Atlanta Bankruptcy Attorney Blog

In a strange, but uplifting turn of events, law enforcement and bank-hired movers ordered to evict in Atlanta recently walked away from a home after seeing that the owner was an elderly 103-year-old woman, The Atlanta Journal-Constitution reports.

Many Americans haven't seen the same type of kindness displayed to them when people come knocking on their door and threaten to take their house and kick them to the curb. Millions of Americans have endured a foreclosure and while many have simply walked away and found a place to live, others have met the problem head-on with people changing locks or threatening eviction with law enforcement in tow.

There are millions of houses nationwide that are under water, meaning the owners are paying more in monthly mortgage payments than the house is worth. And, yet, people are trying to stay in their homes.

What some people don't realize is that filing for Chapter 13 bankruptcy in Atlanta can help people stay in their homes and significantly improve their debt situation.

If consumers have fallen into debt and are having difficulty making house payments, they could be best served by talking with a skilled Atlanta bankruptcy lawyer, who can advise them on the best course of action.

As our lawyers have reported recently, the popularity of Chapter 13 bankruptcy has increased lately. The "wage earners bankruptcy," Chapter 13 allows people to keep major assets, such as a house, vehicles and other things and set up a payment plan over 3 to 5 years. If those payments are made, on time, throughout that time period, the remaining debt is cleared. And filing for bankruptcy immediately stops foreclosure.

This is different than Chapter 7 bankruptcy, which is the more popular version of the two. Most people relate to this version, where people, mainly who have no income and few assets, are able to lose the debt without losing any assets. In some cases, valuables may be liquidated to pay back debt, but there are exemptions.

In this woman's case, she and her 83-year-old daughter have lived at the home for decades. Court records show, the newspaper reports, that in 2002, the woman's grandson got a second mortgage on the house from Deutsche Bank National Trust. The loan is now being administered by Chase Bank.

Deutsche foreclosed on the house in 2009 and the women had remained in the home while he fought foreclosure. Chase recently ordered the eviction, despite pressure from local politicians and community activists.

When police and movers showed up to evict, they walked away after seeing the woman. The stress caused her daughter to be sent to the hospital. The bank said in a statement that they would work out an agreement to allow the women to stay in their home.

It would be naive to believe this situation happens often. While there have been occasional examples of people getting last-ditch agreements, most often the banks aren't generous and they take people's homes. The better strategy is to have a plan. Speak with an Atlanta bankruptcy lawyer and see how bankruptcy can help you avoid foreclosure.

Continue reading "Cops, Movers Walk Away, Leave 103-Year-Old Atlanta Woman's House Despite Foreclosure Eviction Notice" »

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?" »

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" »

A recent report by The New York Times states that the percentage of homeowners has reached 1998 levels and could continue declining to levels not seen for 30 years as people are trapped in upside down mortgages and dealing with foreclosures in Atlanta and elsewhere.

Atlanta Bankruptcy Attorneys have seen the frustration experienced by homeowners dealing with mounting debt or uncooperative banks. We know that there are always bills to pay and with unexpected medical bills, the loss of a job or increasing credit card debt, it's not always easy. That's why we are here to guide people into making the best decisions for their financial futures.

The New York Times article reports that given the Great Recession and the collapse of the nation's housing market, the percentage of homeowners has dropped to a low level of 66.4 percent. That's down from 69.2 percent in 2004. Analysts believe the levels could continue declining.

Many people believe the drop in home ownership is simply a matter of the economy -- lost jobs, more debt and an increased number of foreclosures. But because of the recession and the problems people are having with their homes, many Americans don't see owning a home as part of the American Dream anymore. Fears of having their house fall into foreclosure because of a market collapse has caused many people to become satisfied with renting.

Bloomberg reports that the S&P/Case-Shiller index of property values in 20 cities fell 3.6 percent from March 2010, the biggest year-over-year decline since November 2009. The index is the lowest it has been since March 2003, which analysts believe means prices will continue to steadily drop.

Atlanta Bankruptcy Attorneys have seen the many people who are struggling to make payments and wished they had never bought a house in the first place. But there are also many others who are frustrated by the housing market collapse and who want to stay in their house, though it has become increasingly difficult to make payments. Still, they find banks are often unwilling to modify a loan in Atlanta.

So for many, the answer is to file Chapter 13 bankruptcy in Atlanta. Chapter 13 bankruptcy is different than Chapter 7 bankruptcy, which people may be more familiar with. Chapter 13 allows people to stay in their homes and propose a payment plan over a 3- to 5-year period to satisfy their debts. It may also pressure banks into making a modification.

While many people may think bankruptcy is embarrassing, they shouldn't. Millions of people have used these laws to protect them and to recover from debt caused by credit cards, large medical bills or unemployment.

According to March statistics by the United States Bankruptcy Court, nationwide Chapter 13 filings rose 5 percent to 438,788 from the 415,966 bankruptcies filed in the 12-month period ending March 31, 2010. The number of Chapter 13 filings came in second only to Chapter 7 filings.

