Atlanta Bankruptcy Attorney Blog

It's another top ranking for Georgia that residents wish they didn't have -- most foreclosures. According to The Atlanta Journal-Constitution, the state ranked fourth nationally in foreclosure rates in August.

Stopping foreclosure in Atlanta can be a complex process for those who attempt to fight the banks in the court system. A less complex process is filing for bankruptcy in Atlanta, which automatically stops foreclosure.

An experienced Atlanta Bankruptcy Lawyer will advise you that bankruptcy can be alleviating upon completion, compared to the pre-bankruptcy stage where bills are piling up, payments are falling behind and stress is mounting.

According to the foreclosure tracking company RealtyTrac, there were 11,743 properties statewide in August that had foreclosure filings. That number includes scheduled auctions, bank repossessions and default notices. It's a 2 percent increase from July, but actually down 28 percent from August 2010. Yet, the rate ranks Georgia fourth in the nation.

In metro Atlanta, foreclosure notices rose 16 percent in August from July, but the count was partially based on a five-week period of notices compared to a normal four-week period. According to RealtyTrac, only Nevada, California and Arizona had more foreclosures. Idaho, Florida, Illinois, Colorado and Utah had slightly lower rates.

Experts have believed for some time that banks and lending institutions have been holding back on their foreclosure filings after attorneys pointed out all the problems banks were having with robo-signed documents, false paperwork and other issues.

Analysts now believe that the increase in the Atlanta area in foreclosure filings may be a result of banks beginning to file foreclosures on houses that have been behind in payments for months. Most banks held back on their filings beginning last fall after saying they would be reviewing policies and procedures.

It's possible that more filings will be coming as banks figure out how to file foreclosures without incorrect paperwork and violating homeowners' rights. While this is certainly possible, it's foolish to consider what may happen in the future. You know your situation and you know whether it's going to get better and improve with time or if acting now is the smart move.

A big benefit of bankruptcy in Atlanta for homeowners whose houses are in foreclosure or on the brink of foreclosure is that filing immediately stops the foreclosure process. A homeowner could be one monthly mortgage payment behind or many months behind and filing for bankruptcy stops the bank from trying to take away a person's home.

Most homeowners can continue to stay in their homes while the bankruptcy process is ongoing and may be able to stay in their homes once the process is complete. The bankruptcy procedure can be complex and difficult to navigate, so consult with an experienced Atlanta Bankruptcy Lawyer who will be able to guide you through this decision in order to give you the financial freedom in the future that you don't have right now.

Continue reading "Georgia Among Top 5 in Nation For August Foreclosures" »

Hurricane Irene stormed up the Eastern seaboard as a low-category hurricane and yet became one of the most destructive storms in recent history after causing flash flooding, downing trees and power lines, and damaging homes in many states.

It's usually not until a major natural disaster that we consider how powerful Mother Nature is and how devastating the damage left behind can be. Most Georgians remember the tornadoes that tore through Alabama and parts of Georgia earlier this year. Even premier insurance coverage doesn't always cover all losses, so people can be left dealing with a financial disaster.

It's events like these that can radically alter a person's life. Having a home severely flooded or damaged can leave bills mounting, even after insurance coverage. These unexpected bills on top of all other regular bills, can leave a person in ruins. Bankruptcy protection in Atlanta, however, can help a person turn things around.

If the debt that is mounting is so unbearable that a person must choose between which bill to pay and how they're going to buy groceries, it may be time to consult with an experienced Atlanta Bankruptcy Lawyer to discuss your options and determine how best to move forward with life.

A recent Forbes.com article discusses why you may not be prepared for the next "Hurricane Irene" of your life. Earthquakes and hurricanes have been common in the news in the United States in recent weeks and this may be a good time to figure out how to avoid financial disaster after a natural disaster.

Earthquake coverage: This may not just apply to Californians. As Virginians recently saw, earthquakes can happen anywhere. Most homeowner's policies don't include earthquake damage, so it will require a separate policy. Areas not usually affected by quakes usually have smaller premiums.

Hurricane coverage: Check to see if your policy covers hurricanes because some companies are dropping coverage. And make sure it covers more than wind damage. Water and flooding can be equally damaging or even more of a disaster. Post-storm mold can be very expensive to remove.

Is your house under-insured?: As many as 64 percent of American homes are underinsured by about 27 percent. Over-the-phone salespeople are usually poorly trained and don't offer enough coverage. You may have to pay out-of-pocket in a disaster.

Are your "valuables" really that valuable?: Record everything you own and store the video online so you can access it at any time. You may need it to show an insurance agent to prove the value. Also, make sure the policy covers the "replacement value" and not necessarily the "actual cash value."

How to choose a policy: Specialty insurance can be expensive, so try to bundle it to get a discount. If you have special memberships, a home security system or other things that would be attractive to insurers, that may score some extra discounts, too.

Continue reading "Natural Disasters in Georgia Can Toss Consumers into Debt, Bankruptcy" »

Foreclosures make up nearly 60 percent of all home sales in one suburban Atlanta county, just another sign that the local economy is frustratingly slow to recover from the Great Recession.

