The present housing market, soaring medical costs and rising gas prices have sent many individuals and families into financial crisis. If you are unable to pay your mortgage, and creditors don’t stop calling, it is time you need to essentially seek advice from a chapter 13 bankruptcy lawyer in Atlanta.

Chapter 13 Bankruptcy, What Is It All About?

Chapter 13 Bankruptcy law enables individuals to repay some or all of their debts under a bankruptcy repayment schedule of 3-5 years. While Chapter 7 Bankruptcy involves liquidation of all unsecured debt, Chapter 13 Bankruptcy does not automatically discharge debts, but allow individuals to keep some of their belongings.

Filing for Chapter 13 Bankruptcy helps to stop home foreclosure repossessions, proceedings and end wage garnishments or creditor calls. In order to file Chapter 13 Bankruptcy, an individual should essentially have a constant source of income to meet bankruptcy repayment schedule requirements.

Working of Chapter 13 Bankruptcy:

With Chapter 13 Bankruptcy, individuals are required to create a bankruptcy repayment schedule and will require making the payment to the trustee. All the outstanding debts will be prioritized and paid according to the bankruptcy law. After opting for Chapter 13 Bankruptcy, debts will not be discharged instantly, but by the end of the bankruptcy schedule.

Why do you need Chapter 13 Bankruptcy Lawyer Atlanta?

Filing for personal bankruptcy has become more difficult with the new bankruptcy laws. By filing Chapter 13 Bankruptcy, many individuals who may be eligible for Chapter 7 Bankruptcy will now be forced to repay some or all of their debts.

Present bankruptcy is governed by centralized rules and regulations. Although you can file for bankruptcy on your own, it is always recommended to opt for Chapter 13 Bankruptcy Lawyer.

If you’re in debt, you probably know you’re not alone. In today’s tough economy, millions of consumers owe money, and as a result, there are many different debt options to help them recover. The trick is to find the option that works best for you, and the truth is, there’s no clear winner. While an approach such as debt settlement might work for some, credit counseling might work better for others. It all depends on each one’s particular case.

Filing bankruptcy is another alternative to getting a “fresh start”, but due to the New Bankruptcy Law, going bankrupt has become more complex and expensive than ever before. The new law that went into effect in 2005 added new requirements and regulations that have made the process of filing bankruptcy more complicated.

Less Consumers Will Be Given A “Fresh Start”

According to the new law, consumers with an income higher than the median for their State won’t be allowed to file under Chapter 7 and see most of their debts cancelled. Instead, they’ll need to file under Chapter 13 and commit to a repayment plan. This repayment plan could last up to five years.

More Consumers Will Have To Live With Less

While under the old law the court decided what were basic living expenses in order to calculate a debtor’s disposable income, under the New Bankruptcy Law, the IRS will make this decision for all debtors whose income is higher than the median for their state. Doesn’t seem like a big deal, does it? The problem is that actual living costs are generally higher than the allowed expenses established by the IRS.  This means many debtors will have to live on less money since, for instance, internet, cable, and eating out might not be regarded by the IRS as basic needs.

Consumers Will Need To Spend More Of Their Time and Money

Under the new law, consumers will need to take Credit Counseling and money management classes within the six months before filing. Needless to say, they must pay for these services. Moreover, Bankruptcy Attorney fees are higher than what they used to be. Why? Simple: the new law requires a Lawyer to vouch for the precision of his client’s paperwork. Any inaccuracies could mean he’ll be fined. Thus, there’s more liability involved in each bankruptcy case, and with more liability comes more time devoted to each client and, as a direct consequence, higher fees.

Is Filing Bankruptcy Your Best Option To Getting Out of Debt?

Sometimes it’s just the last resort. Keep in mind there are other debt options to fix your finances. Approaches such as debt settlement and credit counseling have proven to be effective in many cases. However, sometimes a consumer is so deeply in debt bankruptcy truly is the only option he has.

Because every case is different, I advise you to keep researching about your different financial options. If bankruptcy is a path you’re seriously considering taking, contact a Bankruptcy Lawyer to examine your case in detail. Don’t jump into any decision yet. Take the time to analyze your situation and the results of choosing one financial alternative over another.

While some consumers may consider filing for bankruptcy without an attorney, respected Los Angeles, California bankruptcy attorney Shemtoub of the Wilshire Law Group advises strongly against it. Shemtoub has seen too many instances where individuals who try to “do it alone” end up putting themselves in a worse financial situation than they were in before bankruptcy. In other words, they accomplish the exact opposite of their bankruptcy’s goal.

The Dangers of Filing for Bankruptcy without an Attorney

Consumers who get in over their heads with debt and find themselves facing bankruptcy may be tempted into filing for bankruptcy without an attorney. After all, with all the money they already owe, and with the option to file without an attorney, why not avoid hefty legal fees and file without an attorney?

Nothing could be a worse idea than filing for bankruptcy without an attorney. US bankruptcy laws are complex; the bankruptcy court main website expressly states that “While individuals can file a bankruptcy case without an attorney… it is extremely difficult to do it successfully” (Source: USCourts.gov). The same website goes on to state:

“It is very important that a bankruptcy case be filed and handled correctly. The rules are very technical, and a misstep may affect a debtor’s rights… hiring a competent attorney is strongly recommended.”

