An Overview of Bankruptcy Lawyers

Bankruptcy laws are very complicated and it is nearly impossible for any average person to understand them that is why it is essential to hire a bankruptcy lawyer. The bankruptcy laws become more complicated after some amendments that have been made by the court recently. A good lawyer can help you a lot in choosing an accurate chapter of bankruptcy for you.

The bankruptcy lawyers specialize in the rules and laws which are related to the bankruptcy. However, it is also important to know that not every lawyer is experienced in the particular laws of the state. That is why it is highly advised to hire a local lawyer who has some good information about different laws of bankruptcy of your state. The laws of one state can be different from the other. So, before choosing a lawyer make sure that he/she has enough experience of working in your state.

Actually filing bankruptcy is a life changing experience for everyone and lots of emotions are attached to it. Therefore, you want to hire a person who understands your feelings and who also understands that from which phase you are going through. A good and experienced lawyer will exactly know how to handle any kind of fears or concerns of his/her clients.

Your budget is a key element, when filing your bankruptcy. It is very essential to have a perfect understanding of your budget. Generally these lawyers charge pretty high fee for their services. A client is responsible to pay for the actual bankruptcy and these costs depend on the different kind of bankruptcies.

For example the chapter 7 bankruptcy runs around the $350. Then, a lawyer will charge more or less $1000 to $2500. If the fee of the lawyer is too high for you then try to find any other lawyer. But also keep it in your mind that these legal services have some charges and it will be good for you to pay a bit more for a trustworthy and an excellent lawyer.

Choosing a reputable lawyer is very crucial for the results and outcome of your case. No one wants to choose a lawyer randomly and we all know that blindly choosing a lawyer could have some really negative impacts on the final outcome of the case. When picking a lawyer, ask your friends, family and colleagues for the recommendations.

Do not pick any bankruptcy lawyer randomly or at the last minute. Perform some advance research and planning before making any final decision. It is extremely important that you work with a lawyer who dedicated his/her self in this particular field of bankruptcy. If you hire a good lawyer then he or she will make the overall process simpler and easier.

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Filing for Bankruptcy - Look Before You Leap

In the event of unpaid debts, it is advised to call or e-mail law firms, before attempting any desperate measures such as raiding one's retirement plan, transferring property, or transferring credit card balances. One must consult bankruptcy lawyers, before making such hasty decisions.

Make sure that experienced bankruptcy lawyers are contacted if one has been sued or if there remains a pending judgment. Once a judgment has been issued, the underlying debt becomes a secured debt and can be paid off by seizing bank accounts, garnishing wages or seizing property.

Note that bankruptcy is not a good solution if one is elderly and/or has no assets that a creditor could garnish (social security wages, as an example) or seize. Even if one has non-exempt assets and debts such as student loans, an Atlanta bankruptcy attorney always advises not to file for bankruptcy.

It should be known that bankruptcy for individuals if of two types- Chapter 13 and Chapter 7. A Chapter 13 bankruptcy is also referred to as a "wage earner's plan." In this scenario, debts can be paid off over a period of 3 to 5 years by individuals without paying any interest on payment towards debt. One cannot be sued while using the Chapter 13 plan and even does not need to sell its properties or assets to make payments. However, Chapter 7 is a liquidation bankruptcy, which helps the individuals to pay their unsecured debt in an efficient manner. Homes are seized only when it is currently not on mortgage payment, and even then one can work with Atlanta bankruptcy attorney to modify these payments outside of the bankruptcy case.

Filing for bankruptcy is not the only mode of making debt payments. It is important to decide which mode to select, based on one's ability to pay. One of them is loan modification. The bankruptcy lawyers can help negotiate with the lenders, to lower car and home payments, and also prevent foreclosure. Another mode that can be considered is debt settlement. When there is simply not enough balance on one's credit cards or medical bills to cover the cost of bankruptcy, debt settlement is an alternative. However, it is important to be careful of companies that claim to take certain items off one's credit report, as they are scams. Sometimes, debt settlement ends up being ineffective, as one ends up paying a part of the lowered payment to the debt settlement company every month, for "negotiating."

Get consultation from our team of experienced attorneys, lawyers, CPA's and IRS enrolled agents for Bankruptcy lawyers and Atlanta bankruptcy attorney.

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Filing for Bankruptcy Before, During or After a Divorce

At certain times in life, one bad thing leads to another. This seems to be the case when it comes to bankruptcy and divorce, with the two sometimes being inextricably linked. Whether it is financial problems that lead to marital discord, or it is the divorce itself that brings about unsustainable financial obligations, knowing what to do in this difficult situation is essential in keeping your current quality of life.

