Atlanta Bankruptcy Attorney Blog

A recent article in The New York Times reports that about 20 percent of those looking for financial counseling in 2010 and 2011 cited medical debt as the No. 1 cause for seeking bankruptcy protection in Atlanta.

Studies have long shown that medical bills, job loss and predatory lending practices -- such as offering lower interest rates for a time only to see them spike to incredible highs later on -- have led to people considering bankruptcy in Atlanta and nationwide. Debt can cause family problems and make getting by day-to-day difficult.

A freak accident -- your fault or not -- can cause even a family with sound finances to go into a tailspin. No one can really get a handle on the out-of-control medical costs that have made life difficult for many Americans. Universal healthcare, federal programs and other failed initiatives have tried to get a handle on what hospitals charge and what insurance companies actually cover. For those who are uninsured, the toll can be even more devastating.

The article states that according to a CredAbility survey, an Atlanta-based nonprofit credit counseling business, the number of people who say medical bills are a major factor in their decision to file for bankruptcy has jumped about 7 percent since 2010 and 8 percent from 2009. The analysis included more than 100,000 clients nationwide in each of the two previous years plus another 47,000 for 2011.

As unemployment jumps, many people have lost healthcare coverage, yet with one spouse bringing in a steady paycheck, it's possible that people don't qualify for programs that would cover medical costs in an emergency. Insurance companies are trying to make money by jacking up premiums and deductibles, as well.

Experts believe that debt from medical bills is an increasing problem not only because of the high costs, but also because people are less-likely to default on medical bills compared to other types of bills. Some people take out additional credit cards in order to make the payments.

"With medical bills, people are very compelled to make good on those debts," said Michelle Jones, the senior vice president of counseling for the agency. "If you're sick, it's the person taking care of you. So they feel bad about not making the payment. People take extraordinary steps to pay them."

Medical bills also carry an extra layer of frustration and stress because hospitals and clinics are more apt to use collection agencies rather than play phone tag with a patient who won't pay for expensive procedures not covered by insurance. Creditors calling, e-mailing and bothering can add to the already present stress of being in debt.

Medical bills can sneak up on a person because they usually come out of nowhere -- a car accident or cancer or another illness that wasn't expected -- and can paralyze a family's finances. And hospitals tend to treat their bills as if they must be paid right away. They forget that people must pay for their houses, feed their families and get gas to go to work, too.

If medical bills get to be too much, bankruptcy in Atlanta can ease the pain. If credit scores are plummeting and bills are piling up, the process will clear debt and allow a consumer to move on with life, without the anchor of debt pulling them down.

Continue reading "Medical Bills Increasing Factor in Atlanta Bankruptcy" »

A recent poll by Bankrate.com suggests that nearly one in four American consumers don't have an emergency fund backup.

This is bad news, but not necessarily shocking considering the toll the Great Recession has taken on Americans and those throughout Atlanta in particular. The local real estate market has taken a huge hit with nearly 1 in every 300 houses are in foreclosure. That has led to many people losing money and dipping into their savings accounts.

As credit card debt mounts, this can lead to people considering bankruptcy in Atlanta. Consulting with an experienced Atlanta Bankruptcy Attorney may be prudent for those who are struggling with debt.

According to the article, most people surveyed aren't prepared to deal with contingencies, while about another 24 percent have the recommended six months of savings. About 6.2 million people stay out of work for six months or longer, which shows how many people aren't prepared in a climate in which a shaky economy and constant job loss pose major financial struggles for people.

"The majority of Americans still have much work to do in building an adequate emergency savings cushion," said Greg McBride, a senior financial analyst for Bankrate.

McBride attributed the numbers to the challenges of the economy and struggling job market as many people aren't able to store away money right now. Most respondents under 30 who make less than $30,000 a year were the most likely to have no emergency funds, while those between 50 and 60 and those in higher-income households were most likely.

If possible, McBride says, people should try to put a little money away from each paycheck and work to spend less.

