Whether you are filing for bankruptcy or you just have a debt problem, you need to get an attorney on your side. There are a lot of things to consider, such as whether to file for Chapter 7 or Chapter 13, how to find a reliable lawyer, and which laws affect you.
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Find A Reputable Lawyer
Filing for bankruptcy can be a daunting task. The process can take up to six months to complete and can cost thousands of dollars. A Bankruptcy Attorney Atlanta can help you navigate the process and ensure you get the results you deserve.
In addition to being a useful debt relief tool, bankruptcy may also protect your assets and provide a fresh financial start. However, it is important to make sure you choose the right type of bankruptcy for your situation.
For instance, a Chapter 13 bankruptcy may be the best option for homeowners who are at risk of foreclosure. In a typical chapter 13 plan, you will pay a portion of your debt each month to the Chapter 13 Trustee. You will also be required to attend a creditors’ meeting to discuss your options.
While there are many online directories promising to match you with the perfect attorney, it is important to do your research before hiring one. Read reviews of the attorneys you’re considering and learn what other people have to say about them.
Another smart move is to look for an Atlanta bankruptcy attorney who offers a free consultation. This can help you to learn more about their capabilities and decide if their services are worth the cost.
Before you sign on the dotted line, however, you will need to be sure the attorney is qualified to handle your case. Your local bar association can provide a list of qualified lawyers in your area.
Another option is to use a website like Upsolve, which provides free bankruptcy assistance for low-income families. If you’re having trouble making ends meet, it may be the only option you have.
A bankruptcy attorney can offer a more in depth discussion on what you should do, from creating a budget to working out credit counseling options. These services will help you to be more organized and avoid common pitfalls associated with filing for bankruptcy.
In addition to these services, an Atlanta bankruptcy lawyer will help you to maximize the benefits of filing for bankruptcy. They will also work to structure affordable fees.
Chapter 7 vs. Chapter 13
There are a number of factors to consider when choosing between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. These include your income, your assets, and your debts. Your Atlanta bankruptcy attorney can help guide you on which debt relief plan is best for your specific situation.
Chapter 7 can eliminate most unsecured debts and can get you out of debt faster than a Chapter 13 repayment plan. However, this method does not stop creditors from trying to collect on unsecured debts. For example, a creditor may garnish your wages or attempt to repossess your home. A Chapter 13 plan reorganizes your debts into manageable monthly payments. This is a more cost effective solution.
The benefits of filing a Chapter 7 are many, but the costs and fees can add up. Depending on your income level, you may not qualify for a discharge. Also, you may end up paying higher interest rates or more in fees.
You can also file a Chapter 13 case and still keep some of your assets. For example, you can keep your business’s collateral. In addition, you can discharge your taxes after closing. However, you should be aware that these options can vary from state to state.
Another consideration is the amount of back taxes owed. If you are unable to pay back the amount you owe, you will face foreclosure proceedings.
A Chapter 13 bankruptcy can eliminate some of your older tax debt. Additionally, it can allow you to reorganize your debts in a way that prevents lenders from foreclosing on your property.
Both options can be useful for people who need to stop collections efforts. Those with high incomes might prefer the benefits of a Chapter 13. But, if you are in the low-income range, a Chapter 7 may be more affordable.
To file a Chapter 7 or Chapter 13, you must first complete a means test. The means test calculates your disposable income. This figure is your monthly income after subtracting any allowable payroll deductions and other regular and necessary expenses.
In addition, a bankruptcy may reduce ongoing penalties and taxes. Although it does not guarantee your debts will be eliminated, it can be an important step in getting your finances under control.
Chapter 11 vs. CARES Act
If you are considering filing for bankruptcy, you should know that there are a number of significant changes that have recently been made to Chapter 11 of the Bankruptcy Code. These changes are designed to make the process easier and less costly for small businesses. But you should still be vigilant during the process, and consult with a competent and experienced bankruptcy attorney before making any final decisions.
A major change that is sweeping through the Bankruptcy Code is the creation of a new Subchapter of Chapter 11 titled “Small Business Reorganization Act” (SBRA). This new chapter allows small business debtors to file under the chapter and retain some interests in their company, without paying their creditors.
The SBRA Act will provide much-needed relief to small business debtors, who have been struggling with financial distress. It will allow for more control and flexibility for these debtors, who have traditionally had limited options to reorganize. As with any change to the law, the Courts will have to decide how they will interpret the new rules.
In addition to creating a new Subchapter of Chapter 11, the SBRA Act also significantly expanded the definition of a “small business debtor.” Before this legislation, debtors could only qualify for chapter 11 if they had less than $7.5 million in debt. Now, debtors can be approved if their total debt is under that limit, as well as if their debt is below the statutory threshold of $2.7 million for the next year.
Additionally, the debtor must have disposable income–income that is not reasonably necessary to operate the business–for at least three years. Debtors can request a forbearance on their residential mortgage payments under the Appropriations Act, and qualified servicers can file proof of deferred payments.
Another important change is that the CARES Act extends the life of a Chapter 13 plan by seven years. While this extension is designed to help business owners whose plans have been rejected by impaired creditors, it also extends the life of the Chapter 11 plan itself.
Other changes include the addition of a sunset provision, which will reduce the debt limit to $2,725,625 on the one-year anniversary of the bill’s enactment.
Upsolve Service For Low-Income Filers
Upsolve is a nonprofit legal-aid organization that helps low-income families file for bankruptcy. They also provide support and guidance. The service is free and supported by charitable foundations and individuals.
Bankruptcy is a great way for people to get a fresh start, especially those who have no realistic ways to pay their debts. However, it can be expensive, and there’s a lot of information involved. This is why Upsolve was created to simplify and automate the process.
Upsolve helps low-income families file for bankruptcy by providing a technology-based platform. It is supported by legal aid organizations and pro-bono bankruptcy attorneys. A user will answer a series of questions about their financial situation and debts. The answers are then used to generate a bankruptcy petition. In addition, Upsolve will tell the user if the information provided is accurate and suggest a pro-bono attorney if needed.
Upsolve is also an online forum where users can interact and receive emotional support. Upsolve also offers educational materials about personal finance. Moreover, a waiver request can be submitted to Upsolve.
Several documents must be uploaded. These include tax returns from the last two years and payment advices. Once the files are submitted, the site auto-populates the user’s responses into the bankruptcy petition.
The app is supported by US Legal Services Corporation and several private donors. There are also a number of top reviews from bankruptcy court judges and industry professionals.
Currently, Upsolve provides free services to people who have incomes below the federal poverty level. As a result, it helps more people access this important legal resource.
It’s worth visiting the Upsolve site to find out more about this vital debt relief tool. However, it’s not for everyone. Those who need a more complicated Chapter 7 case should consider hiring a local lawyer.
Upsolve is a free, non-profit legal-aid organization that helps low-income Americans file for Chapter 7 bankruptcy. Upsolve is supported by private donors and a number of leading foundations. Ultimately, Upsolve is designed to make the bankruptcy filing process easier and more affordable. With its help, more people can obtain a fresh start through bankruptcy.
