When faced with massive amounts of debt, filing for bankruptcy is often the first step of the process. From here, you'll also need to make changes to your financial habits to keep you on the right track and help you rebuild your credit history in the wake of bankruptcy. This involves making a budget, and The Balance explains the steps you can take to do so.
When you consider filing bankruptcy in Georgia, you may think there is only one type of bankruptcy. Often you just hear people saying they are going to file bankruptcy, using it as a general term. Actually, there are multiple types of bankruptcy. They are called chapters and are numbered. For example, you may file chapter 7 bankruptcy. The chapter you file depends on your situation.
Having any type of debt has some effect on your credit rating in Georgia. However, not all debt is created equal in the eyes of the credit bureaus. One type of debt that they may treat in a different way is medical debt. Due to the state of healthcare many people have medical debts on their credit records. It is not uncommon at all. It is also a special type of debt because it is much different than credit cards or loans. Typically, if you have medical debt, it is because you truly cannot afford to pay it.
Many people in Georgia are scared of bankruptcy. In fact, it could be a good financial decision in some cases. That is because there are some things bankruptcy could do that simple debt restructuring would probably not accomplish.
When the subject of bankruptcy and business comes up, frequently people discuss Chapter 11 and Chapter 7 as options for companies when they fall on hard financial times. If you own a Georgia business and are experiencing financial problems, you may wonder if Chapter 13 bankruptcy has anything to offer you. Whether you can file for Chapter 13 will depend on the type of business you have.
If you are someone with deep debt issues, watch out. There are many parties out there who will claim to solve your financial issues with their credit counseling services. However, some counselors are not legitimate and may try to scam you. Anyone who is looking for a reputable Georgia credit counselor should be aware of what makes a credit counseling agency legit.
As a Georgia resident who is currently dealing with increasingly overwhelming debt, you may be thinking about whether filing for bankruptcy may give you the fresh financial start you need. You may, too, be wondering how doing so could potentially affect some of your most sizable assets, such as your home. Ultimately, whether you will lose your home when you file for bankruptcy depends on several factors, among them the type of bankruptcy protection you choose to pursue.
There can be many reasons that people in Georgia avoid filing for bankruptcy, even when they cannot find any other way out from under a mounting pile of debt. One of the concerns commonly held by consumers is the fear that they may never be able to get credit again if they go through a bankruptcy. This is simply not true. Post-bankruptcy, people can get credit cards, automobile loans and even mortgages if they take the proper steps.
If you are considering filing for bankruptcy in Georgia, one of the first decisions you will need to make is whether to file Chapter 7 or Chapter 13. It is a good idea to familiarize yourself with both options. It may also help to look at the specific differences. This can help you to better understand which option will be the best choice for you.
If you live in Georgia and feel as if your finances are spiraling out of control, you may be weighing your options and trying to determine whether bankruptcy may help you find the fresh start you need. While the process can sometimes prove complicated, the amount of misinformation out there surrounding the process can convolute matters even further, making it difficult to separate fact from fiction. At Harris and Hartman Law Firm, P.C., we recognize that many misconceptions surround the bankruptcy process, and we have helped many people facing similar situations make educated decisions about their finances.