Other findings of the survey:

• Bankrate's Financial Security Index showed that feelings of financial security was down from May to June.
• Nearly 1 in 5 respondents said they feel better about their their debt compared to last year and 19 percent feel less comfortable.

It's sound advice to put away money from a paycheck into savings. But what about people who aren't getting a paycheck? What about people who have $150,000 in medical expenses and are trying to scrape by and pay back debt while collection agencies are constantly calling? It should be easy to see why for those people, having an emergency fund isn't possible.

And as credit card and loan debt gets higher and higher and consumers get hit with fees and high interest rates, it makes it all that more difficult to get back on track. And while some people may think that filing for bankruptcy in Atlanta would hit a person's credit score, those with piles of debt and late payments probably already have a low score.

But filing for bankruptcy can eliminate debt and set them free from creditors and put them back on track to recovery. Setting up a free consultation with an Atlanta Bankruptcy Attorney should be the first step to a new life.

Continue reading "A Quarter of Atlanta Consumers Don't Have Any Savings And Rely On Credit" »

According to a recent article by U.S. News & World Report, several senators and representatives in Washington have proposed legislation that would allow people who file for bankruptcy in Atlanta and nationwide to include student loans in their debt relief.

This is great news for those who are saddled with mounds of student loans that can't be paid back. If you are a recent graduate or even someone who has been paying back bills from college for years, consulting with an Atlanta Bankruptcy Attorney would be a prudent first step to take.

As college costs continue rising, most of those increases are passed onto students. Coupled with an economic climate that has made even the most experienced job candidates uncertain of their prospects, it is good news to think that lawmakers may actually be doing something to help.

Democratic senators from Illinois, Minnesota and Rhode Island as well as Democratic representatives from Tennessee, Illinois, Michigan and California introduced parallel measures recently that would restore the ability to discharge commercial student loans in bankruptcy proceedings, reversing a change made in 2005.

And the measure comes at a good time. According to the John J. Heldrich Center for Workforce Development at Rutgers University, only 56 percent of 2010 graduates were able to find work. That's down significantly from the classes of 2008 and 2009.

"Before changes were made to the bankruptcy code in 2005, only government issued or guaranteed student loans were protected during bankruptcy," said Sen. Dick Durbin (D-Ill.) in a press release. "This protection has been in place since 1978 and was intended to safeguard federal investments in higher education.Today's bill would restore the bankruptcy law, as it pertains to private student loans, to the language that was in place before 2005, so that privately issued student loans will once again be dischargeable in bankruptcy."

Changes to the bankruptcy code in 2005 took out the provision to claim student loans during bankruptcy, but if the new measure passes, it would make getting rid of debt much easier. Currently, a person must show that paying student loans presents an "undue hardship" or that they are physically unable to work and therefore pay back the loans.

And according to the Department of Education, the default rate on student loans for the 2008 fiscal year was about 7 percent, showing that students stuck jobless and without prospects simply stopped paying on loans for education that hasn't helped them find work.

According to that data, student loan default rates for some Georgia colleges and universities over a two-year period:

1. Georgia Southern University: 3.70%
2. Georgia State University: 2.92%
3. Georgia Institute of Technology: 1.53%
4. University of Georgia: 1.52%
5. Emory University: 1.08%

This provision would make the already helpful option of filing for bankruptcy a good fit for some people. Filing for bankruptcy can help a person discharge most debt and allow them to start over financially. It takes some work and consultation from an experienced Atlanta Bankruptcy Lawyer, but it can lead to a fresh start.

There are other forms that allow people to set up a payment plan that is affordable and pay back part of the debt that has been build up over time. Struggling to keep one's head above water is no way to live. Use the options available to all Americans under federal law.

Continue reading "Student Loans May Become Eligible for Atlanta Bankruptcy Debt Relief" »

Notices of foreclosure in The Times-Herald for August are up from July and are over 200 for the first time since March, the newspaper recently reported.

