Atlanta Bankruptcy Attorney Blog

Think Uncle Sam will take care of you if you lose your job? You're right - for awhile.

The first $2,400 you receive in unemployment benefits are free for you to keep, according to Atlanta bankruptcy attorneys. Make that $4,800 if you file taxes jointly as a married couple. But after that, you're responsible for paying taxes on benefits just as you would on a regular paycheck. Wondering how much you might owe? You should be receiving a Form 1099-G, which you'll report on your tax return.

Paying taxes even when you've been out of work sounds like a crap deal. But fortunately there are some ways to lessen the blow.

Continue reading "Atlanta Bankruptcy Attorneys Suggest Emergency Savings Funds For Unexpected Taxes" »

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" »

'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 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" »

When an acquaintance of mine lost her job, her first priority was to continue feeding her kids. Her second priority? To find another job - so she could continue feeding her kids. Needless to say, she spent most of her time searching for work and none too much time worrying about the mortgage.

The good news: three months later, she found a new job (she was a smart, educated woman, so it was only a matter of time). The bad news: she lost her home to a short sale in the process. She stopped making payments and ultimately gave up.

Apparently, her story is becoming more and more common. According to this Washington Post article, unemployment - rather than subprime mortgages - is now the leading cause of foreclosures. Since the unemployed don't have steady income, they're even less likely than most to qualify for loan modifications. And even when they do find work again, they're often unable to catch up on their mortgage because of late fees their lenders levied on delinquent payments.

But it doesn't have to be like that. Bankruptcy is a way to potentially stop foreclosure and free yourself from debt in the process - even if you're dealing with unemployment.

Continue reading "Atlanta Attorneys Say Unemployment Doesn't Have to Equal Foreclosure" »