Atlanta Bankruptcy Attorney Blog

Even the most experienced business professionals are finding that securing a well-paying job is a challenge.

So college graduates, who have little experience, but a brand new degree and an excitement for getting into the workforce, are finding the current climate even more of a challenge.

Atlanta bankruptcy lawyers have followed the news as Georgia's economy lags and jobs are scarce. Foreclosures are up and people are finding it tough to get by.

That's why considering bankruptcy in Atlanta may be a good move for some people. It may not work for everyone, however. Consulting with an experienced lawyer is the right first step.

Knowing your financial situation, income level, current and expected debt and other issues is knowledge a lawyer should have after talking with the client about their financial situation. Sometimes, credit counseling or debt programs can help, but sometimes they can be a waste of time. For-profit programs can cost the consumer more money and do little to help.

And attempting to discharge debt on your own is a challenge. Credit card companies and other lenders rarely will sit down with a borrower and work with them.

According to bankruptcy laws, it takes a rare exception for college loans to be discharged. If a person can show that the loans are an "undue burden" or they are physically unable to work and earn a living, it's possible for the debts to be discharged.

In most cases, however, that's not going to happen. But that doesn't mean bankruptcy can't help. A person who files for bankruptcy can have the rest of their unsecured debts discharged, meaning credit card loans, medical bills and other types of debt can be eliminated.

This leaves the recent graduate able to make their loan payments. And, as the Associated Press reports, an underutilized federal program may also help.

The news story looks at the Income-Based Repayment program, which helps recent grads who have little or no income. Under the rules of the two-year-old program, people may be able to make few or no payments if they aren't earning a living.

Only 450,000 people are enrolled, though the government estimates 36 million people could qualify based on today's economy and the lack of available jobs.

The program allows people to pay back their debt over 25 years or 10 years if they are entering public service jobs. Eligibility is based on debt vs. income and the Department of Education has a calculator available on its web site.

But, there are drawbacks. First of all, only federal loans can be discharged, not loans from banks or Sallie Mae. Second, those enrolled must submit annual tax returns, so it's possible their payment plans will be recalculated, thus triggering higher payments.

There are higher interest rates for the longer payment program. The upside is that after the time period has elapsed, the remaining debt is discharged.

While President Barack Obama has said he wants to make the program more forgiving, the changes likely won't take place for several more years. It is a program that could work, depending on a person's situation. And it appears there's no reason a person couldn't enroll in that program and still use bankruptcy laws to their advantage.

Bankruptcy is guaranteed to discharge debts and help people get back on their feet, regardless of how much debt they have. There's a reason these laws were created to help consumers. They're needed and if you're struggling with debt they can benefit you.

Continue reading "Recent Grads Considering Atlanta Bankruptcy in Poor Economy" »

The Wall Street Journal recently published an article with tips on how to settle debts.

While the article has good information and ideas that could work for some people, only filing for bankruptcy in Atlanta will guarantee that debts be discharged forever.

Bankruptcy laws were created with the consumer in mind. Government officials realized that consumers could sometimes make big mistakes, but that they deserved a second chance. And given that companies and governments have a larger pool of money, the laws assume they can absorb a loss more than a family trying to put food on the table.

The same holds true today. Millions of people are forced to consider bankruptcy because of expensive medical bills, joblessness and predatory lending practices by credit card companies and banks who charge high interest rates and many fees to borrow money.

Atlanta bankruptcy lawyers have seen many people struggling with debt being saved by bankruptcy after they felt there was nowhere to turn. Carrying a lot of debt is a difficult habit to break, and creditors don't do a very good job of helping consumers who are trying to right the ship.

Here are some tips from the Wall Street Journal that suggest alternatives to bankruptcy. While the article does suggest bankruptcy is an option, this looks at ways to avoid bankruptcy. The article focuses on a debt settlement, which is easier said than done.

