Atlanta Bankruptcy Attorney Blog

Recently released numbers by the American Bankruptcy Institute showed that the number of people filing for bankruptcy in the Atlanta area decreased slightly overall but still remained high in the third quarter of 2011.

Our Atlanta bankruptcy lawyers understand that historically the third quarter numbers are typically not as high as fourth quarter numbers, so it will be interesting to see how many people filed for bankruptcy in Atlanta in the last part of the year.

We know plenty of people are coming to discuss their situations with us on a daily basis. With the economy still in the tank, jobs scarce and foreclosures on the rise, it's no wonder people are considering filing for bankruptcy.

Some analysts believe that the numbers would be higher, except that credit card companies and other lenders in recent months have loosened their standards and attempted to give out more credit than that have in the past.

That's evident by the many television commercials starring famous actors we see every day. Capital One, Chase and other companies are attempting to get as many people to sign up for their cards as possible through "perks" and "rewards." But these benefits may not be all that they're cracked up to be, and may only kick in if you spend a lot of money.

According to the American Bankruptcy Institute, there were 12,672 bankruptcy filings in the United States Bankruptcy Court for the Northern District of Georgia. That is the court that deals with bankruptcy filings for Atlanta and the surrounding area. The southern and middle districts combined had about 5,500 bankruptcy filings last quarter.

For the northern district, that was a drop of 200 filings, or 1.5 percent. While the numbers have dropped steadily since the 14,040 filings in the third quarter of 2010, last quarter's filings were higher than every quarter except one starting in the fourth quarter of 2009 and going back more than five years.

Another interesting statistic out of last quarter's numbers is that Chapter 13 bankruptcy numbers are up this year. In fact, they have risen each quarter this year. In the first quarter, there were 101,006 filings, up to 101,286 in the second quarter and 102,900 this past quarter. Chapter 7 bankruptcy filings in Chicago and nationwide dropped from 367,486 to 336,930 this quarter.

Statewide, there were more bankruptcy filings last quarter -- 18,712 -- than the last quarter, up from 18,397. Those numbers have trended downward from the third quarter of 2009, when 19,712 people filed. Numbers peaked in 2010, when 20,694 people filed in the third quarter.

We report all these numbers to show that many people are considering bankruptcy in Atlanta in these tough times. It is a viable option for many families who are struggling to get by and who aren't ashamed to let the laws designed to help consumers help them. With thousands of dollars in debt eliminated, people can once again focus on paying their bills, staying in their homes and not dealing with collection agencies.

Continue reading "Atlanta Bankruptcy Numbers Drop Slightly, But Remain Steady in 3rd Quarter" »

If you've watched television in the last few months, you've seen Jimmy Fallon, Alec Baldwin and that guy hired by Chase pitching the "cash back" benefit or the "perks" and "rewards" of their respective credit cards.

MoneyRates.com recently reported that many credit card companies are trying to seize the moment and strike quickly by trying to lock in new customers by giving away holiday-themed deals.

The reason Black Friday gets its name is because retailers believe that the big shopping day will turn their years around by pushing them from in debt (in the red) into profits (in the black). But in order for this to happen, consumers must be put in the red. And that's what credit card companies are hoping, too.

Atlanta bankruptcy lawyers know that credit card companies make money off of your debt. When consumers swipe the card, they become more indebted to the creditors and their pre-planned hidden fees kick in and high interest rates can kick in if payments are missed or only minimum payments are made. This just leaves consumers struggling as if they were swirling down a drain.

But they are terrified when borrowers mention the word bankruptcy. Filing for bankruptcy in Atlanta puts the consumer in the driver's seat and makes credit card company officials shiver because they now know they won't be able to recover as much money as they are owed.

As MoneyRates points out, these companies are trying to get as many consumers on-board with their cards as possible. The more that is put on their cards, the more they make off interest and other penalties. It keeps investors happy.

