Atlanta Bankruptcy Attorney Blog

Layoffs and income reductions might mean more Atanta taxpayers are getting money back this tax season, but not all of us are so lucky.

So what can you do if your already tight budget now includes a tax payment to Uncle Sam? Get help. Whatever you do, don't avoid filing. Not only do IRS penalties add up more quickly than most other debts, but they can lead to garnished wages or even jail.

Fortunately, the government can be a lot more understanding than most creditors - if you follow their rules, that is. That means being open with the IRS if your financial situation is making it tough to impossible to pay off tax debt. File your taxes, even if you can't afford to pay them, and you might have a shot at the following alternatives.

Continue reading "Bankruptcy Is One Way for Chicago Taxpayers to Lower IRS Debt" »

What's more important than filling out the 2010 U.S. Census? Making sure that the form you're filling out is actually the census - and not an attempt to steal your identity, according to Atlanta bankruptcy attorneys.

Now, this isn't meant to discourage you from participating in the census. Remember, the more people that get counted in your community, the more federal money your community can receive. Besides, the sooner you get your official census form turned in, the better.

Procrastinating ups the odds that a census worker will follow up with you by calling or knocking on your door. Problem is, a phony worker could do the same, increasing your risk of identity theft. Here's how to tell the difference.

Continue reading "Atlanta Residents Can Avoid 2010 Census Scams by Using Caution " »

Relaxation and spending money do not go hand in hand. So then why do so many people believe they need to take an exotic (read: expensive) vacation come springtime?

Sure, after a long winter, we could all use a sunny getaway. But with many folks in Atlanta dealing with debt and even thinking about bankruptcy, this might not be the ideal time to go on a spending spree.

Now that doesn't mean you can't enjoy some downtime - or even a vacation - this Spring Break. It just means that you're going to need a strategy if you don't want to break the bank.

Don't think of it as being frugal. Think of it as getting more bang for your buck. Whatever you save this spring can be applied towards several smaller vacations later this year. Or you can use it to help pay for gas, groceries or the mortgage - or even better, to pay down debt. That way, you'll free up more fun money in the future.

Continue reading "Atlanta Vacationers Can Travel on the Cheap This Spring Break with the Right Spending Plan and Destination" »

Not worrying about your mortgage payment might sound like a dream come true - and with the low mortgage rates we're seeing today, now might seem like the time to pay down that home loan.

But, for most Chicago residents, paying off the mortgage early might come at a price they can't afford, particularly if they're dealing with large credit card debts and little savings.

As it turns out, a low interest rate is actually a good time to hold on to your home loan.

Continue reading "Atlanta Residents Debate Whether to Pay Down Mortgage or Choose Bankruptcy for the Biggest Savings" »

You know how when you hear something a million times, you start to tune it out? I think we've started to do just that when it comes to the b-word.

I'm talking about a budget. The advice is true - a budget really is the most effective way to start saving so that you can pay down credit card debt, loans or other obligations and eventually use your money for the things you really want: a house, a nice vacation, some spending money, college for your kid and a comfortable retirement. But the problem is, Atlanta consumers have heard so much about the benefits of budgeting, they've become sort of meaningless to us.

Sure, setting up a budget takes a bit of work, while ignoring the need to budget doesn't. But you'll pay a price - i.e. more money wasted each month - for taking the easy way out. Whereas with just a little effort, a budget can help you reap long-lasting rewards.

Continue reading "Setting Up a Budget Can Help Atlanta Residents Lower Debt and Start Saving" »

Most folks don't budget bank fees into their finances - but if we're not more careful, maybe we should.

Atlanta banks - as well as banking institutions all over the country - are taking increasingly larger chunks of our paychecks. Between annual account fees, monthly "maintenance" fees - even fees for writing too many checks - some Americans are paying hundreds of dollars annually. The worst part is, many of us don't even realize it until we happen to glimpse our banking statement, according to Atlanta bankruptcy attorneys.

Shelling out $20 a month just for being a banking customer doesn't make sense - especially not when there are options that can eliminate those fees. That's twenty bucks that could be spent on treating yourself to your favorite mocha frappuccino - four times. Or more practically, on groceries or gas. Instead, you're giving that money away and getting nothing in return. If that sounds like a bad deal, here are some ways to fix it.

Continue reading "Atlanta Bank Account Fees Leave Some Customers in Debt" »

Take a close look at your next credit card statement - what you see might shock you. And that might not be a bad thing.

As part of the recently enacted Credit CARD Act of 2009, card holders in Atlanta and beyond are going to see a lot more information on their monthly credit card bills. Creditors are now required to include forecasts for how much you will shell out during the life of your debt balance - and how long it will take for you to pay off said debt while making minimum payments. For many of us, that could mean thousands of dollars over several decades.

