Answering your questions
At the McCormick Firm PC we strive to provide truly helpful answers and have listed those common questions with answers below for your convenience.
Why hire The McCormick Firm P.C.?
Our seasoned team will always protect your rights while using our large pool of resources and experience to help save your assets. Often mortgage companies and banks will try to violate your rights in an effort to take all that they can from you, which is why you need an aggressive bankruptcy law firm that has years of experience in dealing with the complexities of the debtor and creditor law.
You will have the peace of mind knowing that we are on your side throughout the debt relief or bankruptcy process. The McCormick Law Firm always takes the time to explain to new clients how bankruptcy works, and will always advise you on the best course of action to take based on your situation. We will dispel any myths that you may have about filing for Chapter 7 or Chapter 13 bankruptcy, and present you with facts and information that will help you decide on the best course of action to take.
What happens to my credit?
Bankruptcy can damage your credit and subsequently your credit score. We all know that credit scores play a large part in our lives and have for some time, as they help determine how much we pay for our cars, houses and more. However, if your score has already been damaged, bankruptcy can be a great first step to rebuilding your credit.
How will I pay my bills going forward?
The key to paying your bills in addition to getting the most out of your bankruptcy case is to form a stringent budget that you can follow reasonably. If you have filed for Chapter 13 bankruptcy, you need to have a budget to make sure that you are taking care of all of your required payments. If you file for Chapter 7 you will have your debts discharged, but only those debts that you had before the petition for Chapter 7 was filed. You will need a budget if you file for Chapter 7 to make sure that you won’t have to file again in the future. You should be able to consult with your Cumming Georgia bankruptcy attorney on this matter.
Will I lose my job if I file for bankruptcy?
Filing for bankruptcy is information that the public can view. However, this information is not published in any newspapers or distributed at any stores. The only people that will know that you filed for bankruptcy is the trustee in your case, your creditors, and the people that you choose to tell. If your employer finds out about your case, it should not adversely affect your position or job. This may not be true if you work within the financial industry.
What is a Bankruptcy Discharge and how does it work?
One of the reasons people file bankruptcy is to get a “discharge.” A discharge is a court order which states that you do not have to pay most of your debts. Some debts cannot be discharged.
You cannot discharge debts for:
- most taxes,
- child support,
- most student loans,
- court fines and criminal restitution, or
- personal injury caused by driving drunk or under the influence of drugs,
- debts that arose after the date you filed, and
- if the judge finds that you received money or property by fraud.
It is important to list all your property and debts in your bankruptcy schedules. If you do not list a debt, for example, it is possible the debt will not be discharged. The judge can also deny your discharge if you do something dishonest in connection with your bankruptcy case, such as destroy or hide property, falsify records, or lie, or if you disobey a court order.
NOTE: You can only receive a chapter 7 discharge once every eight years and other rules may apply if you previously received a discharge in a chapter 13 case.
No one can make you pay a debt that has been discharged, but you can voluntarily pay any debt you wish to pay. You do not have to sign a reaffirmation agreement (see below) or any other kind of document to do this.
Some creditors hold a secured claim, for example, the bank that holds the mortgage on your house or the loan company that has a lien on your car. You do not have to pay a secured claim if the debt is discharged, but the creditor can still take the property.
What is a Reaffirmation Agreement?
Even if a debt can be discharged, you may have special reasons why you want to promise to pay it. For example, you may want to work out a plan with the bank to keep your car. To promise to pay that debt, you must sign and file a reaffirmation agreement with the court. Reaffirmation agreements are under special rules and are voluntary. They are not required by bankruptcy law or by any other law.
- must be voluntary,
- must not place too heavy a burden on you or your family,
- must be in your best interest, and
- can be canceled anytime before the court issues your discharge or within 60 days after the agreement is filed with the court, whichever gives you the most time.
If you are an individual and you are not represented by an attorney, the court must hold a hearing to decide whether to approve the reaffirmation agreement. The agreement will not be legally binding until the court approves it.
Be Advised: If you reaffirm a debt and then fail to pay it, you owe the debt the same as though there was no bankruptcy. The debt will not be discharged and the creditor can take action to recover any property on which it has a lien or mortgage. The creditor can also take legal action to recover a judgment against you.
Passionate, Accessible, and Responsive
We are a bilingual firm passionate about helping our clients, and look forward to helping you put your debt problems behind you, whether they stem from a failed business, personal loan situation or from credit card debt.
The McCormick Firm P.C.