Atlanta Bankruptcy Attorney Blog

The number of underwater mortgages is finally going down - but those of us facing foreclosure aren't out of the woods yet.

In a rare bit of good housing news, Zillow.com recently announced that the amount of homeowners with underwater mortgages - in other words, those of us with a home worth less than what we owe on our mortgage - decreased from 23 percent to 21 percent in the last quarter. Fewer homeowners with negative equity means we might finally start seeing less foreclosures in coming months, according to Atlanta bankruptcy attorneys.

On the other hand, that doesn't do much to help folks currently - or soon to be - at risk of foreclosure.

Continue reading "Filing for Chapter 13 Bankruptcy Can Stop or Prevent Foreclosure for Atlanta Homeowners" »

When you think of a debt relief company, you usually think of a company that, you know, relieves debt. But believe it or not, you might be wrong.

We've all heard the claims by debt relief firms, be it on the radio, TV or our computer. They can negotiate with creditors on your behalf, lowering -- or eliminating -- the amount you owe. And they can do it all for a low monthly rate. And virtually overnight. For the many folks $10,000 or more in debt, it sounds like a miracle.

Unfortunately, it is like a miracle - in that it very rarely happens.

Continue reading "Bankruptcy Can Do What Atlanta Debt Relief Companies Can't" »

Atlanta homeowners who have been underwater in their mortgage might have just been thrown a lifesaver.

This February, housing prices increased for the first time since the end of 2006 - almost four years ago, according to The Standard & Poor's/Case-Shiller housing price index. With values finally on the rise, homeowners can breathe a sigh of relief knowing that they'll start rebuilding equity. That's the good news. The not-so-good news? No one knows how long prices will rise - or by how much.

But in the end, that doesn't really matter. What matters is that you stay in your house so you can take advantage of future home values. That means that if you're at risk of foreclosure, it's time to take preventative action.

Continue reading "Rising Home Prices Means Good News for Atlanta Homeowners" »

At first glance, it looks like a good deal: Buy a new house and Uncle Sam gives you $6,500 back. But there's a pretty big catch, according to Atlanta bankruptcy attorneys.

When the federal government agreed to extend a tax credit originally intended for new homebuyers to existing homebuyers, they hoped it would encourage folks to upgrade to bigger houses - and that, in turn, would stimulate the real estate market.

Yet the market has stayed flat. Why? Because although we'd all love to have bigger, better houses, most of us are struggling to hold on to the ones we already have. Forget a new house - what we need is Chapter 13 bankruptcy.

Continue reading "Homebuyer Tax Credit Might Not Be Enough for Chicago Homeowners to Stop Foreclosure" »

What if you had two choices: Pay the mortgage each month, or pay your credit card bill?

In the past, choosing was a no-brainer - put the money towards the roof over your head. But increasingly, Americans are starting to prioritize credit cards, meaning the mortgage gets left by the wayside, according to Atlanta bankruptcy attorneys.

So what's changed? To start, the housing market. With one in every four homeowners underwater on their mortgage - and thus having no equity in their home - paying off a home loan can feel like throwing money away. On the other hand, paying the credit card bill allows us to keep using plastic to cover food, gas and clothes even when we aren't bringing home enough bacon to afford them.

But even though our new priorities make sense under the circumstances, it doesn't mean they're the best - or only - choice.

Continue reading "Atlanta Bankruptcy Attorneys See More Homeowners Default on House Than On Credit Card" »

When we want to know if that sweater comes in our size, we ask a sales clerk. When we're lost, we (hopefully) ask for directions. Yet when it comes to getting help with our debt, all of a sudden it's mums the word, say Atlanta bankruptcy attorneys.

Even though the vast majority of Americans are in debt, the d-word still manages to be taboo. Sometimes it's because we're in denial and not ready to recognize that a spending problem is jeopardizing our financial future. Other times, it's embarrassment. We suffer our financial troubles in silence because we don't want to admit our mistakes. Either way, the result is the same. We don't ask for help, and we don't get it.

