Atlanta Bankruptcy Attorney Blog

A new report from ForeclosureDataOnline.com shows that Georgia led the nation in the increase of foreclosure listings between March and April -- 7 percent.

As the local market is continuously flooded with foreclosed homes, it is further proof that home values will continue to drop. This is another important reason for homeowners to consider bankruptcy in Atlanta if they are pouring every last bit of their savings into an upside down mortgage. If you find yourself in this situation, set up a free consultation with Atlanta Bankruptcy Lawyers to determine what may be your best option.

According to the report, there were 3,575 foreclosure listings in March, which climbed to 3,828 in April, a jump of 7.08 percent. Closest to Georgia was Colorado, where foreclosure listings increased 6.62 percent. The Atlanta area saw a 28.9 percent increase, while Marietta foreclosure listings rose 23.6 percent. In Douglasville, listings increased a staggering 129.3 percent.

As the number of foreclosed houses flood the real estate market, those houses are getting deeply discounted, USA Today reports. According to the article, foreclosed homes are settling at a 27 percent discount compared to non-distressed properties nationwide.

All this goes to show that the American homeowner is in a precarious situation. Many homeowners are upside down on their mortgage because the value of their home has plummeted in the midst of the foreclosure glut. They are now stuck in a house that is worth far less than what they are paying for it.

And some are struggling to make payments, sinking thousands of dollars they have been saving for the future into houses that may take years or decades to recover in value.

For those who want to stay in their homes, simply threatening to file for bankruptcy could bring a bank or lending institution to the negotiating table if the homeowner is seeking a loan modification. Normally, banks are unwilling to modify loans because it isn't as beneficial as simply going through the foreclosure process and seeking a deficiency judgment against the homeowner.

But filing for bankruptcy, if the homeowner is concerned about losing his or her home to foreclosure, can help eliminate debts associated with property. Filing for bankruptcy immediately stops the foreclosure process and stops creditors and collection agencies from calling and bothering homeowners.

Getting this type of protection and being able to eliminate debts associated with an upside down mortgage can give people a very freeing feeling. Atlanta Bankruptcy Lawyers have been able to help many homeowners stuck paying for houses that won't increase in value by filing for bankruptcy and clearing away their debt.

Millions of people have taken advantage of these laws and have gotten out from under a house that is draining their finances and, in turn, harming their family's future. Contacting our firm for a free consultation to determine if this is a good option for you is the first step. Don't continue throwing away your money on a house that isn't worth what you're paying.

Continue reading "Increase in Georgia Foreclosures Lead Nation, Keep Home Values Down " »

While many people believe that filing for bankruptcy is going to leave them with bad credit, the inability to get a loan and no way to ever own a house, that's simply wrong.

Walletpop.com offers five tips to rebuilding your credit, finances and emotions after filing for Chapter 7 bankruptcy in Atlanta or Chapter 13 bankruptcy in Georgia.

Atlanta Bankruptcy Lawyers have seen the financial freedom that people experience once they've been through the bankruptcy process and no longer have the burden of creditors calling and sending letters to their home or work.

The first thing people should realize is that if you're considering bankruptcy, you're not alone and you shouldn't be ashamed. Bankruptcy laws are designed to help people willing to help themselves. The No. 1 cause of bankruptcy in America is sky-high medical bills, which are often no fault of the person paying them. With the Great Recession stripping jobs from millions of people, it's no surprise that people are seeking bankruptcy protection in record numbers.

According to The Wall Street Journal, bankruptcy filings in Georgia increased 6.1 percent from 2009 to 2010. And according to the American Bankruptcy Institute, there were more than 353,000 personal bankruptcy filings nationwide in the first quarter of 2011. In Georgia in the last quarter of 2010, more than 20,000 people filed for personal bankruptcy protection.

Here are the tips:

Let go of the guilt and shame: Some people consider filing for bankruptcy a sign of failure or disappointment, but it usually isn't. With the economy and the devastated real estate market, it is actually a smart move and one that can ensure the financial stability of a family's household long into the future. Plus, medical bills and outside factors are typically the reasons for bankruptcy, not always poor credit management.