The sad reality is that both have the very real possibility of influencing each other and can present major problems if not approached in the proper manner. Understanding your options before, during and after a divorce can keep you from being dragged into a financial-legal crisis.

Prior to Divorce

In an ideal scenario, the bankruptcy filing will be handled prior to the divorce proceeding. This will enable the two parties to mutually decide how to divide their assets in the most equitable manner possible, while also deciding the debt burden that each is obligated to assume.

As long as the parties are still married, they are able to file a joint bankruptcy petition, even if they are separated at the time. This process will usually only work when the parties are able to cooperate with each other and with their attorney. The most beneficial aspect of filing before is that the divorce can proceed with the issue of marital debt having been fixed. This should allow for a more amicable and fair settlement.

During Divorce

Dealing with the bankruptcy process in the midst of a divorce has the potential to make a complicated process even more difficult, but may in fact be necessary, depending on the situation.

Whether one or both spouses in a divorce should file for bankruptcy depends mostly on the amount of debt in each party's name, along with whose name the marriage assets are titled. These assets include houses, cars and financial accounts. Discharging the debt of one spouse, while saddling the other spouse with high levels of money owed, does not fix the overarching issue of who must pay for the remaining marital debts.

Once the spouse files for bankruptcy, the bankruptcy court will issue an automatic stay. This disables creditors from continuing to try to collect any outstanding debts that have yet to be paid. The automatic stay also prevents the divorce court from moving forward.

Similarly, the divorce court will be unable to divide property between the spouses until the bankruptcy court has made a determination of which assets are exempt from the bankruptcy. It must be noted that exempt property cannot be sold by the trustee to pay off debts.

Post Divorce

Some formerly married individuals may choose to file for bankruptcy after the divorce with the intention of getting rid of some or all of the debts they were required to pay as part of the divorce order. Specific types of debts, however, are not dischargeable in either a Chapter 7 or Chapter 13 filing. This generally has to do with support obligations, which include child support and alimony. These types of obligation MUST be paid.

Property settlements may be dischargeable in certain scenarios. Non-support obligations, like the money owed in a property settlement, are not dischargeable in a Chapter 7 bankruptcy, but may be in a Chapter 13 filing. This is unless the court finds that the money owed is in fact a support obligation.

For those worried that their spouse will file for bankruptcy after the divorce is finalized, there are some protective options that they have in regard to this. These include indemnity agreements, property lien's, support obligations and title changes on joint debts.

With an understanding of what can be done before, during and after a divorce when it comes to filing bankruptcy, you will be certain to approach this complicated situation in the most efficient manner possible.

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Simple Tips On Managing Personal Debt With Success

The first lesson to managing your personal debts with success is staying grounded. This means you don't have to freak out each time your phone rings or every time there's a knock at the door. Accept that you have gotten yourself into this situation of overwhelming debt and also believe you will come out on the other side of this situation.

Many people acquire lots of debt during their lifetime. Yes, it may be perceived as a bad situation but it is not the end of the world and you are not alone. Just look around and you will see others who are going through similar or worse situations than yourself. So, now is the time to decide you will change things for yourself.

Credit card debt is the number one cause of financial debt that most people incur. There's something about the comfort of owning a credit card that makes it hard for most to resist when it come to making purchases. It's quite a temptation to know you can purchase something you desire without having the money on hand.

This is where the road to debt begins. Before you know it you are buried under a mountain of uncontrollable spending, and your finances are whirling away before your very eyes. It's time to start your financial healing journey.

The good news is your financial problems can still be manageable without having to seek the help of a professional. Here are some simple steps you can take to start your personal debt changes.

1. Start avoiding temptations. For example, if one of your weaknesses is food and yet you look at magazines or TV shows that only pique your curiosity and appetite more, as a result, you will indulge on your cravings even though you still cannot afford it. You will tell yourself that you will only use your credit card just this time.

BUT the process won't stop. The temptations won't go away as long as you succumb to its every call. So as much as you can, avoid it so that you will succeed in not thinking about it. Let this be part of your healing process. Stay away from pictures and shows of mouth watering foods until you KNOW you can handle the temptation without dashing off to some place immediately to buy.

2. You must have a complete overview of how much your overall debt amounts to. You should get an exact calculation of how much money you acquire each month. You have to allocate funds wisely. You need to make sure that you pay off your debts even if it's little by little. This is better than not paying anything at all. Selecting not to pay anything, causes the interests to build until you can no longer even think about how you can afford to pay on your debts because it has become so unimaginable.