You can find signs of a foreclosure in just about every neighborhood -- high-grown grass or a sign in the front yard -- as job loss or mounting debt has made keeping up with monthly mortgage payments nearly impossible for many families.

But one option that may help is bankruptcy in Atlanta. There are certain standards that must be met, but after qualifying, a person can have debts discharged and still keep important assets, such as a house or car. And filing for bankruptcy will immediately stop a foreclosure. Whether a homeowner has fallen one payment behind or is waiting for their house to be sold by the bank, bankruptcy stops the process. Chapter 13 is available to those who don't qualify for Chapter 7.

An experienced Atlanta Bankruptcy Lawyer can help consumers win a fresh start.

The foreclosure problem is even more evident in Douglas County than elsewhere. Times-georgian.com reports that 58 percent of all home sales in that county were foreclosures during the second quarter.

Of the 280 sales between April and June, the average price was $89,504, while non-foreclosure homes were sold at about $100,155, the web site reports. It is clearly a buyer's market, which also hurts the homeowners whose houses aren't in foreclosure.

The numbers in Douglas County outstrip statewide numbers. In the same time period, 38 percent of all sales were houses that were in foreclosure. And Georgia had the fifth highest percentage of foreclosure sales nationwide. Nationwide, the number is 31 percent.

There are two forms of bankruptcy that may be able to help a homeowner. For many, they are making payments on a house, but have lost a job and now have bills piling up. They may have a student loan they must make payments on, on top of monthly bills, credit card bills and other debts and all of a sudden they have no source of income.

For those people, Chapter 7 bankruptcy in Atlanta is probably the most beneficial. Under this law, consumers can have most or all of their debt discharged and can even keep assets in which they have little equity.

Another option is Chapter 13 bankruptcy in Georgia. This is the less frequently used option, but it allows consumers to make monthly payments for a time period -- usually 3 to 5 years -- and pay back some of the debt. After making those payments, the consumer can seek to have remaining debt discharged. That chapter is typically reserved for someone who has a lot of equity in their possessions or who has high income.

Both options are better than creditors hounding you for payments and attempting to garnish your wages, if you're working. Lenders can be brutal in collecting their money and can make life difficult. An experienced bankruptcy lawyer can stop them in their tracks and help you earn a fresh start.

Continue reading "Atlanta Bankruptcy Protects from Foreclosure, Which Make up Majority of Home Sales" »

So far this year, bankruptcies have fallen about 8 percent nationwide, but experts don't believe this is cause for celebration, The Atlanta Journal-Constitution reports.

Filing for Chapter 7 bankruptcy in Atlanta can be a difficult decision, but clients of Atlanta Bankruptcy Lawyers have found that going through with the process brings with it a sense of freedom from bills, creditors calling and the frustration of living with debt.

For many people, they won't even consider filing for bankruptcy and instead choose to open up another line of credit or get another credit card that puts them even deeper into debt. The interest rate is probably in the high 20s and even making one late payment is disastrous. To those people, Atlanta Bankruptcy Attorneys would encourage setting up a free consultation just to look at the options and see what can be done to help the situation.

According to the newspaper article, some people consider a drop in bankruptcy filings a positive sign that with a national credit downgrade, labor and housing woes, an up-and-down stock market and other frustrations, consumers' credit is actually doing better.

Not so, however, experts say. Many believe that bankruptcies may be down simply because people can't afford the filing fee and because creditors are appling less pressure. The article suggests that there are many people on the brink of bankruptcy, but are hoping that an economic uptick can keep them from filing. If the economy doesn't turn quickly, those people may be forced to file.

Georgia State University law professor Jack Williams told the newspaper that there's no proof that bankruptcy filings have dropped because the individual consumer is in better shape financially.

"The economy hasn't turned," he said, "and, if anything, it may be going back down."

Filing for bankruptcy can cost a few thousand dollars. Some believe that when more people are employed, they will be able to afford to file for bankruptcy protection.

Some people may make too much money to qualify for Chapter 7 bankruptcy, yet can't afford payments under Chapter 13 bankruptcy in Atlanta. These people may be "stuck," the article suggests.

Under Chapter 7 bankruptcy, a person's debts are discharged after going through the process of filing and working with court officials. Chapter 13 bankruptcy, however, allows a person to keep larger assets, such as a house, and make payments to lenders. Consulting a bankruptcy attorney in Atlanta will permit you to make an informed decision about how to best handle your unique financial situation.

Bankruptcy is a complex process and there are many variables that can affect the outcome. While it may be true that people are having a tough time affording the filing fee and other associated fees, others recognize the benefits and have put together enough money to enjoy the benefits of bankruptcy.

Setting up a free consultation to discuss your situation is the first step. It's possible there are alternatives to bankruptcy that can help ease the situation of dealing with the burden of debt.

Continue reading "Atlanta Bankruptcies Dip, But That May Be Bad News" »