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About Barbara Sims Arthur

Barbara Sims Arthur has been serving Chattanooga Bankruptcy Clients for 39 years. A native to Chattanooga, TN, she is licensed in both Tennessee and Georgia. When you choose Barbara Sims Arthur to represent you in a bankruptcy you will have an attorney with decades of experience in bankruptcy law.


Bankruptcy Questions and Answers

Attorney at Law

1Will bankruptcy damage my credit?

If are not able to pay your debts on a current basis, your credit will be adversely affected. So long as this state of affairs persists, your credit standing cannot be improved. Obviously, filing bankruptcy does not improve your credit, but it offers a way of getting control over your debts so that you may reestablish credit. Is credit counseling a better solution? If you need instruction in how better to manage your financial affairs, credit counseling can help you prevent an emergency from occurring. If the problem already exists, credit counseling is of limited usefulness. Some companies use the term credit counseling to describe a program in which creditors agree to accept easier terms than your contract provides or to settle your debt for a lump-sum payment which is less than the balance you owe. These payment plans depend on voluntary negotiation, so they cannot be made unless the creditor agreeable. The lump-sum settlements have tax consequences that may be as burdensome as the original debt was. Credit counseling plans do not mitigate the effect of your debts upon your credit standing. In bankruptcy, the Debtor has significant power to deal with his debts on his own terms whether the creditor agrees or not. If he complies with the law, the creditor cannot effectively dispute his proposal.

2Is credit counseling a better solution?

If you need instruction in how better to manage your financial affairs, credit counseling can help you prevent an emergency from occurring. If the problem already exists, credit counseling is of limited usefulness. Some companies use the term credit counseling to describe a program in which creditors agree to accept easier terms than your contract provides or to settle your debt for a lump-sum payment which is less than the balance you owe. These payment plans depend on voluntary negotiation, so they cannot be made unless the creditor agreeable. The lump-sum settlements have tax consequences that may be as burdensome as the original debt was. Credit- counseling plans do not mitigate the effect of your debts upon your credit standing.

In bankruptcy, the Debtor has significant power to deal with his debts on his own terms whether the creditor agrees or not. If he complies with the law, the creditor cannot effectively dispute his proposal.

3What is a Discharge in Bankruptcy?

A successful Bankruptcy case results in a Discharge. A Discharge in Bankruptcy is a court order relieving your of all or most of your indebtedness. Certain debts, such as alimony, child support, income tax assessed in the last three years, criminal restitution and fines, most student loans, and liability incurred as a result of impaired driving, are not discharged. Certain other debts may not be discharged if the creditor disputes the applicability of the discharge to his particular debt. A discharge eliminates your personal liability but does not remove liens against your property. If you have property which is encumbered by liens, Chapter 13 offers ways of removing them and clearing your title.

4What is a Reaffirmation Agreement?

A Reaffirmation Agreement provides for a debt to survive Bankruptcy. This may be desirable if you wish to continue making your car payments so that you may retain the car. A Reaffirmation Agreement is entirely voluntary, and the Court will examine it to determine that it serves your best interest and does not create a hardship for you or your family. You may cancel a Reaffirmation Agreement within Sixty Days of its being filed or at any time before discharge, whichever is longer. If a Reaffirmation Agreement is approved and you do not cancel it, it will have the same consequence as if you had never filed Bankruptcy.

Barbara Sims Arthur

Lawyer

(423) 697-9016