3. If you are settled on paying all of your debts, you must stop acquiring more. You can call your creditors and ask for a suitable payment plan. You might bargain for the interests to stop completely. You can also tell them that you will just pay everything out and dedicate yourself to doing just that. You can even ask for their suggestions on how you will be able to do that faster.

These are the simple tips to managing your personal debts with success. Be determined to do whatever it takes. Keep your focus on doing everything right. Decide to pay cash for your purchases instead of charging it to credit cards. Thinking about and making sound decisions about each purchase you intend to make in your life from now on is a great habit to create to managing personal debt.

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Your Debts In Negotiations

Debt negotiation is one of the most underutilized tools in debt relief efforts today. Why? People either don't know they exist or are too afraid to pursue them. Although dealing with creditors is never something we want to do, a simple phone call can save you thousands and even keep you out of default.

How It Works

Debt negotiation is essentially a conversation that results in an agreement between you and your lender, which outlines a modified plan for your debt. In other words, you are arranging a plan to repay your debts in a way that suits your budget and keeps you out of delinquency. In most cases, debt negotiation can lead to a reduction in the amount owed, a lowered interest rate, and even a temporary suspension in payments for a short time.

When you enter into a negotiation about your debts you should know that your lender may not appear willing to work with you at first. This is normal. Your creditor wants to recoup as much of the loan as possible and minimize loss. Therefore, they may not be too open to help you at first. The key is demonstrating your financial hardship and proving that you are serious about debt repayment.

Closing The Deal

Too often people threaten their creditors with bankruptcy or act without preparation. Just like any good negotiator, it is important to stay calm and know what your plan of action is going in. First, review your financial situation and determine how much you can afford to pay each month. Next, consider what type of modification to your account is the most helpful. Do you need a short break from making any payment or would you rather have a lowered debt balance? Last, organize your paperwork and be ready to provide proof of your financial trouble to your lender.

When calling to negotiate with a creditor, skip the regular employee and request a manager right away. Explain your financial situation and offer to provide them proof of why you can't afford your payments. Provide the creditor with a possible solution to your debt troubles and even tell them what you can afford. Most of all, be flexible. Remember that creditors are not required to work with you, but do so out of a courtesy. Debt negotiation is a right, but securing an actual agreement is a privilege. Therefore, the burden of effort in on you.

The Lee Law Firm aims to provide local residents with high quality legal representation at affordable rates. Their attorneys specialize in all aspects of credit negotiations. As Dallas debt lawyers, the Lee Law Firm attorneys understand the pressures their clients face as they battle a financial hardship.

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Money Is Just Money Right?

I have said it over and over again that when all is said and done - money is just money. It does not matter where it comes from as long as you (or your business) can use it as it needs to be used - to add additional value.

Money does not matter. What matters is what you can buy with that money - which is related to price, not money itself.

Thus, money is just money. Money is just another asset to a small, growing business; an asset that should be used to its greatest potential.

Having said that and the reason why has to do with, not money itself, but how you get it; how you get money and use it in your business.

Money can be expensive if you let it - meaning that you use it improperly or get it for the wrong things.

Do know that when you take a loan from a bank or lender - you are essentially buying money.

Example: Short-Term vs. Long-Term Debt

It should make sense that if your business has short-term financing needs, then it should use short-term financing loans.

And, the reverse should make sense also - if you have long-term financing needs then long-term financing loans should be pursued.

Let's say you need short-term financing of $100,000 (for 60 days) for the conversion of some financial assets - like getting paid for an order already completed, invoiced and shipped.

From that $100,000, your company will make $30,000 in profit or 30%.

Let's say that this financing costs your business 25% annually. Thus, for an amount of $100,000 - that money would cost $25,000. That is a lot of money to pay in interest. However, since you are only using it for 60 days, that loan's true cost is only about $4,200 - much more agreeable. Still leaving your firm some $25,800 in profits.

Now, let's look at long-term financing.

Let's say that your business needs to buy a piece of equipment that costs $100,000 and has a useful life of 5 years - 5 years to spread that payment out over - allowing the assets (the equipment) to pay for itself through added revenue or cost savings.

That equipment, over the five years, will bring in additional value (profit value) of $30,000 per year to your company that you can use to make loan and interest payments as well as to plow back into your firm in growth and development.

Again, if you used short-term financing for this long-term need you would have to pay approximately $25,000 in interest each year leaving yourself little to no real profits (not what using that asset should provide to your company). In fact, your business would have to pay, not 25% of your profits, but over half or some $86,000 in interest over the 5 years.

But, if you look at long-term financing options - let's say $100,000 for 5 years at 8% and can spread it out over that time, your interest, your cost of that money, would only be $25,200. Leaving an additional $60,800 in profits for your business (now we are talking about using an asset as an asset is meant to be used - to build more value).