This is more bad news for our local economy, as the real estate market in Atlanta and throughout Georgia continues to get hit during the country's slow economic recovery. According to RealtyTrac, Georgia has the third highest foreclosure activity, behind only California and Florida. In much of the metro Atlanta area, one in every 300 or houses is in foreclosure.

Many people are struggling to stay in their homes right now. Job loss, the poor economy and unexpected medical bills can lead to missed mortgage payments and a foreclosure could be looming. Banks typically aren't willing to work with homeowners, which can leave them feeling desperate and alone. But filing for bankruptcy in Atlanta immediately stops the foreclosure process. Creditors are no longer allowed to call and even if the house is 12 months behind in payments and scheduled for sale the next day, foreclosure can be stopped with the help of an Atlanta Bankruptcy Lawyer.

According to the Newnan newspaper, the number of foreclosure-related ads are up 37.9 percent from July and were the highest number since March. However, the number overall is down 16 percent from the 253 foreclosure-related ads that ran in August 2010.

Numbers from CoreLogic show that the rate of foreclosures among outstanding mortgage loans was 3.07 percent for May, which was down from May 2010 in the Atlanta-Sandy Springs-Marietta area.

And the mortgage delinquency rate in the metro Atlanta area decreased. In May, 9.1 percent of mortgage loans were 90 days behind compared to 10.27 in May 2010, the newspaper reports.

Most of this is bad news for the local real estate market and this has profound effects on two specific groups of people. For those who are staying in their houses and are financially sound, the piles of foreclosure notices that hit newspapers daily and the reports that come out are a bad sign for property values.

But these numbers are perhaps more impactful for those who are in serious risk of losing their homes. As foreclosures rise, banks may be less likely to work with those who are on the cusp of losing their house to foreclosure. Sometimes, banks can make more money off the foreclosure process and attempt to come after borrowers for the difference between a sale and what is owed on the house.

But to stop foreclosure in its tracks, a person can file for bankruptcy protection. And more and more people in Georgia are turning to that option. According to the American Bankruptcy Institute, nearly 18,000 Georgians filed for bankruptcy in the second quarter of 2011, which is down slightly from the first quarter.

Many people are able to keep their homes after a bankruptcy proceeding, depending on the circumstances. And it's possible for someone to lose their house, but still make a recovery in short time to purchase a new house -- without the baggage of tens of thousands of dollars in bad debts.

In the long run, bankruptcy improves the credit scores of those who go through the process and it wipes out debt, so people are able to move on with life and get a fresh start. It may be advantageous to consult with an Atlanta Bankruptcy Lawyer to discuss your situation.

Continue reading "Foreclosure Numbers Top 200 in Newnan First Time Since March" »

The Atlanta Bankruptcy Attorney Blog has reported before about the woes of Atlanta's housing market, as foreclosures have haunted this great city and surrounding area.

But recent news suggests that the area's high unemployment rate coupled with the glut of foreclosures has left the Atlanta area in real trouble. It's a bad cycle that will likely take years to correct -- high unemployment leads to foreclosure leads to bankruptcy in Atlanta. While it may be hard for some to come to terms with their financial situation, others realize that they can obtain financial freedom after consulting with an experienced Atlanta Bankruptcy Lawyer.

According to the Atlanta Journal-Constitution, Atlanta has the fourth sickest housing market among the country's largest 75 metro areas.

The website pulled U.S. Census Bureau data on the largest markets and ranked the cities with the overall highest vacancy rates for homeowners and rentals for the second quarter of 2011. Atlanta's homeowner vacancy rate was 5.4 percent and rental vacancy rate was 11.8 percent.

"The city, which had a significant influx of new residents, particularly from the northeast, has been hit hard," the website said, citing the high unemployment rate.

