FILING FOR BANKRUPTCY IN SAVANNAH
Nov. 19, 2017
Filing for bankruptcy allows you to get a fresh start when you can no longer pay your debts. For this, either flexible repayment plans can be made or your assets can be liquidated altogether. To navigate the legal labyrinth involved, however, you need to hire a competent bankruptcy lawyer.
Types of Bankruptcy
Bankruptcy formalities will begin with you filing a petition in the bankruptcy court. You can file this petition as an individual, together with your spouse, or through your corporate entity.
Chapters in the United States Bankruptcy Code determine their titles. As an individual, you will file for Chapter 7 or Chapter 13 bankruptcy. This will depend on specifics in your situation, as your attorney will enlighten you about during the hiring interview.
Your business would file under Chapter 7 for liquidation or Chapter 11 to allow you re-organize this business. Chapter 12 will provide debt relief to your family if you are farmers or anglers. Should your bankruptcy involve parties from foreign countries, you need to file under Chapter 15.
What Happens When You Declare Bankruptcy?
Filing for insolvency will present you with powerful remedies for your serious debt problems. It will help you wipe out unsecured debts such as credit card debt. Unsoned debt means your creditor does not have lien over your property and cannot, therefore, repossess your property items if you do not pay up.
If you file under Chapter 13 instead of Chapter 7, you could end up paying back a portion of unsecured debt. Any unsecured debt outstanding on completion of your repayment plan gets discharged.
Filing for insolvency means your creditors will stop harassing you and any collection activities. Filing will prevent your creditor to foreclose your mortgage or repossess your automobile. It will also eliminate some lien types. Lien means your creditor has a right to take away your property. This is unless you invoke prevention procedures against lien during filing.
It is important to note, however, that filing for bankruptcy will not wipe out student loans, eliminate alimony obligations or child support, do away with tax debts, or eliminate non-dischargeable debts.
What’s Good Or Bad About Insolvency Filing?
An advantage in filing for insolvency is that once you meet appropriate statutory requirements, there are no limits set on your repayment plan’s duration. A traditional plan will let you pay your creditors over a three to five year period. A longer term will be confirmed should you prove you need it.
A major disadvantage in the filing is that proceedings can be lengthy and complex. Complexity increases during identification of provisions that expedite and streamline cases involving your unique small business debts.
The Complexity and a Good Lawyer
Filing for bankruptcy amounts to venturing into a legal labyrinth. This requires the guidance of a professional for best results. Start by determining whether you need to file and then which type of attorney you need, preferably one specializing in finance and insolvency for both individuals and corporates.
A bankruptcy attorney will research your unique situation, fill in lengthy but requisite paperwork, and guide you through the court process. They are familiar with local court rules and attendant bankruptcy trustees and are good at communicating with harassing creditors haunting you.
Living with overwhelming debt, its endless frustration cycles and instabilities need not haunt you, your business, and your family. There is a solution for creditor harassment calls and worries arising from credit card and loan debt. If you are in Georgia, it is easy to get a competent lawyer in Savannah. Filing for bankruptcy, with the assistance of a proficient lawyer, will give you a fresh start.