Reflect and Regroup: Take some time after filing for bankruptcy to reflect on why you were in the situation in the first place. If overuse of credit cards, splurging or other problematic activities were the cause, resolve to stop that in the future. Allow the bankruptcy process to help you and lean on friends and family for emotional support.

Create a realistic budget and pay existing bills over time: After bankruptcy, stay on top of your finances. Create a budget and live within your means. Don't try to keep up with the Joneses. Pay off bills and don't get stuck with interest penalties.

Pick a credit card that can help you rebuild credit: Sometimes, secured credit cards can help you build credit. Many allow you to deposit a certain amount that acts as a spending limit. But some don't report your payments to credit bureaus, charge high fees and some people may not qualify. So, be careful.

Separate fact from fiction about bankruptcy: Many people think that filing for bankruptcy disqualifies them for getting any type of credit for 10 years. But, in fact, many people get dozens of credit card offers just after bankruptcy. Some car dealers are willing to offer good interest rates and some can even get home loans shortly after bankruptcy is finalized.

Continue reading "Life After Bankruptcy in Atlanta Easier With Five Tips for Moving On" »

A recent report by The New York Times states that the percentage of homeowners has reached 1998 levels and could continue declining to levels not seen for 30 years as people are trapped in upside down mortgages and dealing with foreclosures in Atlanta and elsewhere.

Atlanta Bankruptcy Attorneys have seen the frustration experienced by homeowners dealing with mounting debt or uncooperative banks. We know that there are always bills to pay and with unexpected medical bills, the loss of a job or increasing credit card debt, it's not always easy. That's why we are here to guide people into making the best decisions for their financial futures.

The New York Times article reports that given the Great Recession and the collapse of the nation's housing market, the percentage of homeowners has dropped to a low level of 66.4 percent. That's down from 69.2 percent in 2004. Analysts believe the levels could continue declining.

Many people believe the drop in home ownership is simply a matter of the economy -- lost jobs, more debt and an increased number of foreclosures. But because of the recession and the problems people are having with their homes, many Americans don't see owning a home as part of the American Dream anymore. Fears of having their house fall into foreclosure because of a market collapse has caused many people to become satisfied with renting.

Bloomberg reports that the S&P/Case-Shiller index of property values in 20 cities fell 3.6 percent from March 2010, the biggest year-over-year decline since November 2009. The index is the lowest it has been since March 2003, which analysts believe means prices will continue to steadily drop.

Atlanta Bankruptcy Attorneys have seen the many people who are struggling to make payments and wished they had never bought a house in the first place. But there are also many others who are frustrated by the housing market collapse and who want to stay in their house, though it has become increasingly difficult to make payments. Still, they find banks are often unwilling to modify a loan in Atlanta.

So for many, the answer is to file Chapter 13 bankruptcy in Atlanta. Chapter 13 bankruptcy is different than Chapter 7 bankruptcy, which people may be more familiar with. Chapter 13 allows people to stay in their homes and propose a payment plan over a 3- to 5-year period to satisfy their debts. It may also pressure banks into making a modification.

While many people may think bankruptcy is embarrassing, they shouldn't. Millions of people have used these laws to protect them and to recover from debt caused by credit cards, large medical bills or unemployment.

According to March statistics by the United States Bankruptcy Court, nationwide Chapter 13 filings rose 5 percent to 438,788 from the 415,966 bankruptcies filed in the 12-month period ending March 31, 2010. The number of Chapter 13 filings came in second only to Chapter 7 filings.

Continue reading "Georgians' Dream of Owning a Home Dropping; Bankruptcy and Foreclosure Defense are Options" »

The Marietta Daily Journal reports that a recent study found that Georgia residents are putting more money into their personal savings and spending less on credit cards.