Before settling, look at other options
-Try to squeeze extra cash out of your budget
-Take a part-time job or try to sell things at auctions such as eBay
-Consult with a debt-management counselor

Build your case
-Gather financial documents to prove you can't afford payments
-Show that you've been laid off or endured medical bills
-Save the debt-settlement offers made by creditors for comparison

Strategize
-If creditors know you're willing to settle, go after the biggest fish in the pond first
-Focus on payments that are affordable
-Consider tax implications -- debt forgiven above $600 is reportable as income

What you shouldn't do
-Don't lie or leave out important information
-Don't avoid the problem; address it
-Don't skip payments on purpose
-Don't trust a debt-settlement scam artist

While these are all good tips, this assumes that creditors are willing to work with consumers. First of all, they can usually make more money by seeking wage garnishments or repossessing your things than they can in a debt settlement, especially if there are a dozen other lenders lined up with their palms open.

Filing for bankruptcy is the only thing that truly scares creditors and gets them to work with you. Going to a creditor on your own is a big job and should be left to experts. But filing for bankruptcy will provide instant relief rather than mere possible debt relief.

Even most credit counseling agencies will cost debtors something and companies that guarantee they will help for an up-front fee are usually scams. Bankruptcy immediately stops creditors from calling and gives you the breathing room to address your finances.

Continue reading "Debt Settlement May Be Ideal, But Difficult While Atlanta Bankruptcy Works" »

As the Atlanta Journal-Constitution reports, there is little good news to talk about in the housing market in the Atlanta metro area.

It reported that foreclosure notices in October were up from September. This is likely because banks are again ramping up foreclosure cases after taking nearly a year break when unethical and illegal banking procedures were discovered.

Atlanta's economy has faltered along with the rest of the nation. Many unemployed people are missing mortgage payments, sending scores of houses into foreclosure in Atlanta. But one guaranteed way to stop foreclosure is by considering bankruptcy in Atlanta.

Atlanta bankruptcy lawyers have seen how foreclosures have caused house values to plummet throughout the area. For people who are able to afford to stay in their houses and plan to stay forever, this isn't a problem because it's likely that years down the road the values will be restored to pre-recession levels.

But for people who want to move, they are stuck. For homeowners who have lost their jobs, they have no way of paying hundreds to thousands of dollars each month for a house that is worth less than the amount owed.

And when one payment is missed, the letters start arriving in the mailbox. Automated calls come once, twice or three times a day. Homeowners may get a call from a customer service representative asking if they want to make a payment.

After the second payment is missed, they tack on late fees, saying the homeowner owes them more money on top of the missed payments. Then, they start suggesting a loan modification program, which they rarely will agree to comply with.

In the Atlanta metro area, there were nearly 9,000 foreclosure notices in October, a jump from about 7,600 in September, the newspaper reports. While there have been month-to-month jumps, foreclosure notices appear to be on the rise.

After nearly a year of reviewing their practices, banks are again moving forward with foreclosure notices now that they believe they have cleared out their unethical robo-signing and fake document practices.

All of this can be avoided, however. By filing for bankruptcy, regardless of the stage of foreclosure, the foreclosure will stop. If you are one payment behind and don't believe you can make any further payments or if your house is close to being sold at auction, bankruptcy stops the process.

Once you enter bankruptcy, you likely will be able to stay in your home during the process and may be able to work out a way to stay in it even after the process is completed. For those who are struggling to make payments -- as many in the Atlanta area are -- bankruptcy may be a smart option.

If you are in this situation, set up a free consultation today to discuss your options. It may be the best choice you make and it could save your home.

Continue reading "Atlanta Forecloures on the Rise Again, But Bankruptcy Can Stop Them" »

A recent article in U.S. News & World report surmises that women should manage their own money, given that retirement isn't typically as cozy as their male counterparts.

The article points out that lower pay over their lifetime and a longer lifespan are reasons why women should take control of their finances in an effort to ensure they have enough money to survive after working age.

Combine a poor economy, high unemployment and mounting debt for some to be the incentives they need to get their financial house in order. For women struggling to pay back loans and get by on a lower salary, bankruptcy in Atlanta will eliminate the debt and allow them to move forward with a better plan to avoid staggering debt in the future.