The Top (or Bottom) Ten:

1. Tuscon
2. Indianapolis
3. Memphis
4. Atlanta
5. baton Rouge
6. Dayton
7. Detroit
8. Kansas City
9. St. Louis
10. Oklahoma City

It's no surprise that the Atlanta area has a tough housing market. Look around and you'll notice for sale signs or overgrown yards that are the indication of neighborhoods hit by foreclosure.

But foreclosure can be stopped immediately by filing bankruptcy in Atlanta. Whether you are just one month behind on payments or the house is scheduled to be sold tomorrow on the courthouse steps, bankruptcy stops the procedure. It also stops creditors and lending agencies from harassing you.

Foreclosure, by definition, is the legal action taken by the banks to take possession of a house because of non-payment. In Georgia, the law permits judicial and power of sale foreclosures. Power of sale is most common and is very fast. Most mortgages contain a clause allowing the lender the right to sell the property outside the court system.

For many people who are upside down on their mortgage because of the current property values, professional legal advice is a must. It's possible to seek a loan modification from the bank, but many times, they won't even listen.

The only proven way to stop foreclosure is filing bankruptcy. In Chapter 13 Bankruptcy, the homeowner is able to set up a payment plan over three to five years that is affordable to them in order to pay back debt. But even under Chapter 7 Bankruptcy -- by far the most popular bankruptcy filing -- it may be possible to keep a house and still have debts forgiven.

Continue reading "Atlanta Housing Market Fourth Worst In Nation, Leading to Foreclosures, Bankruptcy" »

Despite ongoing investigations by all 50 states, including the Office of Attorney General of Georgia, an Associated Press investigation recently revealed that mortgage companies are still using "robo-signed" documents in foreclosure cases.

Many hoping to safe their homes are using allegations of faulty paperwork. However, banks can fix paperwork and still foreclose on a home. But what banks can't do is foreclose on a house if the homeowner has filed for Chapter 13 bankruptcy in Atlanta. Atlanta Bankruptcy Lawyers have helped countless homeowners save their houses after filing for bankruptcy.

According to The Associated Press, county officials in at least three states say they have still been receiving documentation that appears to be "robo-signed" as opposed to actually signed by bank officials who have reviewed it for accuracy. "Robo-signing" means that mortgage servicers, companies that banks have hired to process paperwork in foreclosure cases, have signed documents that have purportedly been reviewed for accuracy, though they haven't.

The attorneys general in all 50 states have launched investigations into alleged "robo-signing" in order to protect the rights of homeowners. The Associated Press reports that last fall, the nation's largest banks and mortgage lenders, including JPMorgan Chase, Wells Fargo, Bank of America and an arm of Goldman Sachs, suspended foreclosures while they investigated how corners were cut to keep pace with the crush of foreclosure paperwork.

Critics say the new findings point to a systemic problem with the paperwork involved in home mortgages and titles. And they say it shows that banks and mortgage processors haven't acted aggressively enough to put an end to widespread document fraud in the mortgage industry.

"Robo-signing is not even close to over," says Curtis Hertel, the recorder of deeds in Ingham County, Mich., which includes Lansing. "It's still an epidemic."

The story points out some scary findings, which show that banks and lenders haven't taken seriously the problem of robo-signing and still have yet to cope with the droves of foreclosures in the real estate market nationwide. But they are on notice to improve their documentation, which could be troublesome for many homeowners.

But where bankruptcy comes in is simple. Are you facing piling debt because of medical bills, job loss and credit card debt? Have you begun missing payments on your house but want to keep your home? If this seems like your situation, Chapter 13 bankruptcy in Atlanta could be a solution.

Under this code of law, a consumer can keep large assets and set up a payment plan over three to five years that would eliminate debts after they are paid off. Filing for bankruptcy immediately halts the foreclosure process and stops creditors from calling. Working with an experienced Atlanta bankruptcy lawyer can help you save your home and get on with life.

Continue reading ""Robo-Signing" Continues, Despite Georgia Attorney General's Investigations" »

The Atlanta Journal-Constitution got it right in a recent headline: "Foreclosures slow in metro Atlanta, but no end in sight."