As if the federal laws governing bankruptcy weren’t complicated enough, there are also all the additional state laws. A bankruptcy lawyer in California, for example, has to stay up-to-date on all the latest bankruptcy statutes specific to the state. It’s easy to see how, without an experienced California bankruptcy lawyer, consumers can easily find themselves confused, overwhelmed, and making mistakes that cost them a fortune.

About  Shemtoub and the Wilshire Law Group

Shemtoub and the other bankruptcy attorneys in the Wilshire Law Group have years of experience guiding consumers and small businesses through the challenging process of bankruptcy. The testimonials posted onto the Wilshire Law Group’s website bears witness to their great success with countless clients in Southern California.

Shemtoub is a bankruptcy attorney in California who stands by his clients throughout the entire process of bankruptcy, even through bankruptcy’s aftermath. The same holds true for each of the lawyers in the Wilshire Law Group. From the free consultation at the beginning of the process, to the bankruptcy filing itself, to post-bankruptcy educational seminars designed to help consumers repair their credit and their financial lives, the Wilshire Law Group is a firm that is clearly dedicated to its clients.

The Wilshire Law Group also makes one unique promise to all clients and potential clients that makes them stand apart from the crowd: their guarantee is to return all phone calls within twenty-four hours. The twenty-four hour phone call promise shows that every client, no matter how big or how small, is valued at the Wilshire Law Group.

Filing bankruptcy is a nightmare for anyone. While it is not something you might like to even think about, there might come a time when you might have to comprehend the bankruptcy laws and file one yourself. But how can you know whether filing bankruptcy is the right thing for you? Or whether you can prevent it? What exactly is bankruptcy?

For starters, bankruptcy is a federal court process to help individuals and businesses repay their debts under the protection of the bankruptcy court (Chapter 13 Bankruptcy) or get rid of their debts completely (Chapter 7 Bankruptcy). If an individual or business files for bankruptcy, the court issues a stay that prohibits creditors from taking any action to recover the debts from you without court approval.

Bankruptcies fall under to broad categories – liquidation and reorganization. US bankruptcy laws cover liquidation under Chapter 7 Bankruptcy, which allows your assets to be sold off or liquidated to pay off your debts.

The other type of bankruptcy – reorganization is more commonly referred to as Chapter 13 Bankruptcy. Under reorganization bankruptcy, a repayment proposal is worked out with the court and accordingly some debts are repaid in full, others as a percentage of the original debt while some others are signed off without repayment. A reorganization bankruptcy would usually be spread over three to five years.

But after filing for reorganization bankruptcy, it is very important you stick to the repayment plan because it is only at the end that creditors might grant you new credit. While a liquidation bankruptcy stays on your credit history for 10 years and you are denied credit during this period, a reorganization bankruptcy can be cleared off your credit history after 6 years. And depending on your repayment record, you can reestablish your credit.

Bankruptcy filing has serious consequences and bankruptcy laws don’t look easily upon individuals or businesses filing for it. The decision to file bankruptcy should not be taken easily because having your debts erased does not miraculously solve your long term financial issues. This can only be a once in a lifetime resort to get out of crushing financial burden brought on your by job loss, medical bills, or other circumstances that are out of our control.

The best way to avoid bankruptcy is to be both “penny and pound wise,” meaning practicing good money management. This includes avoiding impulse spending, not using a credit card unless you have the cash to pay it off, tearing up any special credit card offers received, devising and following a realistic budget and covering yourself adequately by insurance (medical, homeowners, auto). At the same time, you need to make sure you don’t speculate too much or fall into company with people who have questionable financial habits.

A commonly asked question today is, what exactly comprises bankruptcy law? This question can not be answered in one sentence. But if we were to simplify matters, then we would say that it is that branch of the law that concerns those people who have had to face financial failure. This occurs when he or she is officially not able to pay off the money that he or she owes, for whatever reason. Even though this may be asked for by those want payment, at least in part, of what is owed to them by someone who has fallen on hard times.

More often than not, the person who is facing financial ruin files for bankruptcy.

Now, what these laws deal with is settle the debts with those who are owed money, often a small part of the total owed. It also gives the non-payer a second chance since the law frees him of most of the debt that is to be paid. How exactly is this achieved? Well the answer is simple – this is where the distribution of the “non-exempt” assets comes into play. Also, the person going into bankruptcy does not have any control over his available funds.

During the course of the whole action, the person who is in debt is also shielded from further collection action by disallowing the creditors to sue or attempt to collect the entire debt.

However, many often pretend to be in a bad way just to escape paying off the money that is owed, even though one has the means to do so. Another deception would be receiving goods that one has no intention of paying for. Many use loopholes to get their business done that cannot always be declared as illegal but are not exactly legal or ethically right. This is similar to tactical bankruptcy which is used for an individual’s own benefits and which is not against the law specifically, but can prove to be dangerous. Today, people face financial devastation more often than in earlier years. Companies do not make the grade, so they file for bankruptcy. Sometimes these cases are categorized.

Today, however, they are not treated in a different manner. They are not made to undergo intense scrutiny in one area when the reason of the bankruptcy is in a different area. This only results in a waste of time for both the parties.