Short-term financing is priced and designed for short-term needs and long-term financing is priced and designed for long-term needs. If you can match the loan or the acquisition of that money to the need, then you place that assets in the correct position to provide all that it can for your business - it is that simple.

Far too many small businesses tend to abuse short-term financing (which can be easier to get) for their long-term needs and then when looking backwards are amazed to see that not only have they NOT grown their company but have taken several steps backwards - not what leveraging your business through outside capital is designed to do.

I have seen many business owners use their business lines of credit, business cash advances or business credit card (short-term financing vehicles) to purchase long-term assets like property, furniture and equipment because they were convenient to use (already in place). Yet, as the business tried to move forward, these same business owners struggled to pay back or pay down these debt instruments from long-term cash flow - not generated by the assets purchased with that short-term debt.

So, while money is money and can be used to finance trade terms (the time it takes your business to ship goods to the time your invoice gets paid) as well as to purchase a needed pieces of equipment - the money you have in hand can and will buy both.

However, using one form for the other can be devastating to your business as shown here - far too many businesses fail each and every day because they over paid in interest; essentially making the deal a loser financially instead of the winner it had the potential to be.

So, while money is money and can be spent on all the same things, what really matters is matching the one asset (money) with the needs or other asset needs of the business. Thus, all things, the need, the assets and the potential are all aligned to provide the greatest rewards to both the company and its owner.

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How To Negotiate With Your Creditors And Get Out of Debt

Credit card balances can creep up until you're buried under an avalanche of debt. Making only the minimum payment every month doesn't do much to shovel your way out. If you owe the national average of $14,900 on your credit cards, it will take you almost nine years to pay it off. Get rid of that debt faster by negotiating with your creditors to pay less than what you owe.

Write down the balance of each credit card, the interest and total balance. Determine how much money you have available to pay off the balance. Divide the total balance by what you have available to arrive at a percentage. For example, your credit card debt is $14,900 and you have $8,000 available you can pay 54 percent of the debt.

Add up what you charged for merchandise, products and services. Add up what you paid in interest, late fees, overage fees, penalties and any other bank charges. You may find that for that $14,900 balance less than half of it was for what you charged. This gives you some leverage in negotiating. You may find that your payments covered what you charged. In other words you've paid that money back over the years.

Write down the reasons why you can't pay the credit card in full. And why in the future you won't be able to. Use the fact that you've paid the bank over $xxxx in total payments and that covers what you've charged -- or covers 80 percent for example. Don't lie but do come up with convincing reasons why it's not possible the account will be paid.

Stop paying on the cards and stop using them as well. If you're current on the card, the bank won't be motivated to settle the balance. The bank has received the amount owed every month, so there is no reason to think that won't continue. Save the money and add it to your available settlement amount.

Wait three months before contacting the creditors. Enough time has to pass that the creditor believes that they may not receive any payment from you, much less you'll pay the account in full. Some banks are being aggressive on collections and may contact you when you're only 61 days overdue. Use the contact to set the stage for negotiations.

Contact one of the creditors by phone to inquire about a settlement plan. That first phone call probably won't be productive. The service representative will harangue you to make full payments to catch up. Insist on speaking with a supervisor. Note her name and the date and time you called. Ask for the loss mitigation program, the workout department or the settlement department, if the supervisor isn't negotiating with you. She may not have the authority but won't tell you that.

Offer an amount that is only 20 to 30 percent of your balance. The odds are it won't be accepted but it's low enough you can increase the amount.

Continue calling the creditors one by one until you have contacted all of them. Begin the process again in a few weeks. As you miss more payments the creditors will be more motivated to accept a settlement. When you are approaching 180 days without a payment, the banks will have to charge off the amount. That means it's no longer a collectible account and they can't show it as an asset on their balance sheet. Banks are more willing to settle the closer your account is to charge off.

Call the banks again. Mention that you talked to supervisor X on Y date and you'd like to settle your debt. The bank will probably counter with a much higher settlement amount, perhaps offering to lower the interest rate and eliminate late fees but still demanding the account be paid in full. You might be offered the opportunity to pay that amount over 24 to 36 months. Counter offer with a higher lump sum payment, perhaps 35 percent. Continue the negotiation until you feel the bank will go no lower. Some banks have a reputation for being hard nosed and preferring to pursue full payment through a law suit rather than settling.

Demand that the deal be in writing. Banks sometimes have forgetful memories. Or the person who made the deal leaves the bank, paperwork is lost, and notes aren't made on your account.

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