Atlanta Bankruptcy Attorney Blog

A recent report in The New York Times found that bankruptcy numbers in June were down from May. But it doesn't necessarily mean that the economy is improving, rather Atlanta Bankruptcy Lawyers believe it likely means that credit companies and lenders are sucking more people into high interest rate loans and credit opportunities.

When bankruptcy numbers are up, it usually means that credit is tight and lenders aren't willing to help distressed people in need. When the numbers are down, research shows, it's probably because lenders are willing to extend credit to people in need.

But along with offering more credit, these predatory lenders are also offering high interest rates that hang over the heads of people desperate to keep going despite their own poor credit and high debt.

But there's hope and help.

Filing for bankruptcy in Atlanta is a way to use the law to a consumer's advantage. The laws are set up to help a person get out of debt by following a series of steps dictated by the court. The idea is that if someone is drowning in debt and wants to get back on track, they can use the law to do that. But they must be disciplined and must follow the procedures laid out by the judge.

There are different forms of bankruptcy, depending on the person's situation. Chapter 7 bankruptcy, for instance, is designed to help people who have maxed out their credit cards, been set back by unexpected and costly medical bills or a job loss that has left them financially ruined. With little or no assets and not much earning potential, Chapter 7 allows for a fresh start.

Chapter 13 is designed for people who have a lot of debt including a mortgage, but who want to stay in their homes. This form of bankruptcy in Georgia allows for the creation of a payment plan to take care of those debts over a 3- to 5-year time frame. Both forms can be effective tools to clear out debt that has taken years to amass.

According to The Times article, access to credit can influence the bankruptcy rate over the short term. Overall, rates are expected to be down slightly compared to last year. But that would still mean about 1.5 million people nationwide file for bankruptcy in 2011, an astounding number of people who have realized the value in this set of laws.

According to the American Bankruptcy Institute, there were 709,303 consumer bankruptcy filings in the first six months of 2011, which is down about 8 percent from the same time period in 2010.

So, many people are using this avenue to save their homes from foreclosure or preserve their financial future. If you believe this may be an option for you, call today. Setting up a free consultation is easy.

Continue reading "Atlanta Bankruptcy Filings Dip, but Levels Remain High For Help With Debt" »

Two recent stories out of Atlanta show the frustration and discouragement people are feeling from America's foreclosure crisis.

Fox News reports that home values in DeKalb County continue to sink because of a high number of foreclosures. And The Atlanta Journal-Constitution reports that a recent walk-in workshop about foreclosure drew 1,500 nervous homeowners.

Atlanta bankruptcy lawyers understand and have seen the desperation people are dealing with in Atlanta and throughout Georgia because of plummeting home values, lost jobs and the Great Recession. Keep in mind that foreclosure sales in Georgia take place on the first Tuesday of each month, but if you are facing an upcoming foreclosure sale, filing for bankruptcy will immediately stop the sale. It is one of the few ways to stop a foreclosure sale in its tracks.

Fox reports that DeKalb is continuously in the top of the state in terms of foreclosure numbers and many houses are selling for a fraction of the asking price. This drags down property values for homeowners who are still holding on and the cycle repeats itself.

And even while paying less in taxes, many homeowners are worried about the long-term impact after a third consecutive year of plummeting property assessments. With 60 percent of the county's revenue coming from property taxes, it may cause tax hikes to existing homeowners to make up the lost money.

Meanwhile, in College Park, a recent Hope Now Foreclosure Workshop drew more than 1,500 homeowners in danger of foreclosure hoping to talk with lenders and counselors about the crisis.

The Atlanta Journal-Constitution reported that the workshop was designed to cut through the confusion of telephone negotiations, emails and letters, which often leave homeowners frustrating and feeling unproductive.

While people have tried to use scam artist loan modification programs or debt counselors, filing for bankruptcy is the only way to guarantee a foreclosure is stopped in Atlanta. Filing for bankruptcy immediately will stop a foreclosure immediately.

Creditors and debt collection agencies are immediately notified and you are protected from having to pay outstanding debts while the process is ongoing. You must qualify based on income and other factors and our firm is dedicated to helping you make the right decision.

There are different forms of bankruptcy, depending on your income level, number and value of assets, and other criteria. Chapter 7 bankruptcy is typically more helpful for people who don't own a home and have little income, but have mounting debt. Chapter 13, however, is usually best for a person or family who owns a house or other large assets and can set up a payment plan over three to five years.

Most lenders are unwilling to modify a loan and the foreclosure process can move fast in Georgia, so don't hesitate. Consult with an Atlanta bankruptcy lawyer immediately to discuss your case.

Continue reading "DeKalb County Home Values Continue Freefall, Leading to Rise in Foreclosures" »

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ABC News reports that Atlanta music producer Jermaine Dupri's mansion was set to be auctioned on the courthouse steps recently, but the sale was abruptly halted.

Working your way out of debt and staring foreclosure in the face can be a scary proposition, but meeting with an experienced Atlanta foreclosure lawyer can make the difference between losing your house and owing a large sum of money and saving your house and putting together a manageable payment plans. Atlanta bankruptcy laws are designed to help the consumer in times of distress.

In Dupri's case, it's unclear why the foreclosure was abruptly stopped, ABC News reports. The mansion, on Mount Paran Road in the northwest part of Atlanta, is 15,000 square feet and he owes on the original $2.5 million loan.

Companies have also filed liens against Dupri's house. One contractor says Dupri owes him $12,000 for interior design and renovations made to the house. The Georgia Department of Revenue told the TV station he owes nearly $500,000 in back taxes from 2007, too.

What this shows is that anyone can get into debt problems that can become overwhelming. While Dupri is a successful celebrity with a career in the music industry, it appears from news reports and public records that he has compiled debt from which he can't recover.

While the story doesn't say for sure, it is possible that Dupri filed Chapter 13 Bankruptcy in Atlanta. The reason it's possible is because as soon as someone files for Chapter 13 bankruptcy, their foreclosure process stops and an automatic stay goes into place.

And Chapter 13 doesn't just apply to foreclosures. It can immediately stop creditors from calling and sending nasty notices of non-payment. Notices will be sent out to debt collectors, who will then be banned from contacting you. This applies to large amounts of credit card debt, unexpected medical bills or job loss that cripples your family's finances.

The process is designed to give homeowners, or others with large assets they want to keep, a fresh financial start. The laws allow people to create a payment plan that takes into consideration their income, living expenses and how much they can afford to pay. That plan will be in effect for roughly three to five years.

The important thing here is to make sure you are consulting with knowledgeable and responsible bankruptcy attorneys in Atlanta. Millions of people have used bankruptcy laws to their advantage to get debt under control. Don't continue toiling in debt and fending off annoying collectors. Take action.

Continue reading "Music Producer Jermaine Durpri Saves His Atlanta Mansion From Foreclosure" »