Many people facing foreclosure or on the brink of foreclosure throughout Georgia have seen headlines about foreclosure filings dropping and other quasi-good news clips in recent months. But this isn't really good news at all. Atlanta Bankruptcy Lawyers believe now is the time to discuss your options with a qualified debt relief attorney.

What most experts believe is that foreclosures will begin to increase at a rapid rate by the end of 2011 and into 2012. The backlog occurred because banks halted foreclosures in late 2010 because of allegations of "robo-signing" and filing false paperwork in foreclosure cases, discovered by homeowners and their attorneys.

Many banks and lenders were using mortgage servicers to shuffle through millions of pages of paperwork with the court, much of which wasn't checked for accuracy -- in some cases banks were falsifying documents at a wholesale pace and were caught by attorneys defending the rights of homeowners. And many documents were "signed" by bank officials who never actually saw the documents.

Many judges throughout the country have stopped foreclosure cases and told banks they can't proceed because of their bad-faith efforts. So, many lenders stopped filing foreclosures until they had all their paperwork lined up and correct. Experts believe a new flood of cases may soon be coming.

The New York Times recently reported that it will take some states half a century at the current rate to clear the backlog of foreclosure cases that have piled up for years. While banks have agreed to reform their foreclosure procedures after admitting to illegally processing foreclosures, the process is still slow-moving.

In New York, foreclosure filings are down 85 percent since September. The large number of cases -- some two million active and another two million that are pending -- has overwhelmed lenders. And many major foreclosure law firms that churned out thousands of cases were shut down after the allegations of illegal filings were revealed.

Atlanta bankruptcy lawyers believe meeting with our lawyers now is the key to making sure you are able to best resolve your issues in an Atlanta foreclosure. One surefire way to stop foreclosure immediately is to file for bankruptcy protection.

Filing for bankruptcy protection will immediately tell collection agencies and creditors that the foreclosure process must stop and calls from creditors will cease. While trying to modify a loan or work on other solutions may be a homeowner's first resort, these rarely work until the bank faces the prospect of a homeowner's bankruptcy.

Now is the best time to meet with our firm to assess your problem. Debt that leads to bankruptcy is often caused by medical bills, in conjunction with job loss and credit card debt. A tough economy has compounded the problem. But there is hope and the country's bankruptcy laws are designed to help the consumer recover.

If you are facing a precarious mortgage situation or need advice on what to do to save your home, call our firm today. Fill out our free personal debt analysis so we can assist you however possible.

Continue reading "Atlanta Foreclosures Taking a Dip, but Now is the Time to Act on Your Debt" »

According to a new study released by MasterCard, 55 percent of consumers are not familiar with their credit cards' benefits and some even paid extra for the perks they already had, lowcards.com reports.

Credit cards often get a bad rap for interest rates and hidden fees, and for good reason. These companies use the lure of benefits such as airline miles and cash back promises to rope people into signing up for cards that typically land them in hot water. These companies love to put out seemingly positive stories to try to get people interested in their product.

But, the bottom line is that Atlanta Bankruptcy Lawyers have seen many consumers trapped into unmanageable debt because of predatory fees and surcharges that result in filing for bankruptcy in Atlanta.

The pro-credit card article cites many of the benefits that card owners can get:

Car Rental Loss/Damage Insurance
Extended Warranties
Purchase Protection
Security From Unauthorized Purchases
Travel Accident Insurance
Trip Cancellation Insurance
Lost Luggage Insurance
Travel Emergency Assistance
Emergency Assistance
Roadside Assistance

While some of these offers could be useful, often they go ignored, the article states. But what can't be ignored are the outrageous interest rates that many of these credit cards bring to people who are simply trying to help their credit score or get by with a little financial help.

Credit card debt is one of the top reasons people file for bankruptcy in the first place and there's no denying that sticking someone with a 20+ percent interest rate contributes to their financial decline. Even paying the minimum a few times can ruin a family's finances.