Atlanta bankruptcy lawyers have seen many consumers who are widowed or who are divorced later in life and are left in shambles, with outstanding debts carrying them down. Rather than live by making minimum payments and being buried in loans and credit card bills, it can be refreshing to put the debt behind you and move on with life without dealing with the debt on a daily basis.

Filing for bankruptcy stops annoying automated calls from banks and constant letters from lenders complaining that payments are late. You don't have to deal with the embarrassment of having employers ask why they are being contacted about wage garnishments and other frustrations.

In the U.S. News & World report article, the author suggests that older women are in a tough spot financially. A Government Accountability Office report states that 12 percent of women over 65 are living in poverty, compared with 7 percent of men. For those who are divorced or widowed, the numbers are 21 and 15 percent, respectively.

Because of longer life, there are expensive expenses that crop up later in life, such as nursing homes or assisted living facilities that many women must consider if they are unable to take care of themselves. But here are some strategies to consider:

Save up:
Social Security, a pension or 401(k) plan and individual savings should be a three-pronged plan for storing up money to get you through the retirement years.

Start early:
Don't wait until the middle of your life to save. If you save starting in your 20s, you can store up a nice amount of money by the time you retire.

Manage your money well:
In marriages, finances are typically handled by one spouse, but since the woman is expected to live longer, it would be smart for her to hone her skills now.

Consider an IRA for the couple:
Jobless spouses can still contribute to a retirement account. In a divorce or death, the surviving spouse is typically entitled to a pension, but rules and circumstances can dictate that amount changes.

Overestimate how much you'll need to retire:
Between longer life and inflation, it's best to contribute more now and assume you'll need more money in the future to live comfortably.

Manage your own money:
Studies show that couples who split financial duties -- such as one handling day-to-day bills and the other looking at investment opportunities -- work out better than those who let one spouse do everything.

Continue reading "Women Challenged With Finances, Debt Should Consider Atlanta Bankruptcy" »

A recent article out of St. Louis looks at the pros, cons and differences in the two types of bankruptcies. Anyone filing for Chapter 7 bankruptcy in Atlanta or Chapter 13 bankruptcy in Atlanta should learn all they can about the process, then consult with an attorney.

As we previously reported on the Atlanta Bankruptcy Attorney Blog, more and more people are considering Chapter 13 bankruptcy, though it's easily the least popular of the two choices.

Chapter 13 bankruptcy, Atlanta bankruptcy lawyers will tell you, is designed for people who are earning a living or have some form of income, but who are still overwhelmed with debt. This form of bankruptcy is written for consumers who want to keep their house, cars and other assets and not risk them being liquidated to pay for the debt that is owed.

Under Chapter 13, a person can keep his or her assets, but must adhere to monthly payments, typically over a 3- to 5-year period. After those payments are made, which result in the consumer paying back less than what is owed, the remaining debt is set aside.

Chapter 7 bankruptcy, however, is designed for those without a steady income, but who have debt that they want to eliminate. This is the most popular and most commonly considered form of bankruptcy.

In Chaper 7, a consumer usually has very little income, typically from job loss, and has been hit hard with other misfortunes, such as huge medical bills and large loan fees.

In this form of bankruptcy, the debtor is allowed to discharge all unsecured debts, such as credit card bills and medical bills, without having to pay anything back. There are times when a person under Chapter 7 may have to give up some assets so they can be sold to pay back part of the debt, but that depends on the individual situation. In many cases, a person can keep his or her home, vehicles and other significant assets and still qualify for Chapter 7.

As the article lays out, there are considerations for both forms of bankruptcy. Qualifying for one type over the other depends on income levels, the type of debt, and how much is owed.

Declaring bankruptcy is an important decision for a consumer, but it is not one to take lightly. Whether you are considering Chapter 13 or Chapter 7, there are limits on how often a consumer may file for bankruptcy, so the choice must come after strong consideration of all the options.