This is great news for Georgia consumers saddled with increasing personal debt. Atlanta Bankruptcy Lawyers believe that perhaps the many people who have recently filed for bankruptcy in Georgia have been able to become free from creditors and have begun saving for the future. If you or a loved one is struggling with debt and unable to put away money for the future, it's possible that filing for bankruptcy in Atlanta could be the best way to get back on track financially.

According to statistics from the U.S. Bankruptcy Court for the Northern District of Georgia, nearly 22,000 people filed bankruptcy in the Atlanta area through May. The area is on pace to come close to the nearly 55,000 filings from 2010.

According to a study by the Georgia Credit Union Affiliates, balances of credit union members' savings accounts grew by more than 4.6 percent and money market accounts grew by 4.34 percent during the first quarter of 2011.

Being able to save for the future and not having to deal with nagging creditors is refreshing. And one surefire way to accomplish that is by consulting with Atlanta Bankruptcy Lawyers to see if filing for Chapter 7 or Chapter 13 bankruptcy is the best strategy for you and your family.

What bankruptcy laws allow for is for consumers to take charge of the debt that has amassed and figure out a plan to stay out of debt in the future. Filing for bankruptcy immediately stops the foreclosure process and halts creditors and collection agencies from contacting you. Chapter 7 bankruptcy allows consumers to sell off assets to pay creditors, while Chapter 13 allows people to keep large assets while setting up a payment plan over a 3- to 5-year period. And in many states, there are exemptions in bankruptcy, which allow you to keep vehicles, personal possessions and family heirlooms.

Many people are in a tough spot right now because of the failing economy and the high jobless rate, which currently sits at 9.9 percent in Georgia, nearly 1 percent higher than the national average, according to the Georgia Department of Labor. And continuing to struggle financially may not be in the best interests of consumers in the Atlanta area. Job loss, predatory credit card companies or an unexpected medical bill are the leading reasons people file for bankruptcy. With millions of people nationwide taking advantage of bankruptcy protection, it's time to act.

It may be time to take a hard look at your finances, your debts and what can be done to live a better life financially. If you aren't sure where to turn or what to do, use our free personal debt analysis so our debt consultants can help you determine if bankruptcy would help you get free from debt so you, too, can start saving more and spending less.

Continue reading "Georgians Savings Rate Increases as Credit Card Debt Falls, Possibly Due to Bankruptcy Filings" »

Atlanta Business Chronicle reports that foreclosures declined in April from March, though the Peach State still had the eighth-highest number of filings nationwide.

But don't think this means America's foreclosure mess is over. Most experts believe the recent drop in foreclosure filings simply reflects the problems banks and their law firms have had over filing bad paperwork. Don't let your guard down. If your home is on the brink of foreclosure, don't hope the bank forgets about you because it won't. Consult with Atlanta Foreclosure Attorneys to protect your home and you future.

According to the news report, Georgia had 8,479 foreclosures in April, which was a 35 percent drop from March. It's also down 39 percent from last April. Nationwide, there were 219,258 foreclosures, which was down 9 percent from March and 34 percent from April 2010.

Experts, though think foreclosures will tick up this year. RealtyTrac predicted in January the number of foreclosures will peak in 2011. More than 2.8 million properties got notices of default, auction or repossession in 2010. That number climbed despite a plunge in filings in late 2010 when lenders came under fire for their practices, Bloomberg reported.

Attorneys general in all 50 states are investigating whether banks and loan servicers used faulty documents and bogus signatures on documents, which has been called "robo-signing." Many lenders halted foreclosures as they did their own investigations.

Many of us are underwater on our mortgage payments. It's also possible that you were able to make your payments until a recent unemployment or family medical emergency that left you stuck with thousands of dollars in medical bills that don't allow you to function as you previously were able.

Consider Chapter 13 bankruptcy in Georgia:

• Do you have regular income in your household?
• Are you at risk of foreclosure and want to save your house or protect your finances?
• Has job loss, divorce or other hardships caused unavoidable financial problems?