By keeping us in the dark, credit card companies have kept us from looking into the future. Writing a check for our credit bill every month has become so routine, we don't even question how much we will eventually pay out - just how much we are paying in the moment. But by forcing us to confront the real size of our debt, legislators hope we will also confront our credit habits. This might be just the wake-up call we need to start paying down debt - or at least looking into debt relief options like bankruptcy.

Continue reading "New Rules for Credit Card Statements Could Motivate Chicago Consumers to Pay Down Debt " »

Experts say computer users should have a different password for every online account. If that's the case, many of us have a long way to go, say Atlanta bankruptcy attorneys.

A recent study found the most common password is still the highly guessable "123456." In close second is "qwerty." That's the equivalent of leaving a fake lock on your front door. You think it will deter potential thieves, but the minute someone tries to break in you're in trouble. Maybe you think the online security questions will provide backup protection, but consider this: answers to the most common questions (What high school did you graduate from?) are often available on sites like Facebook.

Sure, it's a little extra work to develop a strong password (or several passwords). But believe me, it's a lot less work - and money - than putting your finances back together after someone hacks into your account, steals your personal information and ruins your credit or drains your bank account. Fortunately, there are some ways to make online security less of a pain.

Continue reading "Atlanta Computer Users Can Protect Their Online Identity With Better Passwords" »

Maybe 2010 will someday be remembered as the year of credit card reform.

Laws have already been passed to limit unfair credit card fees, interest rate increases and billing cycles. And now the Federal Reserve is asking for another limit. If passed, credit card issuers won't be able to you charge a fee higher than the amount of your violation. For example, if you go $10 over your credit limit, you'll only pay $10 or less - not the $39 fee or some other ridiculous number you pay today. Additionally, cardholders will be protected from inactivity fees and from being charged multiple fees for the same indiscretion.

Sounds like a good deal, right? But here's the thing - if you want to take advantage of this new law, you're going to have rethink the way you use credit. And filing for bankruptcy might be the way to do it.

Continue reading "Atlanta Consumers Could See Lower Credit Card Fees With New Legislation" »

Spring brings April showers and then May flowers, but it also brings something a lot less pleasant: pain at the pump.

When the temperatures slowly start to go up, so do gas prices. So far this month, the average cost of gas is up 9 cents and is edging ever closer to $3 a gallon - that's 81 cents more than last year, according to AAA.

But there's a silver lining - and it's not just warmer weather. As it turns out, the same economy that is causing Atlanta residents and others to struggle financially is also lowering demand for gas, say Atlanta bankruptcy attorneys.

With unemployment soaring - the Georgia unemployment rate is 10.3 percent as of January - less people are driving a car to work, meaning less people are buying oil. Economists say gas prices might level off at not much over $3 a gallon this summer. But even if they don't, there's more good news. You can minimize the effects of higher gas prices on your own.

Continue reading "Atlanta Drivers Search for Cheap Gas Prices as Oil Costs Increase" »

At first glance, it looks like a good deal: Buy a new house and Uncle Sam gives you $6,500 back. But there's a pretty big catch, according to Atlanta bankruptcy attorneys.

When the federal government agreed to extend a tax credit originally intended for new homebuyers to existing homebuyers, they hoped it would encourage folks to upgrade to bigger houses - and that, in turn, would stimulate the real estate market.

Yet the market has stayed flat. Why? Because although we'd all love to have bigger, better houses, most of us are struggling to hold on to the ones we already have. Forget a new house - what we need is Chapter 13 bankruptcy.

Continue reading "Homebuyer Tax Credit Might Not Be Enough for Chicago Homeowners to Stop Foreclosure" »

Even though a weak job market is threatening to stall economic recovery, Americans increased their spending in January, Atlanta bankruptcy attorneys say.

With unemployment still hovering just under 10 percent, incomes remained almost flat in January - rising by around 0.1 percent, significantly lower than what economists expected. And for those lucky enough to retain our jobs, cost-of-living raises are still far and few between - not to mention the fact that some of us have seen reduced hours, furlough days or other paycheck-lowering actions. Yet we spent, on average, 0.5 percent more last month, according to The Commerce Department.

The good news is that we're feeling optimistic. The bad news is that we're threatening to derail our progress. See, the Great Recession has been good for at least one thing. It's increased our savings rate from a negative number for most of the last decade to more than 4.3 percent last year. Now we're starting to see that rate drop again - last month, for instance, we only saved 3.3 percent.

If we want our newfound responsible behavior to stick around, we're going to have to start slowing our spending to match our income. Fortunately, there's a formula to make saving a little more manageable.

Continue reading "Atlanta Bankruptcy Attorneys Are Saving Less But Spending More" »