That's why seeking out an experienced Chicago bankruptcy lawyer is important -- someone who has spent years helping people regain financial freedom.

Whether working or recently unemployed, debt can attack anybody. And rather than deal with creditors making constant harassing calls or dealing with possible wage garnishments, filing for bankruptcy will get creditors off your back and get you back on your feet.

Continue reading "Chapter 7 Bankruptcy in Atlanta vs. Chapter 13 Bankruptcy in Atlanta; What Works for You?" »

Many people are looking for jobs. As of October, the Atlanta Bankruptcy Attorney Blog reported, the jobless rate was 10.4 percent in September.

Unemployment is one of the top causes for bankruptcy in Atlanta, as people simply can't afford to make their monthly mortgage payment if they don't have a job. Sadly, banks are unwilling to help even the most downtrodden homeowners.

Instead, banks would rather let a house go into foreclosure in Atlanta rather than work with a homeowner through a loan modification or other option to keep a person in their house. Atlanta bankruptcy lawyers have seen many people desperate for help, looking for answers despite not knowing where to turn.

Those facing tough times should consider how filing for bankruptcy can help a person's financial outlook and, in turn, their job prospects. No one would want to find a job after months of searching only to have their employer begin getting calls from creditors or seeking to garnish wages.

That can be embarrassing and get a person out onto the wrong foot with a new job. That's not the best first impression to make. In other cases, an employer may check a prosepective employee's credit report -- where bad debt can be a red flag. If you are seeking a job while dealing with poor credit -- or have outstanding loans that you are behind on -- filing for bankruptcy could put you in a good position moving forward toward a brighter financial future.

Eliminating those debts when you are unemployed can allow you to start life anew when you settle down at a new job. If those debts are still active when you get a new job, that would allow creditors to begin the pursuit all over again. Bankruptcy in Atlanta can end the frustration.

And, to assist with the job search, here are some tips to staying relevant in a tough job economy, courtesy of kiplinger.com:

What are your career goals?
Whether you're a recent graduate or long-time worker, you should make sure you have a clear goal in mind for your career. You may be asked by potential employers, so make sure you have it straight yourself. This could include seeking an advanced degree.

Be seen online
Whether creating a website or social media account, making sure you are up on current trends and stay connected with resume web sites.

Look at where you have a chance to get a job
Survey the landscape and try to get an idea of what the current market is at least once a year. Keep up on local business news and try to identify where you think you fit.

Identify strengths
Know your value. Whether changing companies or staying where you are -- or if you are looking to break into a new field -- know what the typical salary range is.

Learn a new skill set
Being a team-player with a range of abilities is attractive to employers. Having one skill in an ever-changing world may not get it done. Do a web seminar or attend a class to get some new ideas and meet some people.

Network
The old adage it's not what you know it's who you know is as important as ever these days. With so many people seeking jobs, it's tough to stand out. Having an in is a big step in that direction.

Continue reading "Atlanta Bankruptcy Can Help If You're a Job Seeker" »

Even before Halloween, there were Thanksgiving decorations and now there are Christmas and December holiday sales being pitched, some seven weeks out.

It's shopping season.

Sadly, however, all this spending will thrust many Americans into debt in Atlanta because of the predatory actions of credit card companies.

Atlanta bankruptcy lawyers know that high spending, holiday shopping and credit cards are a bad combination. Consumers believe they can simply pay the debt off at a later date.

But what happens if they lose their job at the beginning of January? This economy isn't exactly stable. People are losing their houses, their jobs and their income. There's always the possibility of a major medical issue or high hospital bills.

These are all variables that consumers must consider when they plan out their shopping this winter. And stores are already gearing up in anticipation of the holiday season.

CNNMoney is reporting that Wal-Mart is planning on leaking its own Black Friday deals to shoppers who sign up on their Facebook page or on the web site. The giant retailer typically provides its Black Friday deals to shoppers the week of Thanksgiving, but is starting even earlier this year.

