Are you drowning in debt and seeking legal assistance? Check out this article to learn more about our Georgia bankruptcy attorneys. Call us!
Being faced with the possibility of bankruptcy is often overwhelming. For many people, the sense of failure that comes with bankruptcy keeps them from moving forward, making things even worse. If you’re struggling financially, it’s important to seek reliable information about your options.
If you’re reading this, you’re probably under tremendous pressure financially. You may feel as though there’s no way to climb out of the debt you’ve accumulated. You may be behind on your bills and your mortgage. You are probably stressed and wondering who can help you with a bankruptcy case.
We are here to help. Our firm offers free legal consultations. Call our Georgia bankruptcy attorneys in Statesboro, Springfield, and Swainsboro today.
Don’t let your situation go on another day; inaction in these situations only makes them worse. Give us a call as soon as you can and schedule a free legal consultation.
The information below will help you understand your bankruptcy case. We’ll begin by making you aware of some of the common ways you can accidentally damage the value of your claim.
Common Bankruptcy Case Mistakes
There are several mistakes you can avoid in your bankruptcy case simply by being aware of them. Read through a few of the most common mistakes below to protect your claim.
Repaying a Family Member Instead of Your Creditors
Some people on the verge of bankruptcy figure that payments to their creditors won’t make any difference in the overall solution, and instead focus on paying back money they owe to family members.
While it’s important to maintain your family relationships, know that the law does not permit you to repay family members at the expense of your other creditors. If the bankruptcy trustee discovers payments to a family member in lieu of a debt to a creditor, that money can be reclaimed within a year of filing for bankruptcy.
Running-Up Your Credit Cards
Once you decide to file for bankruptcy, you need to stop using credit cards. If you make purchases within 90 days of filing, they may be considered non dischargeable — meaning, the bankruptcy will not eliminate those debts.
The same rule applies to large cash advances. The last thing you need is to trip yourself up with new debt just as your old debt is wiped out.
Borrowing Against the Value of Your Home
Getting a second mortgage or a home equity line of credit (HELOC) to pay your consumer debt is a mistake. While in many cases, you can file for bankruptcy in a way that does not jeopardize your ability to keep your home, borrowing against your home puts it up as collateral.
Debt that is extended to a person because they put up collateral is called “secured debt.” When you borrow this way, whatever you’ve put up as collateral can be taken away if you don’t pay back your debt on time.
Taking out a second mortgage or HELOC means you just volunteered your home as payback toward that loan if you can’t make your payments. Don’t turn your unsecured debt into secured debt; borrowing against your home is a mistake.
Raiding Your Retirement Account
Your retirement account is probably protected from being collected to pay back your debts. If you turn to it to avoid bankruptcy, not only will you be throwing “good money after bad,” but there is likely to be a very steep penalty, leaving you with very little to put toward the debt you’d hoped to repay in the first place.
Not Hiring a Lawyer as Soon as Possible
Reacting to the understandably scary possibility of bankruptcy with denial is not uncommon, but it leads to a “domino effect” of problems. People in denial often fail to take any action toward a solution to their problem, including finding an attorney to give them guidance about bankruptcy.
Waiting is only going to make things worse. If you’re worried about bankruptcy, it’s much better to tackle the problem head-on than “bury your head in the sand.” Our Georgia bankruptcy attorneys will educate you about the bankruptcy process and your options for discharging debt. If you then choose this route as your best solution, our attorneys will guide you through to make it as stress-free as possible.
Call Our Georgia Bankruptcy Attorneys Today
Are you or a loved one in the process of filing for bankruptcy in Georgia and have questions about your spouse’s bankruptcy affecting your credit in Georgia? Contact the experienced Georgia bankruptcy attorneys at Hall & Navarro in Statesboro, Springfield, and Swainsboro today for a consultation and case evaluation. We can help get your life back on track.