Types of Debt That Are Non-Dischargeable

Debt is part of everyday life. Many people however find themselves in situations where the debt is so overwhelming that they have to file for bankruptcy. According to the constitution, you can always get a fresh start through reorganization as provided in Chapter 13 or liquidation as provided by Chapter 7. In both of these cases, the bankruptcy court has the power to discharge certain debts to ensure that the creditor doesn’t take measures against the debtor such as seizing collateral and so forth. However, there are cases where some debts cannot be discharged.

Debts That Aren’t Discharged In Bankruptcy

While the objective of both Chapters 7 and 13 is to provide people with a fresh start unencumbered by their past debts, there are a few debts that cannot be discharged. These will include:

  • Child support and alimony. This will also include the attorney’s fees for the same.
  • Taxes that haven’t been paid yet such as tax liens. In some cases, however, when the taxes date back several years, some of the federal, state, and local taxes can be discharged.
  • Debts that were left off the bankruptcy petition.
  • Penalties and fines that are owed to government agencies
  • Debts that arose from willful and malicious injuries to properties or people.
  • Cooperative or condo housing fee debts.
  • Criminal restitution, penalties and fines imposed by the courts
  • Student loans. Although notoriously difficult to discharge in a bankruptcy court, student loans can be discharged if there is evidence of undue hardship on the individual or their dependants.

Can A Discharge Be Denied?

Although these discharges come as a great relief to the debtor, there are cases whereby the debts cannot be discharged. One such reason is when a debtor doesn’t comply with the rules and procedures provided in both Chapters 7 and 13. A judge can also deny a discharge if the individual or company files for bankruptcy too often between a certain period of time. In such a case, the court will view it as a habitual thing and deny the petition. Additionally, your creditors have a say in discharging certain debts. They may oppose to the discharge, but ultimately the court has the final say.

Want to learn more? Call us and let us help you understand bankruptcy laws and the types of debt you have.

How PPP Relief Can Affect Bankruptcy

Business owners here in Georgia have had to face most of the same challenges and difficulties that their counterparts in other states have had to deal with during the coronavirus pandemic. Two-plus months of nonessential business and office closings have left a devastating toll on many small and medium-sized business owners.

As a result, many of these companies filed for and received Payment Protection Plan assistance in the form of loans and grants. Unfortunately for many businesses this simply was not enough. With bankruptcy left as their only viable option many of them are now wondering how those PPP payments will be factored in? This is where a team of legal professionals such as the Williams Litigation Group can help.

Understanding the Difference Between Loans and Grants

The first thing to understand is the fact that loans and grants are both part of the PPP program and that you may have received one or the other, or both. This is important because the grants are not required to be paid back, so long as the stipulations and requirements were met. Most of the grant paybacks are waived under the conditions that the funds be used for certain purposes such as covering employee payroll, rent and other utilities, as well as equipment or material costs.

You May Qualify for Dismissal of Loan Debt

Under many circumstances, PPP loans are dismissible in your bankruptcy filing, as long as certain things within your business and paperwork are handled properly and with the courts full knowledge before the process begins. The most important thing in this situation, as with any other information regarding your business and its finances is to make sure that you are completely upfront and transparent with all of your financial records and notes.

Making Sure You Cover All Legal Bases

The knowledgeable and experienced team at the Williams Litigation Group in Brunswick has years of experience helping its clients deal with the intricacies of bankruptcies, as well as navigating through the murky and confusing details of bankruptcy law. Don’t let confusion or misunderstanding end up complicating or upending your case. Give the experts a call or stop by and see them in person as soon as possible.

Can Covid-19 Actually Help Your Bankruptcy Case?

As the country continues to reopen and tries to recover and move forward while still dealing with the effects of the coronavirus and the havoc it has wreaked on people’s personal and financial lives, folks in here in Georgia aren’t shielded from any of life’s realities which still exist. And for people who are contemplating or going through a bankruptcy that truth is self-evident.

