Bankruptcy · Augusta · Dublin · Statesboro
Bankruptcy, explained honestly.
Most of what people believe about bankruptcy is wrong, and that bad information keeps good people stuck. Here is plain, straight information about how bankruptcy really works in Georgia, who it helps, and what it can do for you. When you are ready to talk, the first conversation is free.
Bankruptcy & your credit
Your credit is not ruined forever.
One of the biggest lies told to the American public is that filing bankruptcy ruins your credit for good. It is simply not true.
A bankruptcy can stay on your credit report for seven to ten years, but that does not mean you will never get credit again. We provide consumer bankruptcy and debt relief to people throughout the Augusta, Statesboro, and Dublin areas, and our focus on this one area of law lets us give you honest, accurate answers to the questions that may be keeping you from a fresh start.
What really happens to your credit after bankruptcy
Once you receive your discharge, the debts included in your bankruptcy are wiped out. That gives you a far healthier debt-to-income ratio in the eyes of lenders. Many people start receiving credit offers within about six months. Early offers may be secured cards or come with conditions, and those can be useful tools for rebuilding. As a rule, the higher your credit score is when you file, the higher it will be when you come out.
Be careful which offers you accept and how much you take on. Read the terms, pick the ones that actually help you, and let your score recover over time. Eventually you become eligible again for traditional lending, including home and auto loans.
Is bankruptcy right for you?
Who bankruptcy actually helps.
Many people think bankruptcy is only for those who are flat broke or got themselves into trouble. That misconception keeps the very people who would benefit most from ever looking into it. We have helped people from every walk of life file, including executives, lawyers, doctors, real estate agents, laborers, office workers, and recent college graduates. There is no single type of person who is a better candidate than another. Who should consider bankruptcy? Anyone who is struggling financially.
How do I know if I am a good candidate?
You do not have to wait until the collection calls start. If your income barely covers your monthly bills, it may be time to learn about your options.
Common signs bankruptcy may help
- You rely on credit to bridge the gap between income and expenses.
- Your minimum card payments never seem to lower the balance.
- You lost income or became unemployed.
- A large medical bill is crowding out your other bills.
- Creditors are threatening to sue you.
- You are behind on your mortgage and may face foreclosure.
- Your lender is threatening to repossess your car.
The Georgia bankruptcy means test
The means test is one of the main things used to decide whether you can file under Chapter 7. It compares your income to other Georgia wage earners. If you do not pass it, you can still seek protection under Chapter 13.
If your income is above the Georgia average, the test starts with your monthly income and then subtracts the expenses the law allows. The process is detailed, and we know how to account for every deduction available to give you the best chance of qualifying. If the numbers show you do not qualify for Chapter 7, we may be able to adjust them where special circumstances affect your income or expenses.
Taking control of debt
Small changes, real progress.
At tax time each year, a lot of people look back and wish they had handled money differently, usually wishing they had saved more. When you are already struggling to meet monthly bills, setting aside money from each paycheck can feel impossible. A few small changes still make a real difference.
A few habits that help
Pay for things with cash instead of credit, since you are less likely to spend money you do not have. Focus on paying off one credit card at a time, and remember that minimum payments alone will not get you there. Set up a small automatic transfer to savings, even a few dollars a week adds up. Change one thing at a time so you are more likely to stick with it, then start the next.
Avoid the tempting traps
When money gets tight, it is easy to reach for a fix that hurts you later. Pulling from an IRA, 401(k), or other retirement savings is borrowing from your future self. If you cannot cover your bills while you are working, those same bills will be even harder to pay in retirement.
Borrowing to stay afloat, whether from a retirement account, a bank, or family, comes with costs and interest, and it bets on having more money later, which is never certain. And if you refinance or take out a home equity line, you risk owing more than your house is worth.
Debt relief strategies
If you are overwhelmed, there are several ways to deal with heavy debt. For some people, bankruptcy is the smartest option. A Chapter 7 filing can erase many unsecured debts, and a Chapter 13 can make it possible to keep your home. If you are not sure what is available to you, talk it through with a debt relief lawyer who can walk you through the options.
