Atlanta Bankruptcy Attorney Blog

Family and financial difficulties may be causing Atlanta residents to suffer from unhealthy amounts of stress, according to a recently released survey.

While the American Psychological Association poll showed that stress levels in Atlanta have fallen slightly since peaking last year, the area still reported an average stress level of 5.3 on a 10-point scale - more than three times what's considered healthy. Up to 67 percent of Atlanta participants said they have trouble managing and reducing stress.

For some, filing for an Atlanta bankruptcy may provide much-needed relief.

Those who suffered the most stress were usually caregivers of an elderly or ill family member. Atlanta bankruptcy lawyers can attest that, on top of the obvious emotional burden, many clients caring for a relative often end up carrying a significant financial burden.

At the heart of the problem may be willpower.

One third of adults cited lack of willpower as a barrier to overcoming stress, and more than half of these Atlantans said they need more confidence to make a change.

It takes determination to dig out from underneath layers of credit card debt and medical bills. There's no way around it - large debts require sacrifices and lifestyle changes. The only way to regain control of debt is to pay enough each month to lower the balance. But paying more than the minimum on a $10,000-plus debt burden can leave little cash leftover for other expenses.

Lowering debt little by little can be done. But for many, maintaining the willpower to stick to a tight budget year after year is just not realistic.

When a financial situation becomes overwhelming - let's say that an expensive mortgage, hospital bills or unemployment led you to drive up your credit card balance - bankruptcy can provide the breathing room needed to make changing your money habits possible.

Filing for Chapter 7 bankruptcy can eliminate most or all of a person's unsecured debt. In exchange, filers may occasionally be required to give up some assets - though many types of property are exempt. Chapter 13 is another Atlanta bankruptcy option that legally protects assets, but involves committing to a repayment plan for debt. After the repayment period is up, remaining debt can be forgiven.

Stress over debt takes a toll on health. People suffering from financial troubles can experience health problems ranging from regular headaches to medical maladies as serious as ulcers, clinical depression, and even heart attacks, according to the Associated Press.

Continue reading "Atlanta Bankruptcy Can Alleviate Stress Caused by Debt Problems, Lack of Financial Willpower " »

Credit card debt doesn't usually happen overnight - sometimes it just kind of sneaks up on you.

Unfortunately, this means that many consumers don't easily recognize when their debt crosses the line from manageable into unmanageable territory. As a result, they may ignore steps that can help relieve debt and protect their assets - such as an Atlanta bankruptcy filing.

According to Bankrate.com, 9 of every 10 Americans say that debt is not a significant issue for them. Yet statistically speaking, most consumers are shouldering thousands of dollars in debt. The average household carries $4,200 in credit card debt - in Atlanta, that number is as high as $4,960.

By some estimates, more than 10% of Americans are delinquent on their mortgage. Many more people are struggling to make payments. Often times, the problem is too much credit card debt.

It all points to one thing: Atlanta consumers are in debt denial.

It's easy to think of credit card debt as a national problem, not a personal one. Maybe you tell yourself that you'll cut back on spending tomorrow or that when you get that raise or new job you'll be able to get things under control. Maybe you're ashamed to admit you have a problem. Yet that's the kind of denial that allows debt to spiral out of control, according to our Atlanta bankruptcy attorneys.

If you're routinely making minimum payments, leaving bills unopened, or squirreling away purchases, it's time to take an honest look at your finances. Here are some of Bankrate.com's top signs of serious debt trouble.

Remember, there's nothing shameful about having too much credit card debt - many Americans are in the same boat thanks to the Great Recession. It only reflects poorly on you - and your credit - if you don't do anything about it. If you find yourself identifying with many of the points on this list, filing for bankruptcy in Atlanta may help you take charge of debt once and for all.

Are You Frequently Paying Just the Minimum?
It's simple math: making minimum payments means you're paying interest on the majority of your balance every month. Depending on the size of your minimum, you may not even be covering interest. If your last several payments haven't been enough to lower your credit card balance - but you can't afford to increase them - it's time to consider getting help before you debt grows any further.

Are You Spending More Than You Earn?
If you're always putting more on your credit cards that you're bringing home, it's unrealistic to believe you'll be able to pay off your debts without assistance. Waiting for that raise or bonus? Studies show that when people increase their earnings, the new money usually goes to groceries, gas, new clothes, etc. Putting off dealing with debt won't make it go away. It's only a matter of time before your growing balance leads to ruined credit, harassment from debt collectors, garnished wages and more.

