Atlanta Bankruptcy Attorney Blog

The Atlanta Journal-Constitution recently reported that foreclosure notices in the Atlanta area rose 22 percent in May from April.

If you are upside down on your mortgage like many Georgians, consult with an Atlanta foreclosure lawyer so you can fight for your home. In the near future as many as 7 million American homes will fall into foreclosure, so you're not alone. In Georgia, there is both judicial and power of sale foreclosure, meaning the lender can schedule the sale of your house without even telling you after you're in default. Don't let this happen to you if you're going to fall behind your payments and slip into foreclosure in Georgia.

According to the news article, 9,350 notices were filed in the 13-county Atlanta metro area in May. But it's possible that lenders are still lagging in how many foreclosures they file with the courts because of well-documented problems with law firms filing "robo-signed" false documents or banks being unable to come up with the proper paperwork for a person's home loan.

Many experts are expecting a large wave of foreclosure filings once banks figure out which paperwork is correct and which has been falsely filed against homeowners. In Gwinnett County, nearly 2,000 foreclosures were filed in May, followed by Fulton (1,804), DeKalb (1,472), Cobb (1,152) and Clayton (791).

Statewide, there were nearly 8,500 foreclosures filed in April, the Rome News-Tribune reported. That was down 35 percent from March.

This is all depressing news. But don't let the banks take away your home without a fight. There are ways to stop the process and the first step is contacting an Atlanta foreclosure attorney who can help you.

First, here are some tips of what not to do if you're facing foreclosure. You shouldn't trust a third-party mortgage modification company, foreclosure rescue specialist or debt settlement company. These simply won't work.

What you should do if you're facing foreclosure is attempt to modify your loan or meet with DebtStoppers to see if there are other avenues to save you home. It's possible that Chapter 13 bankruptcy in Georgia could be best for you. You can set up an affordable payment plan to satisfy debt without losing your home.

Continue reading "Consult an Atlanta Bankruptcy Attorney to Stop Foreclosure" »

The Atlanta Post is reporting that professional athletes are not immune to the pressures of debt and often seek bankruptcy protection in Georgia and elsewhere following their retirement from professional sports.

If those making millions are not immune, it's little wonder struggling hardworking families are filing in record numbers. In a previous post on our Atlanta Bankruptcy Attorney blog we reported that 19,588 Georgia consumers filed for bankruptcy protection in the 4th quarter of 2010.

A CNBC report found that in the NBA over 60 percent of players went broke within 5 years after retiring; a Sports Illustrated article in 2009 reported that within 2 years after leaving the game 78 percent of NFL player will be financially distressed or bankrupt.

Here is a look at a few former athletes' financial situations:

-A former heavyweight boxing champion earned $400 million, when he filed for bankruptcy in 2003 he was $27 million in debt.

-A former MLB player filed for bankruptcy when he had $700,000 to his name, but was in debt for $1.1 million.

-A former NBA player lost his $60 million in earnings paying for 7 children, 3 ex-wives + 2 former girlfriends with whom he had fathered children. Another earned a total of $87 million during his playing days. Last year, he filed for bankruptcy with a debt of $4 million dollars.

-A former NFL player filed for bankruptcy during his jail term for dog fighting. He had previous earnings close to $200 million.

Recently The Atlanta Journal-Constitution reported on an ex-MLB player who was charged with committing a bankruptcy crime. He filed for bankruptcy claiming to be $31 million dollars in debt with only $50,000 in assets. Federal prosecutors allege after filing, he destroyed, hid or sold over $400,000 worth of items taken from his $18.5 million mansion.

A bankruptcy attorney will advise you to never lie regarding your list of assets on your bankruptcy petition. You will be in a lot of trouble if your trustee finds out items have been sold or omitted. It is actually a crime to intentionally not disclose your assets.

Filing for bankruptcy does not wipe out all of your financial duties. It is meant to free you from most or at least some of your debts, leaving you more money to pay the others. Some financial obligations could even be restructured to making them more manageable. In general, debts like taxes and student loans must still be repaid, while unsecured debt from medical bills and credit cards can be completely forgiven in some cases.

