probably do not even want to lose your vehicles. As per the laws, you can keep your vehicles up to the value of $3500. It means if the current value of your car is $12000 and you still owe $4000 on it, your car will be sold off and you will get only $3500 in cash. This is obviously not a fair deal when you already have paid a large portion of the car loan. Your Atlanta bankruptcy attorney can come to your rescue in such cases. They will find out a middle way to save your car. For example, a common strategy is to continue making the car loan payments and to pay off all previous dues. But, it is not as simple a task as it seems. There are lots of legal intricacies involved with the process. So, unless you are an expert in Georgia bankruptcy laws regarding exemptions, you will need an experienced legal representative to handle the case on your behalf.

Overall, an Atlanta bankruptcy attorney can play a very important role when it comes to saving your home and vehicles while your assets are supposed to be liquidated under chapter 7 provisions.

Who Is Eligible?

You may need the help of experienced Atlanta bankruptcy lawyers in order to determine if you are eligible for chapter 13 filing. The state laws have defined certain qualifying criteria that you must meet. In general, it is a 2-step process. First, you have to pass a means test – your regular monthly income (after deducting regular expenses) must be higher than the median income of the people residing in Georgia. Second, you must get a certificate from a state-approved credit counselor. The counselor reviews your financial situation thoroughly. If they get convinced that you can regain control of your finances provided the repayment terms are made a little easier, they may recommend “wage earner’s plan”, which is just another term for chapter 13 filing.

Marital Status

Even if you are married, you can file your petition under chapter 13 individually with the help of Atlanta bankruptcy lawyers. If you owe certain debts where your spouse is a co-signer, there will be a special payment class in your restructured repayment plan, as per which you will have to pay all those debts in full.

Debt Limit

The chapter 13 laws in Atlanta have made certain provisions regarding the debt limit as well. For example, you can qualify for this type of filing only if the unsecured debts do not exceed $336,900 and the secured debts do not exceed $1,010,650. It is very important for you to keep in mind that the figures regarding debt limits change over every three years. The current figures are applicable since 2009.

Court Proceedings

Once your petition is filed, you will have to attend a Section 341 hearing. In general terms, it is a meeting with the creditors under the presence of authorities appointed by the court. The first meeting is often scheduled around 30 days after filing. In most cases, it is the lawyers only who talk on behalf of their clients in these meetings.

The court also orders an “automatic stay” after your petition is accepted. This automatic stay protects you from creditors, as it becomes illegal to make collection calls or make any attempt to recover the debt. Having the best Atlanta bankruptcy lawyers on your side may also make things a little easier for you.

Homestead Exemption

Homestead exemptions allow you to keep a real or personal property up to the value of $10,000. However, the maximum limit can get doubled in case a married couple is jointly filing for bankruptcy. It is important to note that this specific provision does not say that your home is safe; all it says is that you can keep up to $10000 of its value. It means if your home is worth more than $10000, the trustee will sell it off, give $10000 to you in cash, and use the balance to pay off the creditors. Atlanta Bankruptcy Attorneys however can help you save your home, as they are experts in these types of legal cases. In case the value of your home is less than $10000, you can use the balance and exempt properties that fall under other categories.

Personal Property

The laws applicable in Atlanta also allow you to keep some of your personal assets, such as furniture like this office chair, clothing, home appliances, television, and other such things. The maximum collective value of all such assets that can be exempted in this category is $5000. However, a single asset should not be worth more than $300. Again, if the value of a certain asset is more than $300, it is likely to be sold off and then the trustee will give you your $300 while the balance will be used for the repayment of the debt. The laws also allow you to use any unused homestead exemption up to $5000 to exempt some more personal properties. Besides that, there are also provisions to exempt personal injury cash recoveries up to the value of $10000. You can even keep your jewelry up to the value of $500. Atlanta Bankruptcy Attorneys can help you make the best use of these exemptions.

Automobile

Personal vehicles can be exempted up to $3500. If you still owe some money on your car, that outstanding due is deducted from the current value of the vehicle in order to find out how much protect equity you have. For example, if the value of a car is $14000 and you still owe $11000 on it, you will be able to exempt only $3000. But, if you owe $9000, only $3500 (the maximum exemption limit) will be exempted. In most cases, the vehicles are sold off and you get equivalent amount of money in cash.

Public benefits, such as unemployment compensation, local public assistance, veterans benefits, workers’ compensation, Social Security, crime victims compensation, and aid to the blind or disabled are exempted in full. Atlanta Bankruptcy Attorneys are expert legal professionals who make sure that the debtor gets the maximum value of exemption, as much as possible.

