In board games like Monopoly, when players file bankruptcy, the game is over. Fortunately, the real world is different, at least in this area. Far from ending the game, bankruptcy is a new beginning. Bankruptcy gives the “honest yet unfortunate debtor” a “fresh start” in life.

With very few exceptions, nearly all distressed debtors are honest yet unfortunate. And, they all need fresh financial starts away from crippling debt loads.

An Athens bankruptcy lawyer can give these distressed debtors several legal options, as outlined below. The best choice for you and your family largely depends on the type of debt and the other circumstances you face. Regardless of the path, the end is always the same. That end is the aforementioned fresh start.

Why Do People File Bankruptcy?

In a nutshell, people file bankruptcy because they owe more than they can pay. Since the average consumer debt load is over $135,000, a lot of people are in this boat. Excessive debt has a number of causes, almost all of which are mostly or entirely beyond the debtor’s control. Some examples include:

• Job Loss: Most families in Georgia live from hand to mouth. Any significant income loss, even if it’s only for a few weeks or months, could be financially devastating. Once a family falls behind on bill payments, it is almost impossible to catch up.
• Business Downturn: On a related note, millions of Americans are self-employed, at least on the side. Temporary income disruptions are almost inevitable. If the income loss coincides with another event, such as a death in the family, the financial effects are even worse.
• Medical Bills: Two-thirds of American bankruptcies are directly or indirectly related to medical conditions. Particularly in chronic illness situations, medical bills are often crippling, even if the debtor has insurance. Indirectly, many people miss too much work because of medical conditions.
• Divorce: Marriage dissolution legal fees are just the beginning. It is twice as expensive to maintain two separate households. Additionally, some people see their incomes slashed. Others must pay thousands of dollars toward alimony and other family support obligations.
• Overspending: Believe it or not, overspending is often involuntary. When one of the aforementioned financial storms hits, most people use credit cards to pay living expenses. This model is not sustainable for more than a few months, at the most.

None of these causes involves fraud or dishonesty. So, an Athens bankruptcy lawyer can generally assist all these distressed debtors. In many cases, the benefits of bankruptcy are simply too good to pass up.

Bankruptcy Basics from an Athens Bankruptcy Lawyer

If your family struggles with unsecured debts, like credit cards and medical bills, Chapter 7 offers a way out. This type of bankruptcy eliminates most of these unsecured debts in only a few months. If secured debts, like a past-due home mortgage, are a problem, Chapter 13 is usually a good option. This type of bankruptcy gives debtors up to five years to erase these delinquencies.

As long as the case is pending, the Automatic Stay is usually in force. Section 362 of the Bankruptcy Code prohibits all forms of creditor adverse action, such as harassing phone calls, repossession, and wage garnishment. 

Creditors can only bypass the stay if the bankruptcy judge grants special permission, and an Athens bankruptcy lawyer knows how to effectively block these requests.

Life After Bankruptcy

The case does not end when the judge signs an order. A good Athens bankruptcy lawyer does more than give people fresh start. An attorney helps people make the most of this opportunity.

To rebuild their credit score, most people borrow more money after they emerge from bankruptcy. At these times, there is usually no shortage of credit card offers. Moneylenders know that after a judge signs a discharge order, debtors cannot file again for several years. 

Fundamentally, your credit score does not measure your ability to pay cash for everything. Instead, it measures your ability to use credit responsibly.

An Athens bankruptcy lawyer can point you in the right direction. We have professional relationships with lenders who work with former bankruptcy debtors. These individuals will pay higher interest rates, and there might be other strings attached as well. But generally, everyone who seeks finds. 

Responsible credit use, along with a few other tips, helps people put bankruptcy behind them. In many cases, after a few years pass, most people do not remember that they filed bankruptcy in the first place.

Call a Georgia Bankruptcy Attorney Today to File Bankruptcy

Bankruptcy could be the answer to your financial problems. Our skilled Athens bankruptcy lawyers understand that paying off huge debts can be overwhelming and even take over your life entirely. Numerous people file for bankruptcy daily as it is a lawful way to deal with and get out of debt. Our Georgia bankruptcy lawyers will work diligently to help you get a fresh start in life. For a free consultation with an experienced Athens bankruptcy lawyer, contact Morgan & Morgan Attorneys at Law P.C. on (706) 843-2905. We routinely handle matters in Clarke County and nearby jurisdictions.

Christopher Ross Morgan

Christopher Ross Morgan

Christopher Ross Morgan focuses on bankruptcy cases, specifically Chapter 7 and Chapter 13 cases. Christopher also takes on Disability and Workers’ Compensation cases. As one of the most accomplished Chapter 7 and Chapter 13 attorneys in Athens, Georgia, he has fought cases through jury trials and argued cases in front of the U.S. District Court, Northern and Middle District of Georgia.