Continue reading "The Pros Struggle with Bankruptcy in Atlanta, just like Other Consumers" »

It's no secret that many Americans are struggling with an insurmountable amount of debt caused by credit card use, unpaid mortgage or unpaid medical bills. As your credit score has, oftentimes, already been ruined by these balances, you're best bet may be to file for Chapter 7 bankruptcy in Atlanta or you hometown. Currently, medical expenses are the leading cause of bankruptcy filings. With the outrageous cost of procedures, medications, treatments and other medical related filings, more and more U.S. citizens fall deeper and deeper into debt. While many citizens don't expect to be hit with the suffocating bills, as they start off right the right intentions of paying their bills and not expecting to have to file for bankruptcy in Chicago or elsewhere in the United States.

Consulting a Chapter 7 bankruptcy lawyer in Atlanta can help you to clear your debt and start over again to rebuild you credit rating. When there seems like no where to turn, your best best is to turn to an experienced attorney as we can help you to sort through the legalities of a bankruptcy and get you on your way to financial freedom once again.

According to Fox Business, there are two other routes that those in a financial crisis can attempt before actually filing for bankruptcy:

-Debt settlement. Collectors know that the longer collection attempts drag on for, the less likely it is that they're going to get their money. Speak with your lenders directly and explain to them that you are considering filing for bankruptcy. If you inform them that you are willing to come to an agreement instead, offering them 25 to 30 percent of the balance, they may be willing to settle the debt. When making an offer to these companies, always expect a counteroffer. When an agreement is met, be sure to get it in writing before making any payments.

-Debt Management. Nonprofit credit counseling agencies can help you to negotiate payments that you're able to afford. The idea behind debt management is to come up with payment plans that can allow debtors to work on fixed schedules and payments and that creditors will accept. Interest rate reductions and principal forgiveness may allow for another way to create a reasonable agreement. Talk to your lenders personally to try and strike a deal. Such programs from creditors can last up to a year, whereas some plans through credit agencies can last 48 to 60 months.

Still think you're too far in debt? Don't worry. An experienced attorney can help you through with a Chapter 7 bankruptcy filing. Sometimes this is the only way to help a consumer regain their financial independence. A chapter 7 bankruptcy can help you to eliminate debts from medical bills, credit cards, utility bills, IRS payments, payday loans, even personal loans and wage garnishments. Chapter 7 deals with liquidation. This is a common form of bankruptcy in the United States and is often the quickest way to get out of you unsecured debts and start rebuilding your credit score with a clean slate. In come cases, debts can be discharged in a few months and you can be back on the road to financial stability.

Chapter 7 bankruptcy may be right for you if you have little or no income, you have a lot of unsecured debt, you currently live paycheck to paycheck or you have very few large assets. It is important for you to contact an experienced bankruptcy attorney if you're thinking about filing for Chapter 7 bankruptcy as they can help you to settle the disputes and move past the unfortunate times and on to a brighter future.

Continue reading "Chapter 7 Bankruptcy in Atlanta the Best Option for Many seeking Fresh Start" »

The Atlanta Journal-Constitution is reporting that 3 Atlanta banks need to overhaul their foreclosure practices.

In a previous post to our Atlanta Bankruptcy Attorney Blog we suggest those dealing with bad mortgage debt seek the advice of an experienced bankruptcy attorney in Georgia to discuss their rights.

Federal regulators have ordered the 14 biggest U.S. mortgage servicers, including the Big Three of metro Atlanta, to revamp foreclosure practices, after an investigation found unacceptable documentation and a lack of assistance for struggling borrowers. A review of foreclosures from 2009 and 2010 will be done by consultants. If after review the foreclosure was deemed mishandled the consumer will be reimbursed.

