What Does Bankruptcy Mean?


Deciding to file for bankruptcy is a very tough decision, but when you’re facing mounting debt, it’s an important option to consider. Sometimes it just may be the best choice you or your family can make for their financial future. Bankrup
tcy can provide debt relief and free you from harassment from creditors; however it does have its drawbacks such as some damage to your credit. In East Cobb a bankruptcy may stay on your credit report for as many as 10 years. If you are wondering whether you should file, consider the following questions: Are you only able to make minimum payments on your bills? Have you received notices that your mortgage or loans are being foreclosed? Have you had a severe financial setback, such as an expensive illness, a divorce, loss of a job or of a significant client? Does budgeting yourself out of debt within five years seem impossible? If your answer to one of these questions is yes, then pursuing an East Cobb bankruptcy may be the best way to get your finances back on track.

Declaring bankruptcy isn’t an easy process and it doesn’t erase every kind of debt that you may have incurred. Even after filing, you are responsible for debts such as: child support; alimony; fines or penalties from government agencies; fraudulent debts; most student loans; most recent back taxes; cash advances of $750 or more made within 70 days of filing; recent large (in excess of $5,000) purchases of luxury goods made within 90 days of filing; and most recent back taxes. Don’t make the mistake of thinking that any of these will slip by judicial attention—all of your financial activity in the months prior to filing will be carefully scrutinized by the court, so be prepared for a full fiscal review.

There are two ways to declare an East Cobb bankruptcy: by filing under Chapter 7, or by filing under Chapter 13. If the court believes that you can afford to repay some of your debt, you may be required to file again under a different chapter, which means more legal processing and makes having quality legal advice even more important.  The subsequent sections provide some helpful information on Chapter 7 and Chapter 13.

We offer a free consultation for anyone considering East Cobb bankruptcy.  Just fill out the cntact form or call us now.

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