Here are some recent examples of "perks" and "rewards" being used by the credit card companies:

• American Express offered a 20 percent discount from certain companies for those who shopped on Small Business Saturday.


• Bank of America has a card that pays 2 percent cash back on groceries and 3 percent on gas up to $1,500 every three months. Another card offers 11 percent cash back on college when shoppers use Upromise.com to shop this holiday season.


• Chase and Citibank are paying cardholders $200 in cash after they put $500 on their cards.


• Capital One has a new card that offers 1 percent cash back on day-to-day shopping and 50 percent in bonus cash back every year.


• Discover offers 0 percent interest for 15 months on purchases and consumers can get 5 percent back on $300 in purchases.

Maybe some of these sound like really good deals. "Cash back" has a great ring to it, doesn't it? But what these creditors aren't telling consumers is that in order to get many of these perks, they have to spend huge amounts of money and, in some cases, pay in back within a month or two to activate the perks.

All of these things are designed solely to entice people to sign up for their cards in order to make money. That's the bottom line. They are smart enough not to give up free money unless they're making a profit. Don't fall into the trap this holiday season.

Continue reading "Credit Card Companies Trying to Use Holiday Shopping to Lead Atlanta Consumers Into Debt" »

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" »

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 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" »

You've probably noticed the increase in TV commercials and website advertisements that credit card companies are developing. Typically the pitches include introductory low interest rates and high rewards, rewards, rewards! Well, that's just another credit card company money-making tactic in a huge push to sign up new customers for their death-trap cards and other offerings.

But what the commercials don't say is that the low interest rates apply only to a select few consumers. They also don't mention much about colossal hidden fees that can be charged in certain circumstances. Credit card companies are more likely to print these details in tiny fine print after you're signed up.

It's these fees and chicanery that lead many people to consider bankruptcy in Atlanta and throughout Georgia. When people get stuck making the minimum payment on their credit cards, the companies slam them with fees and make the balance significantly higher. This leads to years of battling credit card companies and trying to pay off what they owe.

That's why Atlanta bankruptcy lawyers would suggest you consider bankruptcy rather than struggle with mounting debt for years. It's better for most people to eliminate their debt through bankruptcy, giving them the opportunity to start anew.

According to Forbes.com, Citigroup sent out nearly 350 million credit card offers in the third quarter, enough for every man, woman and child worldwide to have their own credit card! That is an amazing statistic.

What this shows is that credit card companies are desperate in their attempts to get people to snatch up their credit cards so they can continue making money off them. While some consumers consider credit cards a lifeline or a necessity, the companies consider consumers ripe for the picking. Their fees and interest rates are the only way these companies can survive.

In the third quarter, The Wall Street Journal estimates that Citigroup spent more than $240 million sending out all those credit card offers. And that doesn't include the other marketing expenses, like hiring A-list celebrities for their TV commercials and online ads.

But Forbes says that the credit card companies overall are targeting more wealthy customers because this demographic is less likely to default on their debt.

MasterCard, for one, is trying to entice "high-end" consumers rather than sending out pitches for their card to every consumer. MasterCard's goal is to appeal to residents of certain metropolitan areas, starting with New York City. Its rewards program gives members the opportunity to enjoy perks at trendy local events, priority access to tough-to-reserve seats at swanky restaurants, and behind-the-scenes entry at certain activities.

While this may be a good move for the rich and uber-rich, the common man and woman probably won't be qualifying for these cards. No matter that everyone won't qualify on the high-end side because every credit card company -- MasterCard included -- has a other higher-cost types of cards to entrap the average person.

It's predatory lending practices that lead to the possibility of debt in Atlanta and elsewhere. When high interest rates and fees kick in, consumers are thrust into the position of considering bankruptcy to get out from what the credit card companies have done to them.

Continue reading "Credit Card Companies Desperate For Consumers Who May Be Thrust Into Atlanta Bankruptcy" »

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" »

A recent article in The New York Times reports that about 20 percent of those looking for financial counseling in 2010 and 2011 cited medical debt as the No. 1 cause for seeking bankruptcy protection in Atlanta.