Continue reading "Georgians' Dream of Owning a Home Dropping; Bankruptcy and Foreclosure Defense are Options" »

The latest statistics show the number of bankruptcy filings fell 6 percent in the first quarter of the year, although they still remain at record levels, CNN reported.

Our Atlanta bankruptcy lawyers continue to help consumers dealing with bad mortgage debt, credit card debt and medical bills. Nationwide, more than 340,000 people filed for bankruptcy in the United States during the first three months of the year. While that puts the country on pace for fewer filings than the 1.6 million last year, the numbers remain significantly higher than the approximately 1 million consumers a year who sought bankruptcy protection before the economic downturn.

The American Bankruptcy Institute reports 19,588 consumers filed for bankruptcy protection in Georgia during the fourth quarter of 2010. That's down from the 20,694 who filed during the third quarter of the year. But it's still twice the average of 10,000 per quarter filed before the recession began.

Any stigma associated with filing bankruptcy largely diminished as millions sought protection during the Great Recession. The protections afforded by Chapter 13 and Chapter 7 bankruptcy have evolved over time.

As a Live Science article reported when General Motors filed for bankruptcy protection, the head of the company could have been executed in ancient Rome. In England, during the dark ages, consumers who couldn't pay their bills were thrown into a debtor's dungeon. While bankruptcy laws were originally meant to get a creditor back what is owed, they have evolved over time to offer substantial protections to consumers.

Even the Bible offered advice, urging forgiveness of a neighbor's debts every seven years. The term "bankruptcy" is Latin for broken bench, and comes from the old-world marketplace where an indebted merchant could have his bench broken in two, giving him nowhere to sell his wares.

In ancient Greece, debtors could be forced into slavery for their creditors. Modern law stems from 16th Century England, where bankruptcy proceedings were initiated by a creditor seeking to recoup his losses. It wasn't until the financially difficult years following the Civil War that modern laws began to favor the debtor.

Continue reading "Atlanta Residents Continue to Seek Bankruptcy Protection in Record Numbers" »

The first thing consumers want to know when considering bankruptcy is, "How will filing affect my credit score?" Yet maybe what we should be asking is, "How will not filing affect my credit score?" Especially when we're at risk for foreclosure.

It's no news that bankruptcy ends up on your credit report, but so does foreclosure. And while bankruptcy can pave the way for you to begin repairing your credit (in fact, Atlanta bankruptcy attorneys report that many clients receive offers for credit cards or loans soon after filing) turning your home over to the bank doesn't quite have the same effect.

Continue reading "Effect of Foreclosure on Credit Scores of Atlanta Homeowners" »

It looks like Uncle Sam might be learning from his mistakes when it comes to helping struggling homeowners, say Atlanta bankruptcy attorneys.

With the Home Affordable Modification Plan enacted during the recession a seemingly multi-billion dollar flop, the federal government may be turning to a method that's actually been proven to work - bankruptcy. In a bill proposed by Sen. Sheldon Whitehouse, bankruptcy is being explored as an alternative for homeowners in need of modified mortgage terms. And with U.S. foreclosures expected to surpass 12 million next year, it couldn't come too soon.

Continue reading "Senator Suggests Bankruptcy As A Better Alternative To Mortgage Modification" »

Why should homeowners in Atlanta care about a foreclosure in Massachusetts?

Because a recent court ruling there could have a drastic impact on foreclosures in the future, affecting the entire U.S. banking industry - and millions of Americans currently at risk of losing their homes, say Atlanta bankruptcy attorneys. Last week the highest court in Massachusetts reversed foreclosures on two residences because the banks could not prove they held the mortgages at the time they seized the homes. Experts say the decision could set a precedence for increased consumer protection.

But that doesn't necessarily spell good news for homeowners facing foreclosure.

Continue reading "Court Ruling Could Affect Foreclosure Process for Atlanta Homeowners" »

Freddie Mac is feeling more Santa than Scrooge this season - if for only a brief period of time.

For the third year in a row, the government-backed mortgage giant plans to stop foreclosure evictions between Dec. 20 and Jan. 4. It's good news for seriously delinquent homeowners who might have otherwise lost the roof over their head during the holiday. Unfortunately, say Atlanta bankruptcy attorneys, it won't do anything to stop folks from losing their homes after the start of the New Year.

Continue reading "Foreclosures Stop Temporarily for Atlanta Homeowners " »

It seems nothing has been able to slow the tidal wave of recession-related foreclosures - that is, until now.

State officials across the U.S. are joining forces to investigate illegal activities that could have led to thousands of unfair foreclosures over the past few years, according to the AP Press. Allegedly, lenders have been allowing foreclosure documents to be signed without required witnesses, without proper analysis and - in some cases - without even being read. It's a victory for millions of consumers who may be struggling to pay the bills - but are still following the rules, say Atlanta bankruptcy attorneys.

Continue reading "Foreclosure Process Comes Under Fire in All 50 States" »

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" »