If you fall into one of these categories, you may qualify for Chapter 13 bankruptcy. What this form of bankruptcy does is allows people to set up an affordable payment plan to pay off debt. But if you are able to make payments over a 3 to 5 year period, you can eliminate debts and still keep your home and other assets.

Atlanta Debt Lawyers are here to answer your tough questions about Chapter 13 bankruptcy, saving your home and other matters in your financial life. Fill out our free personal debt analysis and set up a free consultation immediately.

Continue reading "Georgia Foreclosures Drop, But More Are Likely Coming" »

With people still reeling from the Great Recession, bankruptcy filings are on a constant uptick. In Georgia, personal bankruptcy filings increased from about 50,000 in 2007 to nearly 77,000 in 2010, which is a 54 percent jump, the American Bankruptcy Institute reports.

That tells the story about why you should consult with Atlanta Debt Lawyers if your personal debt is growing out of control. Don't let it continue to mount until you are drowning in unpaid loans and credit card bills. Stop creditors from harassing you, your work and your friends.

AACER and the American Bankruptcy Institute noted that in 2010, Nevada led the country in bankruptcy filings, followed by Tennessee and Georgia. Nevada had 10.3 filings per 1,000 residents, while Tennessee had 8 and Georgia more than 7. Often it can be a job loss or a catastrophic health issue that causes bills to pile up. It's not always poor spending habits that lead to high debt numbers.

But regardless of the reason for the debt, many people right here in the Atlanta metro area need help. Atlanta bankruptcy attorneys can help. If you are behind on payments, are fending off calls from bill collectors or hanging on to your home by a thread, bankruptcy may be the process that eliminates many of your problems.

While bankruptcy isn't for everyone, the laws are set up to help people who are unable to get out from under the many forms of debt that can cause emotional and physical problems. Atlanta Chapter 7 bankruptcy may be best for you if you have few assets and low income and you're struggling to pay the minimum on your credit cards every month. But it's also possible that Chapter 13 bankruptcy works best if you have a large asset like a home that you want to save. Filing Chapter 13 bankruptcy in Georgia stops the foreclosure process and allows you to set up an affordable payment plan while still salvaging some of your assets.

Here are some shocking debt statistics from economywatch.com:

• The total amount of consumer debt in the US is nearly $2.4 trillion in 2010. That's $7,800 debt per person.
• Thirty-three percent of that debt is revolving debt (such as credit card debt), the other 67 percent comes from loans (such as car loans, student loans, mortgages and the like).
• $51 billion worth of fast food was charged to credit cards in 2006, compared to $33.2 billion the previous year.
• The average credit card debt per cardholder is $5,100, and expected to increase to $6,500 by the end of the year.
• 1 in 10 consumers has more than 10 credit cards.
• The average consumer carries 4 credit cards. While the average household carries $6,500 of debt.
• 1 in 50 households carry more than $20,000 in credit card debt. That amounts to more than 2 million households.
• 4.5 percent of cardholders are 60 or more days late in their payments.
• Roughly 2 - 2.5 million Americans seek the help of a credit counselor each year to avoid bankruptcy.
• On average, clients seeking financial counseling were $43,000 in debt. Of which $20,000 was consumer debt and $8,500 was revolving debt (such as credit card debt).
• By the end of 2010, there were 115,000 bankruptcy filings in California alone. Across the US, 1 in every 160 people filed for bankruptcy.
• The states with the highest credit card debts were Alaska ($7,665), Tennessee ($7,054) and Nevada ($6,517).

Continue reading " Georgia, America Struggle With Increasing Debt" »

A Lawrenceville couple once saddled with more than $83,000 in credit card debt tackled it over a five-year period, The Atlanta Journal-Constitution reports. It's an amazing feat for any American.

But despite this feel-good story, it is exceedingly rare for people with that much debt to be able to conquer it on their own. While it's possible, it takes strict dedication, sound advice and favorable conditions to be able to climb out of crushing credit card debt in Atlanta. The Atlanta bankruptcy law firm is here to assist you if you've fallen into mounds of credit card debt you can't deal with.

