Question: My husband and I need to file for bankruptcy. I know that with our income and our debts, we will never be able to pay off our credit cards or our medical bills.
Things have gotten overwhelming and we just can't make the payments like we used to. I mean we can't make our minimum payments for just about everything. My husband had a good job at an engineering firm that his friend from Georgia Tech founded. But his friend got caught up in some government investigation and now he has to close the business and probably go to prison. My husband's been looking for a new job, but it probably won't pay as much as the old job.
I work for a dentist in Alpharetta but my income isn't that high. So I can't help with the majority of the bills.
When I asked my parents to borrow money they told me that they were considering bankruptcy. My father made some bad investments in real estate in North Georgia and he doesn't want to keep making mortgage payments he really can't afford. And his properties are all worth less than his mortgages.
We're scheduled to meet my parents to have a family meeting about bankruptcy. Please tell me how bankruptcy helps people. We live in Alpharetta.
V.F. in Alpharetta
Answer: Bankruptcy allows people to get a fresh financial start. It allows people to address their debts and to put in place a plan to get rid of debts that are burdensome.
Here are some ways bankruptcy helps people just like you:
It eliminates the legal obligation to pay most or all of your debts. This is called a "discharge" of debts.
Many people use bankruptcy to stop foreclosure on a house or mobile home and allows you an opportunity to catch up on missed payments. It does not automatically eliminate mortgages, but it can prevent a foreclosure and allow you to make affordable payments.
When you need to prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.
Bankruptcy can stop wage garnishment, debt collection harassment and similar creditor actions to collect a debt.
A bankruptcy filing can restore or prevent termination of utility service.
Some creditors make false claims and commit fraud and try to collect more money than you really owe. Bankruptcy allows you to get rid of these claims or reduce them.
As bankruptcy attorneys and debt settlement lawyers, we're here to help you get out of debt.
Attorneys Bill Sherman and Valerie Sherman and the team at the Sherman Law Group will help you navigate the entire bankruptcy system. We proudly serve the entire Atlanta metro area and North Georgia.