Studies have long shown that medical bills, job loss and predatory lending practices -- such as offering lower interest rates for a time only to see them spike to incredible highs later on -- have led to people considering bankruptcy in Atlanta and nationwide. Debt can cause family problems and make getting by day-to-day difficult.

A freak accident -- your fault or not -- can cause even a family with sound finances to go into a tailspin. No one can really get a handle on the out-of-control medical costs that have made life difficult for many Americans. Universal healthcare, federal programs and other failed initiatives have tried to get a handle on what hospitals charge and what insurance companies actually cover. For those who are uninsured, the toll can be even more devastating.

The article states that according to a CredAbility survey, an Atlanta-based nonprofit credit counseling business, the number of people who say medical bills are a major factor in their decision to file for bankruptcy has jumped about 7 percent since 2010 and 8 percent from 2009. The analysis included more than 100,000 clients nationwide in each of the two previous years plus another 47,000 for 2011.

As unemployment jumps, many people have lost healthcare coverage, yet with one spouse bringing in a steady paycheck, it's possible that people don't qualify for programs that would cover medical costs in an emergency. Insurance companies are trying to make money by jacking up premiums and deductibles, as well.

Experts believe that debt from medical bills is an increasing problem not only because of the high costs, but also because people are less-likely to default on medical bills compared to other types of bills. Some people take out additional credit cards in order to make the payments.

"With medical bills, people are very compelled to make good on those debts," said Michelle Jones, the senior vice president of counseling for the agency. "If you're sick, it's the person taking care of you. So they feel bad about not making the payment. People take extraordinary steps to pay them."

Medical bills also carry an extra layer of frustration and stress because hospitals and clinics are more apt to use collection agencies rather than play phone tag with a patient who won't pay for expensive procedures not covered by insurance. Creditors calling, e-mailing and bothering can add to the already present stress of being in debt.

Medical bills can sneak up on a person because they usually come out of nowhere -- a car accident or cancer or another illness that wasn't expected -- and can paralyze a family's finances. And hospitals tend to treat their bills as if they must be paid right away. They forget that people must pay for their houses, feed their families and get gas to go to work, too.

If medical bills get to be too much, bankruptcy in Atlanta can ease the pain. If credit scores are plummeting and bills are piling up, the process will clear debt and allow a consumer to move on with life, without the anchor of debt pulling them down.

Continue reading "Medical Bills Increasing Factor in Atlanta Bankruptcy" »

A recent report in The New York Times found that bankruptcy numbers in June were down from May. But it doesn't necessarily mean that the economy is improving, rather Atlanta Bankruptcy Lawyers believe it likely means that credit companies and lenders are sucking more people into high interest rate loans and credit opportunities.

When bankruptcy numbers are up, it usually means that credit is tight and lenders aren't willing to help distressed people in need. When the numbers are down, research shows, it's probably because lenders are willing to extend credit to people in need.

But along with offering more credit, these predatory lenders are also offering high interest rates that hang over the heads of people desperate to keep going despite their own poor credit and high debt.

But there's hope and help.

Filing for bankruptcy in Atlanta is a way to use the law to a consumer's advantage. The laws are set up to help a person get out of debt by following a series of steps dictated by the court. The idea is that if someone is drowning in debt and wants to get back on track, they can use the law to do that. But they must be disciplined and must follow the procedures laid out by the judge.

There are different forms of bankruptcy, depending on the person's situation. Chapter 7 bankruptcy, for instance, is designed to help people who have maxed out their credit cards, been set back by unexpected and costly medical bills or a job loss that has left them financially ruined. With little or no assets and not much earning potential, Chapter 7 allows for a fresh start.