The Big Three in Atlanta are SunTrust Mortgage, Charlotte-based Bank of America and San Francisco-based Wells Fargo. SunTrust happens to be the nation's 8th biggest residential mortgage servicer and recently reported document issues in 4,000 foreclosure cases. They are currently in the process of fixing these documentation errors which critics say were caused by "robo-signing".

This term in the foreclosure industry refers to the practice of banks signing thousands of documents without ever verifying the information contained in them. This practice calls into question the legitimacy of many mortgage foreclosures. There have been reports of a bank official who signed off on nearly 10,000 documents in one month. The worst allegations accuse banks of making up documents and forging signatures and notaries.

"The enforcement orders issued today are important, but they are only a first step in setting out a framework for these large institutions to remedy these deficiencies and to identify homeowners harmed as a result of servicer errors," the FDIC said in a written statement.

Continue reading "Foreclosure practices need overhauling in Atlanta" »

As many American families struggle to stay afloat in this tough economic environment, a new study found that credit card debt remains a leading cause of bankruptcy in Atlanta and elsewhere in the United States.

Equifax found credit cards cost households nearly 20 percent of their income, according to MSNBC. These statistics don't even take into account debt from various store-specific credit cards.

Our Atlanta bankruptcy attorneys highly recommend you seek the legal help of an experienced lawyer if you're experiencing financial troubles because of credit card debt. Credit card debt can burden many aspects of your life. Creditors can continually call and harass you in efforts to collect payments. Late fees and penalties can make it impossible to catch up. The stress can literally take years off your life. Consulting an experienced attorney can help you make a fresh financial start.

A separate study, conducted by Experian, found that the average consumer has racked up more than $4,000 in credit card debt. On a slightly positive note, that average illustrates a 4 percent decrease from last year. Whether the recession has led to increased savings or whether the reduction is attributable to credit card companies slashing credit lines is debatable.

MSNBC recently reported Atlanta is among the top five U.S. cities with the most individual credit card debt. The top five cities with the most debt are, listed in order, San Antonio, Jacksonville, FL, Atlanta, Honolulu and Dallas.

The average amount of debt in our city is $4,960 per individual. Such debt levels consume a substantial portion of the average consumer's income. Credit experts say that a combination of economic desperation and needless spending caused the city's increasing credit card balances. Atlanta was one of the top areas to suffer from the unemployment surge and the devastating housing market collapse.

Equifax's report does offer citizens a little bit of hope as it reports that total consumer debt declined slightly from the terrifying peak back in October of 2008. A grand total of 54 million households owe creditors a sum of more than $800 billion in debt from unpaid credit card bills.

Consumers are well advised to slash their dependence on the plastic cards and contact an experienced attorney in the event your credit card debt has grown out of control. An experienced attorney can help you navigate the best path to financial freedom.

CreditCards.com offers you these tips to help you with your credit card debt in the meantime:

-Avoid debt collection. Try to negotiate with the original creditor and work out a payment with them before letting them sell the account to a collection agency or another third party.

-Don't make it too easy. Consumers should avoid giving collectors their bank account number or routing numbers. Payments should be made with money orders or some other third-party payment service. Be sure to keep proof of payment but avoid paying with a personal check. Electronic withdrawals from bank accounts are a big no-no as well.

-Familiarize yourself with your rights. Read and understand the Fair Debt Collection Practices Act. This act details handling problems involving harassing and nuisance phone calls, threats and abusive language. These acts are illegal and should be reported to the Federal Trade Commission (FTC) and your state attorney general's office.

-Protect your bank accounts. As collectors can file suit against consumers for not paying debts, they can also freeze savings or checking accounts. Keep separate accounts for Social Security or disability payments received as these are exempt from use for court-ordered payments. "I would urge people not to co-mingle other funds into the bank account to which the Social Security and disability payments are going. That would help a lot of people," says Rozanne Andersen, executive vice president of ACA International, the largest credit and debt collection industry trade group.

Continue reading "Atlanta Bankruptcy: City ranks in Top 5 Nationwide for Credit Card Debt" »