But that stubbornness - not our debt - is our biggest mistake. Two heads are better than one, as they say. You might not be able to see a way out of your debt, but an outsider, like a close friend or relative - or even better, a financial expert - might be able to spot what you can't.

Continue reading "Atlanta Bankruptcy Attorneys Say Asking For Advice Can Be Fastest Way Out of Debt" »

Contrary to homeowner hopes, Uncle Sam's $75 billion mortgage modification program may be causing more bad than good.

Created early last year, the program was supposed to encourage banks to modify loans of the millions of Americans facing foreclosure. Unfortunately, it's managed to permanently modify just 35,000 - a drop in a rather large bucket, when you consider that 15 million U.S. homeowners are underwater, meaning they owe more on their loan than their house is worth. And of the homeowners that did get help, many went into foreclosure anyway since the program only required banks to lower mortgage payments - not to restore any equity.

But the biggest problem isn't that the program is failing - it's that it's given folks a false sense of security. Many homeowners held out hope that the program would save their home, so they didn't take preventative measures that could have stopped foreclosure, such as Chapter 13 bankruptcy. Fortunately, there may still be time, according to Atlanta bankruptcy attorneys.

Continue reading "Atlanta Bankruptcy Attorneys Warn That Government Mortgage Program Is Increasing Foreclosures" »

Citibank is giving a few thousand Americans the ultimate Christmas gift this year. Problem is, there isn't enough to go around.

The megabank recently announced it would put foreclosures and evictions on hold for some 4,000 homeowners this holiday, according to MSNBC.com. The break applies to homeowners with Citibank-owned loans and lasts through the middle of January.

It's intended to reduce stress during this already crazy time of year, said a company spokesman. And I'm sure it will for those 4,000 people, temporarily anyway. But what about the millions of other Americans that are on the brink of losing their homes?

Continue reading "Bank Lets Some Homeowners Stop Foreclosure This Christmas" »

'Tis the season for Christmas cards and phone calls from family and friends, but some of us are receiving more hostile greetings over the phone and in the mail this season - from bill collectors.

Unlike most folks, bill collectors don't like to give breaks over the holidays. When you're late on your debt payments, it's their job to bully you into coughing up the cash. That means calls at home and work and letters in the mailbox - even after you've explained the circumstances that are currently preventing you from paying.

But though it might feel like they've got you surrounded with no way out, you still have rights. And with help from a professional bankruptcy attorney, you might be able to silence those bill collectors for good.

Continue reading "Put a Stop to Harassing Creditors With Bankruptcy" »

If you're facing foreclosure, you're officially running out of excuses. But that's good, right?

Just this week, Congress decided to extend the tax credit for new homebuyers beyond its original Nov. 30 deadline. That means you could be eligible for $8,000 back on your taxes when you purchase a property. Better yet, the government has taken note of the thousands facing foreclosure by expanding the initiative to include people who have already owned their houses for five years or more - if that's you, there might be a $6,500 tax break in your future.

Along with the tax credits, Uncle Sam also agreed to extend unemployment benefits for 14 weeks (even longer in states where the unemployment rate has reached 8.5% or more). It's not ideal, but it's a start.

Financially, we've come a long way since the so-called "great recession" began -- and Americans might be more aware of opportunities for financial freedom than ever before.

Continue reading "New Credits, Extensions Available for Homebuyers and Unemployed" »

The most popular - yet elusive - Christmas gift this year is too big to wrap. In recent months, potential homebuyers have been scrambling to take advantage of the temporary homebuyer tax credit of up to $8,000 before it expires on Nov. 30.

But you don't have to rush into buying a house before you're ready (if you'll recall, it was too much debt that got us into this mess - and a house is about the biggest, albeit most important, debt you can take on). Nor do you have to feel that you missed the boat if your financial situation won't allow you to plunk down a down payment right now. Here's why.