But the friendly and helpful experts at the Williams Litigation Group have been specializing in these types of cases for years. And even though Covid-19 may have thrown a wrench in the way the proceedings work, the law is still the same and these folks know the law. Here are a few things that have changed in light of the new court processes:

A Slow-Moving System Grinding to a Near Halt

As hard as it may be to believe, the onset of this pandemic may help with certain aspects of your bankruptcy case, particularly when it comes to time-sensitive issues or other aspects which normally function under very strict deadlines. The fact that allowances must be made where all of the necessary parties can appear at the same time through video conferencing or phone calls creates a little bit of leeway in scheduling and filing timelines.

Easier Court Appearances and Paperwork

As a result, everything from the client’s appearance in court to the various types of documentation and legal paperwork which must be filed has become somewhat more convenient. Instead of battling traffic and fighting through crowds you can now sit in the comfort of your own home or office and deal with all necessary appointments pertaining to your case.

Experienced and Professional Legal Help Is More Crucial Than Ever

As if bankruptcies weren’t difficult enough before, now with the global pandemic, creating new protocol and procedures for how and where these types of cases take place, it is now even more important to make sure that you are working with attorneys who are comfortable dealing with these issues in any setting.

The legal professionals at the Williams Litigation Group in Brunswick, Georgia have years of experience with bankruptcy law. This means they can practice it on your behalf in person, over the phone, as well as online and in video conferences.

What You Need to Know Before Filing for Chapter 7 Bankruptcy

Folks are grappling with financial hardship because of the COVID-19 pandemic. With our government restricting movement (with good intentions) the economy has taken a major hit; the income-streams of a lot of people have been affected, and their savings are running dry. This pandemic has driven many folks into debt, causing them to entertain the idea of declaring bankruptcy.

Filing bankruptcy is the legal route by which people who are burdened by debts they cannot repay seek fractional or full reprieve from their creditors. Each year, countless businesses and people declare bankruptcy. Considering the psychological distresscaused by unpaid debts, getting declared bankrupt is not always as bad as it’s made out to be.

But before moving to court, ensure that you understand the following.

Chapter 7 Bankruptcy

It’s the most common type of bankruptcy because it enables you to get rid of your unsecured debts by just giving up a part of your assets. Most debtors prefer it over Chapter 11 or Chapter 13. It can be executed quickly, and the debtor is not asked to repay the loan over an extended period. The debtor also gets to keep most of their property, especially if they had no luxuries to their name. The entire process might last three to six months.

Before you initiate the process, you want to be sure that you are eligible. Start by analyzing your debts. There are certain types of debts you cannot escape from e.g. child support, tax bills, and student loans. You must also determine what properties you are allowed to retain.

The debtor initiates the process by filing the bankruptcy forms, where the court extracts details of their property, debts, income, expenses, and business transactions. The debtor pays the filing fee, or requests a waiver, and submits the documents to a court-approved trustee.

The debtor attends a meeting between the trustee and the creditor, where the trustee challenges the information in the bankruptcy form, and also listens to the creditor. If your petition is successful, the court gives an order that you are released from qualifying debts.

What Happens to the Debtor’s Property?

Their property may be divided into two categories: exempt and non-exempt property. With exempt property, creditors may not claim it. The exemptions are designed to protect the debtor from losing the essential property. Non-exempt properties may be sold to repay the debt.

Discharge

Creditors and the trustee have two months to object to the discharge after the meeting. This is done by starting a lawsuit in the court. If the creditor doesn’t start a lawsuit within two months, then the court will free the debtor from their unsecured debt.

The debtor is required to take an online course before the discharge. They have to pay a certain amount for the course, but if they are of low means, they can apply for a fee reduction or waiver. Once the court issues a discharge order, the creditor has no right to pursue them again.

Call us in Brunswick toll free 866-214-7036 or complete the contact form on our website. Serving Brunswick, GA and Glynn, Camden, Brantley, Wayne, Ware and McIntosh Counties.

Has Coronavirus Affected Your Business? Here are Five Ways to Protect Your Company from Bankruptcy.

The COVID-19 pandemic has hurt the global economy. With people locked away in their homes, and businesses shut down, the economic ramifications cannot be wished away. Considering that most small businesses rely on their daily revenues to pay off their debts, the slow economic activity caused by Coronavirus is likely to push them into payment defaults. If you are a small business owner and your creditors are pursuing you, you probably feel like you are at the gate of bankruptcy. It doesn’t have to be so. Here are some of the ways to protect your business from bankruptcy.