Choosing Between Chapter 7 And Chapter 13

If you must file a petition, you will have to decide whether you should file under chapter 7 or chapter 13, which is again not an easy decision, especially now that the new laws about means test and credit counseling are applicable in Atlanta also. Now, you cannot just go ahead and file your petition in the court. Once you decide that bankruptcy is the right option in your situation, you will have to do a means test and get your financial situation reviewed thoroughly by a state-approved credit counselor. If the monthly income (after deducting the necessary expenses) is more than the median income of Atlanta, you will not qualify for chapter 7. In that case, the petition must be filed under chapter 13, where you will be offered a more favorable repayment plan and you will be allowed to continue with your business and keep all your assets. Once you decide which type of bankruptcy you qualify for, you must get prepared thoroughly in order to deal with the legal procedure. Your Atlanta bankruptcy lawyer can help you in this regard.

Property Exemptions And Discharge Of Debts

As per chapter 7, most of your assets and properties will be sold off in order to pay off your debts that you owe to different creditors. However, Atlanta laws allow you to keep certain assets and properties or at least their value (up to a certain limit) in cash. But at the same time, not all the debts are discharged. Debts like student loan, a liability to pay personal injury compensation as part of a lawsuit, and other such things are not discharged. It means even if the court declares you as bankrupt, you will still be liable to pay those debts. An experienced Atlanta bankruptcy lawyer can play a crucial role when it comes to dealing with all these complexities.

It is not just the paperwork involved in these cases where you need help of an attorney. You can have a peek here to find trustworthy lawyers. Unless you are an expert in this field of law, you will need a good lawyer at every step of the process. For example, an attorney can educate you on better alternatives to avoid bankruptcy. If there are no alternatives, they will help you qualify for the right type of bankruptcy. They will handle the paperwork efficiently to avoid unnecessary hassles. They will help you prepare a list of all your assets in a way to make sure you get maximum exemptions. Overall, the importance of an Atlanta bankruptcy lawyer just cannot be ignored.

Bankruptcy laws can also be used by businesses to get their house in order. These laws are covered under Title 11 of the United States Code (the Bankruptcy code). The relevant chapters are chapter 7, chapter 11 and chapter 13.   

Why Avoid Bankruptcy

Legal recourse should be used as a last resort. Avoiding bankruptcy is a better option; prevention they say is better than the cure.
There are many reasons why you should avoid bankruptcy like a plague. It affects your credit score bringing it down by 200-250 points. Unfortunately, this negative entry stays for the next 7-10 years making it very difficult to qualify for new loans. Chapter 7 bankruptcy is bad news for your property too. Certain assets are not exempted under chapter 7 bankruptcy making them attachable property once bankruptcy is filed.

The scope of Chapter 7 bankruptcy is limited and it does not extend to all debts. Some debts like student loan, back taxes and other unpaid dues do not fall under the ambit of bankruptcy law. In such cases it is best to avoid bankruptcy.

Bankruptcy laws create a lien against your property. This gives your creditor a claim on your property. Chapter 7 bankruptcy affects your personal finances as well making it difficult to buy or rent a home/car.

It is very tough to get an approval for credit/loan after you have filed for bankruptcy. Even unsecured loans are hard to come by. Credit card loans are available but at a high cost. The interest rates on these loans are too high to make it financially viable. 
 
Retirement plans are also partially affected. 401 k plans are a nice place to park your investment up to a million dollars; anything above will be used for clearing debts.  

How To Avoid Bankruptcy

You can avoid bankruptcy by any of these plans:

• Debt settlement
• Debt management
• Debt consolidation  program
• Payday loan consolidation

Debt settlement reduces the amount due by as much as 40-60 %. However, you will need to negotiate with the creditors or the debt collecting agency. If you are not comfortable with the idea of dealing with your creditors, you can seek help of professionals.

Debt management is another method of clearing all dues. This is done by keeping all dues current. This gives savings in the form of interest charges. Interest charges often form a huge chunk of all dues and clearing dues become easier when it is waived off.

Consolidating all debts is another way of clearing dues. Payment is easier as the dues are cleared by monthly installments. The burden of interest charges is also reduced as there is one single amount to pay. This gives saving in transaction charges as well.

If you are struggling with several payday loans then you can consolidate them. This makes payment easy and also saves interest charges.
 
