What is the difference between a Chapter 7 and Chapter 13 Bankruptcy?

Have you received letters from Attorneys saying a lawsuit or garnishment has been filed against you?  Well, you are not alone. Every week, lawsuits are filed by creditors who are seeking to recover money from debtors.  If you have received letter from attorneys, it probably means that you are either being sued or have already had a judgment entered against you and a garnishment has been filed against you. If a garnishment is filed against you, the creditor can garnish 25% of your wages.

We have moved to historic Buford, GA. Keeping the old phone number of 404-378-0600 and will have additional numbers as soon as Windstream gets thier act together. Feel free to drop by and see the new office: 4295 Buford Drive, Suite 1B, Buford, Ga 30518

If you have a second or third mortgage on your home, you may be eligible to strip the 2nd or 3rd lien off your home if your home is worth less that your current 1st mortgage. Lien Stripping is not a new idea in Bankruptcy but due to the current housing crisis, the practice is gaining ground. Lien stripping was not a common practice in the past mainly because most people has at least some equity in their home. Nowadays, with home prices falling, lien stripping may be an option for many people who are upside down with their mortgages.

A Chapter 13 is a Debt Repayment Plan. In a nutshell, a debtor’s debts are consolidated into a Chapter 13 plan and a payment plan is developed and must be approved by the Bankruptcy Court. The most common examples of debts that would be included in a Bankruptcy plan are credit cards, medical bills, car payments and mortgage arrearage. For Mortgages, this means the amount you are behind on gets put into the bankruptcy plan to allow you to keep your house. Beginning the month after your case is filed, you must make your current mortgage payments.

Foreclosure Tuesday:

If your house is scheduled for a foreclosure and you are working on a loan modification, keep in mind that the loan modification process does not necessarily stop the foreclosure process. Several clients have come to our Law Firm and said they were working on a loan modification and they thought that meant the foreclosure would automatically stop. This is NOT the case! If you are facing foreclosure, you can use the power of the Federal Bankruptcy Court to stop the foreclosure through filing a Chapter 13 Bankruptcy case.