Chapter 13 is designed for people who have a lot of debt including a mortgage, but who want to stay in their homes. This form of bankruptcy in Georgia allows for the creation of a payment plan to take care of those debts over a 3- to 5-year time frame. Both forms can be effective tools to clear out debt that has taken years to amass.

According to The Times article, access to credit can influence the bankruptcy rate over the short term. Overall, rates are expected to be down slightly compared to last year. But that would still mean about 1.5 million people nationwide file for bankruptcy in 2011, an astounding number of people who have realized the value in this set of laws.

According to the American Bankruptcy Institute, there were 709,303 consumer bankruptcy filings in the first six months of 2011, which is down about 8 percent from the same time period in 2010.

So, many people are using this avenue to save their homes from foreclosure or preserve their financial future. If you believe this may be an option for you, call today. Setting up a free consultation is easy.

Continue reading "Atlanta Bankruptcy Filings Dip, but Levels Remain High For Help With Debt" »

It's no secret that many Americans are struggling with an insurmountable amount of debt caused by credit card use, unpaid mortgage or unpaid medical bills. As your credit score has, oftentimes, already been ruined by these balances, you're best bet may be to file for Chapter 7 bankruptcy in Atlanta or you hometown. Currently, medical expenses are the leading cause of bankruptcy filings. With the outrageous cost of procedures, medications, treatments and other medical related filings, more and more U.S. citizens fall deeper and deeper into debt. While many citizens don't expect to be hit with the suffocating bills, as they start off right the right intentions of paying their bills and not expecting to have to file for bankruptcy in Chicago or elsewhere in the United States.

Consulting a Chapter 7 bankruptcy lawyer in Atlanta can help you to clear your debt and start over again to rebuild you credit rating. When there seems like no where to turn, your best best is to turn to an experienced attorney as we can help you to sort through the legalities of a bankruptcy and get you on your way to financial freedom once again.

According to Fox Business, there are two other routes that those in a financial crisis can attempt before actually filing for bankruptcy:

-Debt settlement. Collectors know that the longer collection attempts drag on for, the less likely it is that they're going to get their money. Speak with your lenders directly and explain to them that you are considering filing for bankruptcy. If you inform them that you are willing to come to an agreement instead, offering them 25 to 30 percent of the balance, they may be willing to settle the debt. When making an offer to these companies, always expect a counteroffer. When an agreement is met, be sure to get it in writing before making any payments.

-Debt Management. Nonprofit credit counseling agencies can help you to negotiate payments that you're able to afford. The idea behind debt management is to come up with payment plans that can allow debtors to work on fixed schedules and payments and that creditors will accept. Interest rate reductions and principal forgiveness may allow for another way to create a reasonable agreement. Talk to your lenders personally to try and strike a deal. Such programs from creditors can last up to a year, whereas some plans through credit agencies can last 48 to 60 months.

Still think you're too far in debt? Don't worry. An experienced attorney can help you through with a Chapter 7 bankruptcy filing. Sometimes this is the only way to help a consumer regain their financial independence. A chapter 7 bankruptcy can help you to eliminate debts from medical bills, credit cards, utility bills, IRS payments, payday loans, even personal loans and wage garnishments. Chapter 7 deals with liquidation. This is a common form of bankruptcy in the United States and is often the quickest way to get out of you unsecured debts and start rebuilding your credit score with a clean slate. In come cases, debts can be discharged in a few months and you can be back on the road to financial stability.

Chapter 7 bankruptcy may be right for you if you have little or no income, you have a lot of unsecured debt, you currently live paycheck to paycheck or you have very few large assets. It is important for you to contact an experienced bankruptcy attorney if you're thinking about filing for Chapter 7 bankruptcy as they can help you to settle the disputes and move past the unfortunate times and on to a brighter future.

