Hammond & Hammond, P.C.

Consumer Bankruptcy

Jonesboro GA Bankruptcy Law Blog

Until debt do us part? Understanding debt obligations when one spouse files for bankruptcy

On your wedding day, you and your spouse promised that two individuals would become one in the bond of matrimony. Although you have remained unified as a couple, your spouse may now be seeking to break the bond of repayment to a creditor. Should your spouse file for bankruptcy, which assets are considered "fair game" to trustees?

If you are not declaring bankruptcy, there are facts you should know to help you maintain your credit score and retain your possessions.

When the harassing crosses the line: How the Fair Debt Collection Practices Act protects debtors

If you are in the process of determining whether to file for bankruptcy, you are probably feeling conflicting emotions regarding your path you'll be taking in the future to rebuild you credit after you file and your current struggle to balance your finances. Of course, the phone calls you now field and mailings you receive from creditors do nothing to ease the stress in your life. All you want is a time to think about discharging your debt without being continuously harassed.

If you feel that you are being excessively targeted by creditors, there are laws set in place to protect consumers from harassing, oppressing or abusing debt collectors. Enforced by the Federal Trade Commission, the Fair Debt Collection Practices Act (FDCPA) is used to prevent creditors from using deceptive practices on consumers. Here are several categories the FDCPA has established to defend consumers:

Can I discharge tax debt through bankruptcy?

Do you owe a considerable amount in taxes? If so, you may be wondering if you can discharge your tax debt through bankruptcy. If you qualify for Chapter 7 bankruptcy, you may be able to eliminate some of the taxes you owe through the process. However, you need to understand what type of tax debt you can discharge under Chapter 7 protection.

Yes, you can attempt to discharge your student loan debt in bankruptcy

The statistics would make Albert Einstein apoplectic. Over 43.3 million Americans currently have some amount of student loan debt. The amount of that debt is quickly approaching $1.39 trillion. And according to the Wall Street Journal, about 43 percent of student loan borrowers are either behind on their debt or not making payments.

Which begs the question - Is bankruptcy a viable option for student loan borrowers?

Rebuilding your credit after filing for bankruptcy

Filing for bankruptcy, whether it is Chapter 7 or Chapter 13, can mean a fresh start for you and your finances. However, in the aftermath of filing, you may find yourself overwhelmed by the state of your credit. A bankruptcy won't disappear from your credit reports immediately, but over time its influence will diminish -- and there are steps you can take to help speed up the process.

While having good credit might seem impossible, it is actually very possible for you to rebuild it. All you need is to understand the methods involved, which is why it's important to hire an experienced bankruptcy attorney. From filing for bankruptcy all the way to the recovery afterward, having a professional at your side is critical to the reconstruction of your credit.

Will Bankruptcy Cost Me My Car?

In addition to their home, a lot of people consider their vehicle to be one of the most important assets they own. For many, their car or truck is their only means of transportation, allowing them to easily get to work and maintain employment.

But when mounting debt becomes a burden and filing bankruptcy is the best relief option, many fear their vehicle will be one of the first things to go in order to pay off creditors. But is this always the case? Will bankruptcy always cost you your car?

Which is better: Filing bankruptcy or doing nothing?

No matter how well our economy seems to be doing, a portion of Americans continues to struggle with their debt, which forces individuals and families in some situations to choose between buying groceries and paying creditors. A difficult decision like this, coupled with the threat of calls from creditors, is enough for most to seek advice about debt relief and which option is best in specific situations.

Although it's true that bankruptcy does wreak havoc on your credit score and can prevent you from obtaining loans for a period of time, you should know that doing nothing is oftentimes considered far worse than filing bankruptcy. Here's why:

Worried about losing your home? It may not happen in Chapter 7

Most people make an effort to manage their debt by making regular, on-time payments. But as you know, the sudden loss of a job or an unexpected injury or serious illness can wreak havoc on these carefully laid plans. What was once a manageable situation may quickly grow out of control, leaving you worried about your financial future and your family home.

In many cases, bankruptcy can be your best solution to debt problems. But, a lot of people are scared of bankruptcy because they've heard they could lose their home and other assets. In reality, this rarely happens. And in some cases, you may be able to keep your home.

Are Medical Bills Dischargeable In Bankruptcy?

If you are having difficulty paying your medical bills, you are not alone. With ever-increasing costs and sky-high deductibles, medical debt is one of the most serious financial problems affecting Georgians today. For many, bankruptcy may provide a solution.

Before you file bankruptcy, it's important to evaluate all of the options available to you. Those options may include Chapter 7 bankruptcy, Chapter 13 bankruptcy and debt consolidation.

Which is better: Chapter 7 or Chapter 13?

If you are experiencing financial problems, such as overwhelming debt from credit cards or medical bills, you may have already looked at bankruptcy as a way to get immediate relief and begin to put your financial issues in the rear-view mirror. However, when you are at the point where you are ready to contact an attorney to discuss a bankruptcy filing, you'll come across variations in the bankruptcy law that you might not have considered.

The most prominent among these is the two most common forms of consumer bankruptcy, not just in Georgia but around the nation: Chapter 7 and Chapter 13. While each one has its benefits, multiple factors can play into which path individuals end up taking. The answer to the question "Which option is best for me?" is going to have a different answer for everyone.