1. Adopt an Online Business Model

Our technological evolution has opened the way for virtual economies. And during this pandemic, with the brick and mortar businesses closed down, buyers are shifting to online markets. This is precisely why Amazon is overwhelmed with transactions right now. You can hire a web developer to create an online home for your business, and attract your target audience via advertisement and content marketing.

2. Collect What is Owed to You

Just as your creditors give you predatory looks, you should also go after those who owe you money. It’s time to go through your accounts receivable and demand payment from these parties. This is why businesses must invest in solid, record-keeping platforms.

3. Utilize Government Programs

You can take advantage of the Paycheck Protection Program to keep your business afloat. The main requirement is that you don’t have more than 500 employees. More than 1.6 million PPP loans have been approved. Taking advantage of this government initiative buys you time to gather resources.

4. Talk to Your Creditors

It might not work with every creditor, but it’s a commendable move nonetheless. It mainly involves persuading your creditor to reduce payments or extend the repayment window. You have to have strong persuasive skills to do it well. Considering that we are in the middle of a pandemic, creditors are likely to be agreeable.

5. Reduce expenses

When a business is in dire straits, there’s no option but to tighten the belt. Go through your expense account and get rid of the luxuries. And if your business is facing imminent collapse, you might have to cut your employees’ salary or even lay some of them off.

A business can also reduce costs by switching business partners. For instance, if you are stuck with suppliers who have high quotes, just forego them and seek out suppliers with lower quotes, and better payment terms.

The more information at our disposal, the more power in our hands; in the age of the internet, we have a solid way of digging up information to help us make vital decisions. Great decisions can easily translate into low expenses.

Many external factors influence the performance of an economy. A pandemic, such as the one we are witnessing now, can severely hurt the economy. And this forces business owners to think outside the box to avoid bankruptcy.

Call us in Brunswick toll free 866-214-7036 or complete the contact form on our website. Serving Brunswick, GA and Glynn, Camden, Brantley, Wayne, Ware and McIntosh Counties.

Coronavirus Places Stress on Household Finances

Have You Recently Been Laid Off or Having Trouble Paying Your Bills Due to the Coronavirus?

Bankruptcy is never a situation in which anyone plans to find themselves in. In many instances there is a feeling of failure or guilt associated with having to actually go through the legal processes of declaring yourself financially overwhelmed and unable to fulfill certain monetary obligations.

The experienced bankruptcy lawyers at the Williams Litigation Group know that this is often times the result of unforeseen circumstances, sick or ailing loved ones, and other unplanned for circumstances. But in today’s world we now have an unprecedented new cause…

Dealing With Finances in an Uncertain Time

The sudden emergence and spread of the coronavirus is unlike anything we have ever experienced in our lifetimes here in the United States, as well as in many other parts of the world.

What was just recently one of the greatest economies in history with record low employment levels and a booming stock market has suddenly found itself in the same position as many citizens of the country – locked down and shut off.

The Inflexibility of Many Lenders and Financiers

This health crisis has lent itself to an equally devastating economic crisis which could ultimately end up claiming more victims than the actual virus. Many people are either furloughed, laid off, or even fired due to the effects this contagion has had on businesses all throughout the country. And without money coming in, a lot of folks are having to choose between groceries and bills.

Unfortunately, even a global pandemic isn’t enough to make some lending institutions ease the payment obligations that many clients find themselves in. Numerous mortgage companies, automobile finance groups, credit cards, and various other loan providers are still demanding their money.

If the impact of the coronavirus isn’t alleviated soon, this will most likely lead to a record number of bankruptcy filings in the nation.

How To Safeguard Yourself and Protect Your Interests

Although you may feel like bankruptcy is the only way out of the mess that you and many others now find yourselves in (through no fault of your own), the best thing to do before making any final decisions is to consult with professionals who deal in this area of the law every day, such as the highly respected legal representatives at Williams Litigation Group.

They will listen to the details of your individual situation and help you develop a strategy moving forward. Schedule a consultation.

Contact Our Attorneys

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1709 Reynolds Street Brunswick, GA 31520

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P.O. Box 279 Brunswick, Georgia 31521

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