How can bankruptcy help get you out of debt? When should you use Chapter 7 bankruptcy? And when is Chapter 13 bankruptcy your only option?
Depending on how you file bankruptcy in Atlanta, Chapter 7 and Chapter 13 bankruptcy have key differences. But one thing is clear: most Atlanta residents wanting a fresh start, to clear debts and pay back what’s possible, choose Chapter 7 bankruptcy.
Why choose Chapter 7 bankruptcy over Chapter 13 in Atlanta? Most people want to file Chapter 7 because it allows you to clear major debts, especially credit debts. It doesn’t clear all debts, and you just might lose some things, but Atlanta Chapter 7 bankruptcy is the best way to start over and rebuild your finances.
Why You Choose Atlanta Chapter 7 Bankruptcy
The pluses of Chapter 7 bankruptcy are how it’s a fast and effective way out of most bills you simply cannot pay. You make no payments over time. Atlanta residents like you can be completely free and clear of the majority of debt.
In Chapter 13 bankruptcy, you have to pay back your debts, while Chapter 7 cancels most debt (we’ll talk about benefits of filing Chapter 13 bankruptcy too).
You can typically be free and clear in 3-6 months after filing Atlanta Chapter 7 bankruptcy. If you have thousands if not tens of thousands in credit card debt, you can be free of it in a matter of months. Since your property is liquidated to pay back debtors, there is a chance you will lose some things such as your car or home, but the reality is most filers lose practically nothing. Atlanta Chapter 7 bankruptcy does let you keep your essentials too–the less you have, the less you lose.
Negative Points on Atlanta Chapter 13 Bankruptcy
The disadvantages are pretty easy to see when you file Atlanta Chapter 13 bankruptcy: you have to pay debt back. Sure, it gives you more time, but you have to pay back debts on your mortgage, car, loans, and other possessions. Also, this is a 3-5 year process, versus a 3-6 month process for Atlanta Chapter 7 bankruptcy.
Many filers with enough income are now being forced to file for Chapter 13 bankruptcy instead of Chapter 7 bankruptcy. An Atlanta bankruptcy attorney can help you with the complex rules involved.
Alternatives to Atlanta Bankruptcy
There are alternatives to bankruptcy. Not only can you negotiate with creditors on your own and set up repayment plans, but you can also stop creditor harassment if it’s crossing the line. Many file Atlanta bankruptcy simply because creditors won’t stop calling. Filing bankruptcy will not stop creditors. If they cross the line and are calling you all hours of the night or worse saying improper things to you, you are protected by law and can take them to court. Also, since you can negotiate with creditors yourself, you can avoid putting bankruptcy on your record at all.
Filing Bankruptcy with an Atlanta Bankruptcy Attorney
In many cases filing bankruptcy is your best option. No matter your financial state, you need to hire a professional Atlanta bankruptcy lawyer to help you with this case. You can successfully file for bankruptcy and be clear of debts in no time.