Are You Maxing Out Cards?
Do you frequently get close to - or exceed - your credit limit? If you do, you're hurting your credit. Up to 35% of your credit score is based on the amount of debt you carry in relation to your limit. Using under 30% of your available limit is recommended. Using more than that? You probably have too much debt.

Are You Ignoring Important Bills?
Do you leave bills unopened until the last minute because it stresses you out to think about debt? Ignoring your balance makes it too easy to keep spending when you know you shouldn't. It's also a surefire way to rack up late fees and other expenses.

Are You Hiding Purchases?
Many times, hiding credit card bills and purchases from your family is a sign that you're feeling guilty over your debt. Why suffer alone in shame? Two heads are better than one. Talking about your debt problems with a trusted relative, advisor, or attorney can help you find solutions for your debt and also relieve the stressful burden.

Continue reading "How to Tell If You Have Too Much Credit Card Debt in Atlanta" »

Many people believe that once they die, their debt dies with them. But credit card companies and lenders aren't so forgiving.

They will go after the person's estate and could try to cut into the assets that have been left behind for surviving family members. Ultimately, the debt may be passed on from the dying family member to his or her closest relatives, if there are connections like a co-signed loan or business partnership.

For these people who live in northern Georgia, it's possible that Atlanta bankruptcy protection can help. If you are thrust into a position of having to bear another person's debt because of death, filing for bankruptcy will allow you to get space from creditors and protect your finances.

If you are a Georgia resident having trouble with your money and don't know where to turn -- whether because of debt from a loved one who died or debt because of job loss, medical bills or high interest and fees from credit card companies -- consulting with an experienced Atlanta bankruptcy lawyer is an option to consider.

Getting sound legal advice about bankruptcy could be crucial at a time when you aren't sure what step may be right. Debt can cause many family problems, and it can be difficult to get out of its grasp once you are too deeply in.

A recent Wall Street Journal article looked at the saga of a Cape Coral, Fla., woman whose husband died of colon cancer in 2010. The 68-year-old, a retiree, was getting up to 10 calls a day from collection agencies, asking for money to pay off a credit card. They said her husband owed more than $16,500 on a credit card.

The sneaky debt collection agency employee told the woman she wasn't obligated to pay, but then told her there were things she could do to "get this taken off your plate." The woman said she had nothing after having sold assets to pay for medical bills and the cost of a funeral. She said she had $2,000 left in life insurance proceeds. She offered that up.

The article goes on to say that in some cases, surviving family members have a legal obligation to pay debts, unless they are a co-signor on a loan. A recent trend has shown that debt collectors have resorted to harassing survivors in order to try to get a portion of the money that the loved one owed.

They try to tell them there is a moral obligation to pay, especially if they benefited from the money spent. Creditor trade groups say that going after what is owed helps other older borrowers because the more creditors get stiffed when a person dies, the less likely they are to lend out money to older borrowers in the future.

Banks tend to farm out this work to debt collection agencies so the banks don't have to be the ones to call grieving widows and widowers asking for money.

There aren't definitive statistics on the death debt collection industry, but the article opines that court records show it's growing. Statistics show that in 2007, the median debt level for Americans between 65 and 74 was $40,000, up from less than $30,000 in 2004, about $15,000 going back to 2001 and 1998 and a huge leap from $8,000 in 1992.

Because of lower retirement savings, a poor real estate market, dropping house values and high unemployment rates, more people are swimming in debt than ever before. Experts believe that debt collectors are trying to profit when people are at their most vulnerable.

Thinking they can pay off some money in order to make the calls stop seems like a smart investment when they have just lost a loved one and don't know how their new life will be without them. But it's unlikely that one payment will do the trick.

Continue reading "When Debt Follows Family After Death, Bankruptcy May Help" »

There's good and bad news when it comes to the Federal Reserve's recent report on credit card debt in the U.S.

The good news is that the latest numbers show credit card debt fell through October 2011. That's the fourth straight month that consumers have cut back on plastic.

As for the bad news? Atlanta bankruptcy attorneys point out that the data doesn't take into account the holiday shopping season, when many Atlanta consumers feel compelled to spend money that they don't have. And, of course, that requires a credit card.

It's not that people are swearing off credit cards. One of the most likely causes of the debt decline is that consumers are struggling to pay down large balances of existing credit card debt so that they can gain access to new credit. Of course, with incomes mostly stagnant, it can be difficult to find the money to pay much more than the minimum balance - which is required to take a bite out of credit.