First, Congress is currently debating whether to extend the credit through March 2010, then phase it out slowly. Second, mortgage rates are at record lows and affordable homes are at record highs. Third - and maybe most important - there's another way to save big bucks on that down payment. And you don't have to wait for government approval to get it.

Continue reading "Temporary Tax Credit Isn't the Only Way to Save on Your Mortgage" »

The bad news: more consumers are filing for bankruptcy. The good news? More consumers are filing for bankruptcy.

Personal bankruptcy rates were 41 percent higher this September than they were a year ago, according to the American Bankruptcy Institute. Now, a surge in bankruptcy filings certainly isn't something to jump up and down about because it indicates the economy isn't doing so hot. But we all knew that already. Yes, unemployment is approaching 10 percent. Millions of homeowners - some who have already had their home loans modified - are facing foreclosure. What's new?

So let's focus on the good news. More folks turning to bankruptcy means more folks getting the debt relief they so desperately need.

In the past, people have notoriously avoided bankruptcy at all costs - including the loss of their home - because of a myth that bankruptcy is a last-ditch effort that does as much bad as it does good by damaging credit and your good name. But if there's a silver lining to this recession, it's that people are starting to realize what a useful - and effective - tool bankruptcy can be.

Continue reading "Bankruptcies Increase as Americans Seek Debt Relief" »

If you knew of a safe, reliable method to achieve financial independence, you wouldn't hesitate to use it, right? I didn't think so. Yet potentially millions of Americans have access to a surefire way to free themselves from debt - and they refuse to consider it. I'm referring to bankruptcy.

Bankruptcy is your right as a U.S. citizen. It legally stops creditor actions like foreclosure and repossession. It offers an affordable method of paying off non-mortgage obligations like credit card, medical and IRS debts while freeing up money to pay for your other bills, including your mortgage. What's not to like?

However, many folks treat bankruptcy as a last resort rather than a valid option, worrying that it will damage their credit, prove too difficult to navigate or be viewed as taking the easy way out.

But if you're drowning in debt, it's time to face the facts.

Continue reading "When to Consider Bankruptcy for Debt Relief" »

We've all heard the saying when life gives you lemons, make lemonade. Well, how about this one: when credit card companies give you higher minimum payments, make the decision to reduce debt for good and find a financially-secure future.

OK, so it doesn't quite have the same ring to it as the old lemonade adage. But it's the same idea. When life throws you a curveball - something seemingly negative - find out how to use it to your advantage.

Credit card companies have been raising minimum payments to help defray the costs of increasing defaults and to offset new regulations. At first glance, a higher minimum seems like bad news. But it's really not. See, credit card minimums have recently averaged about 2%. That means that on a $1,000 credit card bill, you'd only have to pay $20. Not that painful, right? Think again. With an average APR of 15-30%, you're not even covering interest. So not only are you not paying off your principal - the amount of your original purchases - but your balance is actually growing, even if you stop adding to it.

Continue reading "Atlanta Bankruptcy Lawyers See Silver Lining in Rising Minimum Payments" »

There's a longstanding myth that bankruptcy is for deadbeats. But the truth is, most folks who file for bankruptcy have jobs or are actively looking for work. Most can pay some bills. Most are intelligent, responsible, God-fearing citizens. They just need a little help.

If that's not enough to convince you that bankruptcy is more of a financial tool than a form of surrender, how about these famous names - Donald Trump, Walt Disney, and Abraham Lincoln. Each one found success after filing for bankruptcy.

Even baseball teams are not immune. News just broke that the Chicago Cubs are considering a bankruptcy filing. No, the Cubs aren't broke. They still draw 3 million fans to their home games annually. But their owner wants to make sure the team is free from liabilities so a potential buyer won't have to worry about fighting off creditors in the future.

Bankruptcy doesn't have to be a last-ditch effort. It can be a smart strategy.

Continue reading "Famous Folks File for Bankruptcy, Too" »