According to Forbes.com, credit card companies have sent billions of credit card offers out as people try to pick up the pieces and try to recover from one of the worst financial crises our country has ever seen. Forbes reports that in 2010 there were 2.82 billion credit card offers mailed to residents, which soared from 1.39 billion in 2009.

And it's these perks that companies are using to try to entice new customers into signing up for credit cards. Experts believe companies are also trying to lock in customers with good to excellent credit scores.

"The competition among credit card issuers has definitely stepped up," said CreditCardFlyers.com senior analyst Doug Levy. "They are sending out more solicitations."

The issue is rampant -- according to U.S. Census data, there were 173 million credit card holders in the United States in 2006 and that was expected to grow to 181 million by 2010, according to www.money-zine.com. And along with all those card holders comes the debt. In 2006, Americans carried about $886 billion in credit card debt, which was expected to increase to $1,177 billion by the end of 2010.

If you have been a victim of predatory credit card practices and are considering bankruptcy to start over, contact our firm. Our lawyers are ready to advise you on any financial issue that may be plaguing you. Call today for a free consultation.

Continue reading "Study Finds Most Atlanta Credit Card Users Don't Know the Perks, but They Probably Know the Pitfalls " »

Foreclosure notices in metro Atlanta rose 16 percent from a 30-month low set in June, according to The Atlanta Journal-Constitution. There were 8,579 notices in the 13-county area, a 4 percent increase from July 2010.

Atlanta Bankruptcy Lawyers know that many of these homeowners are hurting and wondering what to do and where to go. Many will seek out home loan scams or debt consolidation companies in the hopes that they can help them keep their house. But they should also consider filing bankruptcy in Atlanta.

Whether a homeowner is one month behind on house payments or their house is being sold on the courthouse steps tomorrow, filing bankruptcy will stop it immediately. It is the only 100 percent sure way of stopping a foreclosure and millions of Americans have found out how helpful bankruptcy laws can be in reshaping a person's financial future.

The Atlanta Journal-Constitution reports that foreclosure notices published this month are for auctions at the courthouse scheduled for next month, leaving time for banks and homeowners to negotiate a resolution, if possible. The newspaper reports that it's unclear how much of an impact the highly-publicized problems with mortgage documents are having on the figures.

The breakdown of notices by county:

Gwinnett: 1,817
Fulton: 1,580
DeKalb: 1,322
Cobb: 1,019
Clayton: 688

While most of the foreclosure notices relate to residential properties, analysts have also seem a rise in hotels and motels and other commercial properties that have been given notices in Georgia.

As the Atlanta Bankruptcy Attorney Blog previously reported, Georgia led the nation in the increase in foreclosure listings between March and April. Researchers believe that a flood of foreclosed homes continue to keep home values for all Georgians relatively low. And as foreclosure notices increase and people abandoned their houses, other homeowners suffer.

This cycle is brutal and will cause consumers heartache and frustration until it fixes itself. When that will happen is anyone's guess. But in the meantime, homeowners on the edge of foreclosure or who already are in the process should consult with Atlanta Bankruptcy Lawyers as soon as possible. Quickly assessing your case will help you avoid more unnecessary pressure from creditors, lenders and collection agencies.

There are many options for people who have bad credit, mounting bills and a house you can't afford. It's possible that chapter 7 bankruptcy, which allows consumers to consolidate their debts and wipe them clean, could be your best option. But if you own large assets and want to keep them, such as a house, chapter 13 bankruptcy could be a better option. That allows consumers to work out a payment plan over three to five years in order to satisfy some of their outstanding debt.

Whatever the plan that's best for you, we'll find it. We work together with our clients to determine the best option. Take control of your finances and don't let creditors continue hounding you. Let us help you. Set up a free consultation today.

Continue reading "Foreclosure Notices Spike in Atlanta Metro Area, Leave Many Considering Bankruptcy " »