The Georgia couple was able to get rid of that mountain of debt by consulting with a finance expert, using cash, not taking vacations or impulse spending and cutting back on credit card use. They made large monthly payments to avoid high credit card interest rates. That is all sound advice, but statistics show the couple is in the minority in their ability to cut credit from a budget.

In its monthly report in May, the Federal Reserve said overall consumer credit rose $6 billion to $2.426 trillion, meaning that much credit is being used in the United States for purchases and loans.

Credit debt is one of the leading causes of bankruptcy in Atlanta. And while it is a frightening word for those who don't understand its benefits, bankruptcy can often save you from the stacks of credit card bills that have been piling up for years.

Bankruptcy saves millions of people from unmanageable debt loads. But there are different types of bankruptcy filings, so choose wisely. You may be eligible for Chapter 7 bankruptcy and Chapter 13 bankruptcy, but one may not help you as well as the other.

For instance, Chapter 7 bankruptcy in Fulton County is designed to allow someone to liquidate to get rid of credit card debt, personal loans, wage garnishments or payday loans. It may be helpful to you if you have few assets and little income.

But maybe you are years into your mortgage payments but still are feeling the effects of your credit card debt, health problems, marriage problems, issues getting by and paying for gas and food. It's possible that Chapter 13 bankruptcy is your best bet.

This form of bankruptcy can allow you to keep your home and still prevent debt from controlling your life. It will require a payment plan that you can manage for 3 to 5 years. It can be a good way to simplify your life and help you avoid foreclosure.

Continue reading "Credit Card Debt in Georgia can Lead to Bankruptcy" »

A New York Times article reports that the institutions that service about two-thirds of the mortgages in the United States have offered $5 billion to settle allegations of robo-signing and other shady practices that wrongfully took away homes from troubled borrowers.

It's not news that foreclosures are a problem in Georgia and elsewhere in the United States, but what is disturbing to Atlanta DebtStoppers is how banks and financial institutions think they can just cut a check and pay off the unethical and immoral acts they have committed with the rise of mortgage foreclosures. If you or a loved one needs help stopping foreclosure in Atlanta, call today.

Financial institutions have come under fire by attorneys general across the country because of allegations of immoral practices, such as robo-signing, where mortgage servicers paid by the banks to process paperwork would sign documents without looking at them. Many of the documents, which were supposed to be signed by executives, were rubber-stamped by unqualified workers. Some were forged.

In many cases, banks also lost paperwork, or used paperwork that was incorrect in the process of trying to foreclose on a person's house. All of these problems have denied homeowners due process in the handling of the foreclosure process.

While attorneys general want the banks to pay $20 billion for their transgressions, the banks offered only $5 billion. The Wall Street Journal later reported the states' head prosecutors countered with $17 billion.

But as the banks and states negotiate a settlement, the housing market hasn't gotten any better. Banks own nearly 875,000 foreclosed homes, according to RealtyTrac, a research firm. New home sales are sluggish and existing home sales aren't very good, either.

What does all this mean for you, the homeowner who is struggling to get by making payments on a home that may not be worth what you paid for it? It means you should consult with an Atlanta Foreclosure Attorney if you think you will soon fall behind on making payments on your house.

It's rare, but sometimes possible, for a homeowner to successfully convince the bank to modify their loan to correspond with its current value. While it can happen, financial institutions have been unwilling to help homeowners who want to try to stay in their houses. They would prefer to file a foreclosure lawsuit, go to court and hope a judge slams the homeowner with a judgment.

If you are already in foreclosure but want to save you house, discussing Chapter 13 bankruptcy could be an option for you. It immediately stops foreclosure and allows you to work on a 3- to 5-year payment plan to pay off your debts.

Continue reading "Banks Hoping to Pay Fines to Settle Bad Foreclosure Practices in Atlanta, US" »