Continue reading "Chapter 7 Bankruptcy in Atlanta the Best Option for Many seeking Fresh Start" »

Patient advocates are accusing hospitals of excessive markup on medical services. Statistics proving these claims can be found by comparing various local hospitals. For example, Tenet Healthcare Corp.'s North Fulton Regional Hospital jacks up their prices an estimated 702 percent over cost. South Fulton Medical Center, another Tenet facility, marks up their medical billing by more than 600 percent. These reported markups give the two hospitals the highest markups in a 10-county metro area, according to the Atlanta Journal-Constitution.

Our Atlanta bankruptcy lawyers recognize that medical bills are the leading contributor to bankruptcy filings in the United States. We also recognize that these markups are made knowing that few patients will be able to pay the full price, according to Deborah Keel, president and CEO of North Fulton Regional Hospital.

The company's Compact with the Uninsured Program states that all uninsured patients will receive a discount, patients that still cannot pay their bills will receive long-term, interest-free payment plans.

"To put a discount of 50 percent on a procedure that's been marked up 700 percent, that's still a markup of 350 percent and that's still a problem for many patients, especially when the average markup across the state is about 240 percent," said Holly Lang, an accountability director for Georgia Watch, a consumer advocacy organization.

Thousands of uninsured patients are charged the full amount either because they do not qualify for assistance or they are unaware of assistance programs and do not apply.

Dealing with the astronomical cost of medical care in the wake of a medical emergency can be extremely stressful. Many times the money is not there to pay the bills because the breadwinner has taken ill or passed away. In other cases, the bills are so absurd that hard-working middle-class families have little or no chance of satisfying the debt. In many cases, the stress of such financial obligations can even inhibit a loved one's ability to recover from surgery or illness.

Speaking with a bankruptcy attorney in Georgia can help you and your family begin to regain the financial footing your rightfully deserve. Chapter 7 bankruptcy or Chapter 13 bankruptcy protection can stop the collection calls or the other harassing activities of bill collectors. You can use the ensuing peace and quiet to make sound financial decisions with the help of your attorney.

And you can begin to restore your financial reputation and reclaim the enjoyment of life you had before financial problems and illness robbed you of the financial security that is essential to peace of mind.

Continue reading "Hospital Markup Illustrates Why Atlanta Bankruptcy May be Necessary when Dealing with Medical Bills " »

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 government's plan to kill its mortgage modification program will likely have a minimal impact on consumers; the plan distributed only about $1 billion of the $50 billion earmarked for foreclosure prevention as banks fought the government every step of the way.

For many trying to stop foreclosure in Atlanta, even acceptance turned out to be a disaster. Reports are commonplace of banks using the program to grant temporary assistance, only to reject permanent modification and use the resulting arrears to file foreclosure action. In other cases, homeowners fought for more than a year to get meaningful relief, only to be denied.

Consulting a bankruptcy lawyer in Atlanta who is familiar with the options for dealing with bad mortgage debt is your best option. Even short sales or strategic defaults could result in severe financial consequences if your bank pursues a deficiency judgment -- which it may do for up to 10 years.

The New York Times reports Republicans have voted to kill the Home Affordable Modification Program (HAMP). While Democrats may try to revive it, even they admit the program has been an abysmal failure.

More than 225,000 foreclosure filings were recorded in February, according to RealtyTrac -- putting the country on pace to record another record year of home losses. And home prices have declined for the sixth straight month -- very near their lows, which would put the housing market in a double-dip recession.

A review of the program recently determined that the government's only enforcement powers come if a bank is offering too much assistance -- which has been anything but the problem. The program helped little more than 600,000 of the 1.5 million who applied. At its launch, the government had hoped to modify as many as 4 million loans.

Banks routinely lost paperwork and made it as difficult as possible to apply -- frequently telling mortgage holders they needed to be delinquent to qualify.

-Despite the epic antics of the banking industry, treasury officials have not fined a single mortgage servicer.

Those looking to appeal a denial by a mortgage servicer must start by participating in counseling via a hotline established by the mortgage industry.

Continue reading "Mortgage Assistance Program Fails -- Struggling Atlanta Homeowners Best Served by Qualified Attorney" »

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" »