How bankruptcy protects you
The moment you file, the pressure stops.
Mortgage company abuse
The more the government does to protect homeowners from unethical mortgage practices, the more creative some companies get at bending the rules. The constant changes have made the law nearly impossible to follow for anyone who does not work in it daily, which puts homeowners at a disadvantage. Some lenders use that confusion to charge bogus fees, collect interest they have no right to, and push products with terms that serve the lender, not you. We help you understand where you actually stand.
Foreclosure
If you are struggling to keep up with your mortgage and worried about losing your home, you are not out of options. Filing bankruptcy stops collection activity, including a foreclosure, and can give you the time to get back on a steady path. We are committed to working with you to find a solution that lets you keep your home and take back control.
More on stopping a foreclosure in Georgia →
Stop debt lawsuits
If you are behind with any creditor, a card company, a hospital, a landlord, even a friend who loaned you money, that creditor may be able to take you to court. If you have been served with a lawsuit, act quickly, because ignoring it leads to worse outcomes. Once you file a Chapter 7 or Chapter 13 petition, collection activity must stop, and that includes most debt lawsuits.
Stop repossession
For most people a reliable car is not optional. When money is tight, car payments are hard to keep up, and falling too far behind can lead your lender to repossess the vehicle. If you are behind, or you have gotten a notice that your lender intends to repossess, talk to a Georgia bankruptcy lawyer as soon as you can. We can often stop a repossession and help you keep your car through a Chapter 7 or Chapter 13 filing.
More on stopping a car repossession →
Stop creditor harassment
One of the first things our clients tell us they feel after filing is relief that the harassing calls and letters have stopped. That is thanks to a part of the bankruptcy code called the automatic stay. Once a creditor is notified of your filing, it has to halt collection activity, including calls, letters, garnishments, foreclosures, repossessions, and lawsuits.
How long before the collectors quit calling?
This is one of the most common questions we hear after filing. There is no exact answer, but here is how it works. Once your petition is filed, a notice goes out to the creditors in your case, and they must stop collecting once they receive it, which usually takes around two weeks. If you get a call right after filing, you can give the creditor your case number and it has the same effect as the written notice. If a creditor keeps calling after being notified, tell us. We will let them know we are handling your case, and if they keep it up, we pursue every option to enforce the automatic stay.
Medical debt relief
Most people take their health for granted, and almost no one plans for a serious illness or injury. Even with insurance, a single illness can leave you owing thousands. For a family already living paycheck to paycheck, one unexpected medical bill can cause real distress. If medical bills are making it hard to get by, talk to a Georgia bankruptcy attorney about your options. And yes, your doctor will still treat you.
Common bankruptcy myths
Setting the record straight.
A lot of misinformation about bankruptcy has been around so long that people assume it is true. Here are the ones we hear most.
"If you file, you can never get credit again."
For many people, conditional credit offers start arriving within about six months. Once you build a little payment history, you become eligible for regular credit and, eventually, traditional lending like home and auto loans.
"You will lose everything you own."
Often the opposite is true. While a Chapter 7 trustee can sell non-exempt property to pay creditors, in practice the trustee usually decides that what is owed on your secured property is more than it is worth, so you keep it.
"After the 2005 laws, hardly anyone qualifies."
Nearly everyone who qualified before the law changed still qualifies today. For some people there are just a few extra steps in the process.
"If you need to file, you must be a deadbeat."
Not at all. Nobody wants to face financial hardship. Job loss, medical bills, divorce, and many other causes have pushed even financially secure people into serious trouble. Often, filing is the responsible thing to do.
Ready to talk it through?
Let's find your fresh start.
One free, confidential conversation tells you where you stand and what your options are, with no obligation and no judgment about how you got here. Text is the easiest way to reach us, and we will get right back to you.
P.S. You do not need to understand any of the law to get help. Tell us what is going on in plain words, and let us do the rest.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. We serve clients throughout Augusta, Dublin, Statesboro and the surrounding CSRA. The information on this page is general and is not legal advice, and contacting the firm does not create an attorney-client relationship. Every situation is different, and outcomes depend on the specific facts of your case. Prior results do not guarantee a similar outcome.