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.

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.

The 6-Month Waiting Period

As per the laws, when you file for chapter 11 bankruptcy, you have to deal with a 6-month waiting period. The court proceedings do not start straightaway. You must show up on all hearings during this period and must comply with the debt repayment schedule. If you fail to do so, your petition will be rejected.

Gather Your Documents

Once you pass the 6-month test, you can go ahead and get your paperwork together. There is an array of documents that you need to attach with your petition, such as the report issued by a credit counselor, a detailed list of income and expenditures and assets and liabilities (with supporting documents).

Get Prepared; You Are Going To Talk To Your Creditors

Once your petition for chapter 11 bankruptcy is accepted, you will be asked to meet your creditors within 30 days and file reports explaining your financial situation in complete detail. The laws provide you four months of time to suggest a repayment plan. Your creditors on the other hand have the right to accept or reject your plan. If they reject your plan, they will be asked to file their own plans, but only after the first four months.

Dealing With The IRS

While you are dealing with your creditors, you must also get prepared to deal with the IRS. Paying back your taxes is a crucial part of the repayment plan that is proposed to you. There are long sections in Bankruptcy code that explain the different provisions applicable in this regard.

Get Prepared To Share The Control Of Your Business

It is also important to note that when you file under this chapter, you actually shift the control of your business to many outsiders that include your creditors, your credit counselors, and the court. Though you still own your business but all these parties will have a say in how you have to run your business, and you will have no other option but to listen to them.

Overall, your awareness about your legal rights and the fact that how prepared you are play a crucial role in this process and determine how smooth or difficult your journey to chapter 11 bankruptcy is going to be.

Bankruptcy Is The Last Option

The first of the several steps in filing bankruptcy is to make sure that bankruptcy is the only available option left to you. Before you go ahead and file for bankruptcy, make sure that there are no other alternatives left and bankruptcy is the last available option. It is important for you to understand the negative impacts of bankruptcy on your future financial life. Credit score is one of the most important aspects of today’s financial life and if you are granted bankruptcy, it will badly damage your credit record and you may have to work hard for the next one decade to rebuild your credit and get things back to normal. This is also important because as per the bankruptcy laws, you are supposed to obtain some consumer credit counseling form before filing bankruptcy.

Research Your Options

If you are knowledgeable enough, you may like to go ahead and defend the case yourself. However, it is not an easy thing to do for a common person keeping in view the intricacies involved in the bankruptcy laws. Therefore, if you are not sure that you will be able to defend bankruptcy successfully, go to a bankruptcy law office and hire a bankruptcy attorney. They will certainly charge you substantial fee but it is worth paying the fee if you want to defend your successfully.

Type Of Bankruptcy

As per the bankruptcy laws, there are different types of bankruptcies that you can claim for depending upon your specific case. Therefore, the next step is to choose the right type of bankruptcy you have to file. Your bankruptcy attorney will help you in this regard. They know the ins and outs of the bankruptcy laws including the new ones that have been added recently and they know which type of bankruptcy is the best for your specific situation. Here, you have to be very careful because if at a later stage you want to convert the bankruptcy type, you will have to fill a conversion file and this will require you to pay a certain fee, which is substantial in nature.

How Much Will filing Bankruptcy Cost You

The next step in filing bankruptcy is to figure out the overall filing bankruptcy cost. This may include filing fee, your attorney fee, conversions fee and various other fees – both expected and unexpected. You will have to assess all types of expenses.

The next step in filing bankruptcy is probably to have a meeting with the creditors under the guidance of your bankruptcy lawyer in an effort to reach some common terms out of the court. If things do not work, you may go ahead for the proceedings in the bankruptcy court.

Chapter 7 Bankruptcy

When you consult the best bankruptcy attorney, he/she will tell you that personal bankruptcy can be filed under Chapter 7 or Chapter 13. Under Chapter 7 all the non-exempt assets of the debtor are liquidated to pay off the creditors. The debtor party is; however, allowed to keep some exempted property, like clothes, some real estate, personal things, food, tools of trade, etc.

Chapter 13 Bankruptcy

Under Chapter 13, your personal bankruptcy attorney will inform you that you would be put on a payment plan. In order to qualify for Chapter 13 you need to have a stable source of income so that you can make the payments according to the payment plan. You will be able to retain all your properties as long as you make the payments. Once you have made all the payments you will obtain a discharge from all debts incurred.

Once you have filed Chapter 7 or Chapter 13, your creditors can no longer undertake any action. In other words your creditors will be forbidden from calling you, going for foreclosures, repossessions, etc.

However, when you file for bankruptcy you must remember that there are certain debts that one cannot do away with under both the chapters. Alimony, child support payments, federal and state taxes, student loans, fines, and some other debts cannot be liquidated. Your personal bankruptcy attorney will tell you beforehand about all the debts that you need to pay for.

Today filing for bankruptcy is not a simple thing. When people file for business bankruptcy, it is understood that one would need a business bankruptcy attorney. However, many people still make the mistake of taking up their own case when filing for personal bankruptcy. It is very important that one understands that whether it is business or personal bankruptcy, it cannot be done without the assistance of a bankruptcy attorney who specializes in that particular field.

It is important to hire a bankruptcy lawyer because bankruptcy is a difficult nerve-wrecking time. The whole volume of paperwork can leave you stressed out if you tackle it alone. With the personal bankruptcy attorney by your side you will feel more comfortable and relaxed.

What Are Personal Bankruptcy Laws?

The personal bankruptcy laws are the legal provisions that allow an individual to settle the debts they owe on much easier terms that fall within the means available to them. An honest individual can take advantage of the personal bankruptcy laws to give a fresh start to their financial life.

Ways To Use Personal Bankruptcy

There are two ways to use Bankruptcy services – voluntary and involuntary. As the term suggests, the voluntary personal bankruptcy is the procedure where the debtors himself or herself is filing bankruptcy petition. On the other hand, sometimes creditors in an effort to get their money back file a petition for bankruptcy against the debtors. If you are deeply drowned into debts and unable to think out a way to get out of this nasty situation, you had better file for personal bankruptcy yourself. Do not wait your creditors to file it for you because that will eventually maximize your trouble.

Advantages Of Filing Personal Bankruptcy

Those who are trapped in heavy piles of debts with all doors closed to pay off the debts can take advantage of the personal bankruptcy services. When you file a petition for bankruptcy, an automatic stay is legally imposed. This legal stay will save you from further harassments from your creditors to make payment. During the time while your personal bankruptcy is under trial, your creditors will not be able to take any non-bankruptcy actions that may include compelling you to make payments, etc. After you are declared as bankrupt, you can get relief from all your debts by settling them with your “non-exempt” resources and assets. This way, by filing bankruptcy, you get dual protection. While the bankruptcy case is pending, you get protection from the legal stay and after the bankruptcy is declared to you, you can easily release yourself from all kinds of financial responsibilities. Now you will have to start afresh.

Personal Bankruptcy For People With Regular Source Of Income

As per the bankruptcy laws, if you are among those who have a regular source of income, you cannot apply for liquidation bankruptcy. You will have to act according to the Chapter 13 Personal Bankruptcy law. As per this chapter, the court will propose you a repayment plan to pay off the reduced claims by the creditors. For example, you may want to pay 15 cents on each dollar and after the bankruptcy proceedings the court orders you to pay 25 cents on each dollar.

This way, your debts will be reduced to a very little amount. Now you will be liable to pay this amount of debt on a monthly schedule basis, as proposed by the court.