Being debt free is important because it gives you peace of mind and freedom from financial hassles. The best way to avoid bankruptcy is financial discipline; avoiding unnecessary expenses, keeping borrowing at a low, paying off debts in time and so on. A debt free today ensures a better tomorrow.

Bankruptcy Alternatives

Bankruptcy record remains on your credit reports for 7-10 years, depending upon the type of bankruptcy you have been granted. So, even though this method is meant to provide the debtor a chance to make a fresh start of his/her financial life, a bankrupt person has to face an array of difficulties in his/her personal, professional, and financial life. That is the reason it is always wise to try alternative strategies in order to avoid bankruptcy. There are plenty of things that you can do in this regard. This section is your best resource on bankruptcy alternatives.

Bankruptcy Basics

Filing a petition to become bankrupt is a complex process because the laws that regulate these types of cases are very complicated. Even though you are taking help from an expert lawyer, you are strongly recommended to have good knowledge at least about the basic things involved with the process of bankruptcy. This section will educate you on how to plan properly before you file your petition, how to decide if bankruptcy is the right option for you, what options are available, which chapter you qualify to file your petition under, and an array of other such things.

Bankruptcy Exemptions

The federal and state laws significantly vary from each other when it comes to dealing with bankruptcy exemptions. Some specific assets might be allowed to be exempted in a particular state while another state may not allow you to keep it. Things may depend very much on which state you live in. Awareness of the legal provisions applicable in this regard is the key to put yourself in a comfortable position where you may be able to get most of your assets and properties under bankruptcy exemptions. This is a must visit section for you if you do not want to lose your home or car after getting bankrupt.

Bankruptcy Laws

Considering the rising number of bankruptcy cases, the bankruptcy laws are getting tougher and tougher with every passing year. Knowledge about these laws will help you make an informed decision. In order to ensure a fair judgment and to make sure that your legal rights are well protected, you must know how the laws work in these types of cases. Though the US bankruptcy code is widely available over Internet, but considering the kind of technical language it uses, people often do not understand what they are reading. This section explains everything in simple language, educating you about your legal rights and how to make the best use of the laws in your favor.

Filing Bankruptcy

It is not always a voluntary filing. If you are unable to pay your debts and are missing your monthly payments for several months, your creditors may also file a petition requesting the court to declare you as bankrupt. In these cases, it is termed as involuntary filing. Therefore, if you are caught in a serious debt trap, you must visit this section to know about the different aspects associated with bankruptcy filing.

Life after Bankruptcy

Life after bankruptcy does not necessarily always have to be bad. If you follow the right approach, you can always put things back on track. This section will provide you extensive information on how you can rebuild your credit, qualify for low rate loans, get mortgage, get better employment opportunities, and an array of other such things. This section does not include quick fixes; it provides you practical information on how consistent efforts can be converted into a smooth financial life even after you go bankrupt.

Current Sale Value

There are several factors that are taken into account when it comes to evaluating assets that you are claiming as exempt, such as its age and current condition. That is the reason properties under bankruptcy exemptions are always valued at their current sale value. The sale value can be estimated by comparing the value of similar used products in consignment shops and auction stores. You can even contact these stores and request them to provide you an estimate for the goods claimed as exempt.

Quick Sale Value

If it is a real estate property, you should try to find out its “quick sale value”, the price you will get if you sell it within a week. You will obviously try to negotiate as high a price as possible. That’s not a problem as long as you are fair in your estimates. The trustee who has been appointed to deal with the liquidation process of your assets will accept a “fair” quick sale price for your home claimed in bankruptcy exemptions, which is the net value after deducting repair costs, closing costs, and commissions. You can use the services of a professional real estate appraiser for this purpose. The trustee is very much likely to accept the estimates provided by a licensed appraiser.

Properties Subject to a Lien or a Mortgage

When it comes to evaluating assets and properties that are subject to a lien or a mortgage, only the equity value is taken into account in order to determine the limits for bankruptcy exemptions. The formula to calculate equity value is very simple. You first have to get the current sale value of the asset and then deduct the amount of liens or mortgages from it.

Prorated Equity

When it comes to the valuation of co-owned assets, their prorated equity is taken into consideration. For example, if it is a boat and you own only one-third of the interest in it, only your share of equity will be considered to determine the exemption limit.

The estimate you provide is thoroughly reviewed by the trustee appointed by the court. Therefore, you are strongly recommended to follow the concept of maximum disclosure and fair evaluation while you are estimating the value of bankruptcy exemptions. If the trustee finds you guilty of hiding certain assets or evaluating the same in a way that is unfair, criminal charges may be filed against you.