Not to be outdone, electronics retailer Best Buy has announced it will open at midnight on Thanksgiving to ensure it capitalizes on the shopping madness. Some stores will show movies starting at 9 p.m. Thanksgiving to make sure they get as much business as possible.

CNNMoney reports that the store will give free shipping on purchases directly from its website and will give online shoppers a chance to win gift cards throughout the day through its social media pages.

And while October retail numbers were disappointing in the industry, the National Retail Federation is estimating that sales for 2011 will reach $465.6 billion, a 2.8 percent increase from 2010, ABC News reports. That signals a big holiday spending spree by Americans.

All this spending may be great for the economy, but it can be treacherous for consumers. By spending more than they can afford, consumers put themselves in a tough position.

For one, it adds to their credit card debt. But more importantly, it puts credit card companies in the driver's seat. When they know you have thousands or tens of thousands of dollars on your credit cards, they control you. They can kick in hidden fees, hike interest rates and make life difficult.

When a consumer stops paying on their card, the credit card companies can threaten wage garnishments, constantly call and ask for payments, send letters, e-mails and even contact employers or associates. Being buried in debt over holiday spending is not worth it.

Bankruptcy can clear these problems away, however. By filing for bankruptcy, the creditor harassment ends. They aren't allowed to contact you and their threats must cease.

For a consumer who has been trapped by these predatory practices, bankruptcy in Atlanta will allow them to discharge their debts and move on with life without the burden of owing that much money. Consumers can then put together a plan to ensure this doesn't happen again in the future.

Continue reading "Holiday Spending Will Spur Credit Card Debt, Bankruptcy in Chicago" »

Online scams are everywhere these days:

• You get an e-mail saying you just won $30 million in the Nigerian lottery


• A person who takes your credit card to pay for something steals the information


• Your phone gets hacked when you download an application that's actually a virus

Maybe the Nigerian lottery is easy to spot, but the others may not be. Consumers can end up being taken for thousands of dollars if they aren't careful.

Money recovery from companies is a difficult process and the delay can cause you financial problems. Cybercriminals are out there in full force. They are taking advantage of the increasing dependence on the Internet as an easy way to make millions. Not only do consumers get penalized, but companies are being hit hard too -- to the tune of billions of dollars each year.

The popularity in online crime has manifested itself in more people considering bankruptcy in Atlanta and looking for an honest and experienced Atlanta bankruptcy lawyer in whom they can trust.

A recent Daily Finance article looks at how to avoid becoming the victim of financial fraud. The story looks at the plight of an 84-year-old woman who was called by a man claiming to be her grandson.

He said he was with friends in Canada and hit a telephone pole with his car and needed $5,000. The woman said his voice sounded like it could be her grandson. And she lost contact with him after he served in Iraq, so she didn't have his phone number. He told the woman she could wire money from a Wal-Mart to him. Of course he needed it right away. She obliged. When she got a second call, saying the crash caused damage to a business, she got suspicious and realized it was a fraud.

It's also costly for businesses. For instance, in 2009, MoneyGram International Inc. agreed to pay $18 million to settle claims by the federal government that it had been used by fraudulent telemarketers to the tune of tens of millions of dollars.

Here are some tips to help ensure you don't get ripped off:

• Do your homework: Don't just fork over the money


• Make sure you are working with a real lawyer, not someone who says he or she is


• Protect your personal information by limiting how much you give out, especially your date of birth and Social Security number


• If you are victimized, file a complaint

To be honest, bankruptcy won't work for everyone. There are situations in which it isn't advisable. But for many people who have seen their credit scores plummet, or lost their job or life savings, bankruptcy in Atlanta could be the way to go.

When people are stuck in debt, there's simply no wiggle room. Filing for bankruptcy in the Atlanta area could be the answer. Getting all that debt off a person's plate allows him or her to break free and look ahead to a brighter to the future.

Continue reading "Cost of Cybercrime Fraud Could Lead to Bankruptcy in Atlanta " »