Bankruptcy Can Help Georgia Families Wipe Out Credit Card Debt

TRI Writer • February 17, 2022

Did you know that credit card debt is one of the most common problems for Georgia families? If you are suffering from financial difficulty, you are nowhere near the only one struggling with the problem. In many cases, Georgia families facing overwhelming credit card debt find that bankruptcy can help wipe out the debt entirely.

Bankruptcy Can Give Georgia Families a Fresh Start

Bankruptcy isn’t the only solution Georgia families can turn to when overwhelmed by credit card debt, but it is the only repair solution that eliminates debts and gives you a fresh start to rebuild a healthy financial future. Georgia families hoping to end the financial struggle created by overwhelming credit card debt can file Chapter 7 bankruptcy or Chapter 13 bankruptcy.

Filing Bankruptcy in Georgia:

Filing a Georgia Chapter 7 bankruptcy eliminates most consumer debts , and leaves filers with a fresh start. Georgia bankruptcy law does give the court-appointed bankruptcy trustee the power to well any “non-exempt” assets to pay back creditors, but many Chapter 7 bankruptcy filers don’t that doesn’t mean that the court will wreak havoc on your life. Many filers find that the court doesn’t sell anything they own when they go through Chapter 7 bankruptcy. To determine if you need to worry about the bankruptcy court selling your assets to pay your debts, discuss the details of your situation with an experienced bankruptcy attorney. Chapter 13 bankruptcy doesn’t work towards an immediate discharge like Chapter 7, but instead reduces and restructures debts and creates a more approachable method of getting out of debt with a monthly payment to a court-appointed bankruptcy trustee throughout a 3 to 5 year repayment plan.

Doesn’t Bankruptcy Hurt My Credit?

If you aren’t declaring bankruptcy because it “hurts” your credit, you should discuss the details with an experienced attorney. In truth, that’s not always the case. For some, filing bankruptcy can actually repair their credit report since it wipes out the debts that brought the credit score down in the first place and provides the chance to start over creating positive marks on the credit report. Any damage to the credit report that does occur is temporary, and the benefits far outweigh the consequences for those who are in need of the protections of bankruptcy.

If you are struggling with debt and aren’t sure you can deal with all the collection calls, emails, and letters much longer, get in touch with Kenneth C. Rannick P.C., Tennessee, and Georgia bankruptcy attorney. You are in good hands with Kenneth C. Rannick P.C.

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Are you a Tennessee resident facing financial challenges and considering bankruptcy? If so, you may have heard about a relatively new option called Subchapter 5 bankruptcy. But what exactly is Subchapter 5 and how does it differ from traditional Chapter 11 bankruptcy? More importantly, what benefits does it offer to individuals and small businesses?  In this blog post, we will explore the world of Subchapter 5 bankruptcy and shed light on its advantages for Tennessee residents. Whether you're a struggling entrepreneur or an individual burdened by overwhelming debt, understanding the potential benefits of Subchapter 5 can help you make informed decisions about your financial future. What is Subchapter 5 Bankruptcy? Subchapter 5 is a relatively recent addition to the United States Bankruptcy Code, specifically designed to provide a streamlined and cost-effective bankruptcy process for small businesses and individuals. It was created as part of the Small Business Reorganization Act (SBRA) in 2019, with the aim of increasing accessibility to Chapter 11 bankruptcy relief. The Benefits of Subchapter 5 Bankruptcy Simplified Process: One of the key advantages of Subchapter 5 is its simplified and faster bankruptcy process. Unlike traditional Chapter 11 bankruptcy, which can be complex and costly, Subchapter 5 offers a more streamlined approach that is better suited for small businesses and individuals. Retention of Ownership: Under Subchapter 5, business owners have the opportunity to retain ownership and control of their company while developing a repayment plan. This allows for greater flexibility and the ability to restructure debts without losing ownership interests. Reduced Plan Requirements: Subchapter 5 eliminates certain stringent plan requirements that are typically associated with traditional Chapter 11 bankruptcy. This simplification of the plan process makes it more accessible to small businesses and individuals. Debt Repayment Plan: Subchapter 5 allows for the development of a debt repayment plan based on the individual's or small business's disposable income. This plan spans over three to five years, making it more manageable and achievable for debtors. Creditor-Friendly Approach: Subchapter 5 encourages creditor participation and collaboration, promoting consensual resolutions and a more amicable environment. This can lead to increased cooperation, reduced litigation costs, and ultimately, a more successful restructuring process. Subchapter 5 vs. Chapter 11 Bankruptcy: Understanding the Difference While both Subchapter 5 bankruptcy and traditional Chapter 11 bankruptcy share some similarities, there are significant differences between the two. The primary distinction lies in the complexity, cost, and requirements associated with each option. Subchapter 5 offers a more simplified and accessible bankruptcy process specifically tailored to the needs of small businesses and individuals, while Chapter 11 is better suited for larger businesses with more complex financial structures. If you're a Tennessee resident grappling with financial difficulties, Subchapter 5 bankruptcy may provide a viable solution. Its streamlined process, reduced plan requirements, and debtor-friendly approach make it an attractive option for small businesses and individuals seeking relief from overwhelming debt. Before making any decisions, it's essential to consult with a qualified bankruptcy attorney who can guide you through the process and help determine the best course of action for your specific situation. Remember, bankruptcy is not a one-size-fits-all solution, and the outcome will depend on various factors. However, understanding the potential benefits of Subchapter 5 bankruptcy can empower you to make informed decisions about your financial future. At Kenneth C. Rannick, P.C., we specialize in bankruptcy law and can provide the guidance and support you need during challenging times. Contact us today to schedule a consultation and explore your options for a fresh start. Take control of your financial future with Subchapter 5 bankruptcy. Let us help you navigate the path to a brighter tomorrow.
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