In an article about the report by CreditCards.com, an Atlanta resident said she started paying down her balances after discovering she could save a significant amount of money if she didn't have a balance on her card each month. Atlanta bankruptcy lawyers agree with her strategy. But we also know that not everyone has the funds to pay off balances in full.

For those of us with overwhelming credit card debt, bankruptcy offers a solution. Filing for bankruptcy in Atlanta has helped thousands of people eliminate debt, avoid foreclosure, and regain their financial independence regardless of the economy we live in.

One of the biggest problems with credit card debt is that it works its way into every area of a person's financial life.

Interest and fees cause debt to grow far beyond original purchases. Too much debt impacts your ability to handle house payments and other important expenses. When you take on too much credit and start missing payments, your credit report takes a beating, making it impossible to qualify for affordable rates - and even impacting your chances of being hired for a job.

Credit card debt can easily snowball out of control. Bankruptcy can reverse that snowball effect. Filing for Chapter 13 bankruptcy may allow you to make more affordable payments on your debts over a period of 3-5 years, freeing up more money for you to make other payments like the mortgage.

Chapter 13 also has the unique ability to legally stop foreclosure. Afterward, remaining debts are discharged. For those who can't manage to make payments, Chapter 7 bankruptcy can often clear debts completely. Our skilled Atlanta bankruptcy attorneys can identify the best form of bankruptcy for your individual situation so you can start making progress on paying off credit cards and getting your life back.

Continue reading "While Credit Card Debt Falls for Some, Atlanta Bankruptcy Offers a Solution for Others" »

Think about your family for a minute. You probably have cousins, uncles, aunts and other extended family members in addition to parents, siblings, a spouse and children.

You may feel like you would do anything to help them, even if they got into a financial mess. But what if that caused your own family to get into money problems? Some people end up getting into debt this way. They may loan out money and end up losing a job and badly need that money, but it's gone. This could lead to reliance on credit cards.

For people in Georgia who get into problems with family and money, Atlanta bankruptcy lawyers can help. Consider filing for Chapter 7 bankruptcy in Atlanta. It may be appropriate, depending on the person's circumstances.

In order to qualify, a person must have a certain income level compared to other people in the state. Typically, Chapter 7 is for people who have little or no income, but who still have amassed debt. This tends to work for people who have recently been laid off, are otherwise out of work and who may have incurred major medical bills. It can also be a useful tool for someone who is single and struggling to get by.

Chapter 13 bankruptcy, another form of consumer debt relief, is a far less popular method, but has been gaining popularity in recent years due to the real estate bust. The "wage earners" form of bankruptcy is designed to help people keep their assets, but requires they set up a payment plan over three to five years in order to pay back some of the debt.

A recent Wall Street Journal article looked at the tale of one woman who suffered because of poor financial planning by one of her relatives. A man had just retired and was looking forward to an easy life until his son-in-law died of an aneurysm. The son-in-law had borrowed hundreds of thousands of dollars to start a business and had no life insurance, meaning his wife -- the man's daughter -- with little to raise her three children.

The retiree's financial planner couldn't do anything to help him at that point, but now screens her clients for financial risks for their extended families. The big question is whether you could see any of your relatives knocking on your door, asking for money one day.

Some common questions that are asked of her clients is whether they would have to support their parents in the future, family medical history and other questions. If you helped a niece or nephew by co-signing for a loan, what happens if they default or have health problems?

The article goes on to promote the idea of life insurance to cover major problems that a person may encounter. Life insurance outside of the company is preferable because being laid off could leave someone without coverage.

If a person has major debts and they die early and unexpectedly, their spouse and children could be left with major problems. And that's when parents and grandparents feel obligated to help and end up getting into financial problems themselves.

Continue reading "Preparing For Family Burdens in Georgia May Lead You to Consider an Atlanta Bankruptcy" »

A new year always holds the promise of a fresh start. And when times are tough - as they've been for many Atlanta families in recent months - that fresh start is even more enticing than usual.

Last year, Georgia's economy grew by a dismal 1% and suffered an unemployment rate of 9.9% - one of the highest in the nation, reports the Atlanta Business Chronicle. Economic growth is anticipated to rise to 2.3 percentage points next year - a slight improvement, but not enough to help the many residents still out of work, struggling to pay the bills, and fighting off foreclosure.

But while we can't control the financial future of Atlanta in 2012, we can control the future of our own personal finances with a little persistence - and, in some cases, an Atlanta bankruptcy filing.

Reduce credit card reliance
The best way to better your finances in 2012 is to wean yourself off credit dependence, which is the first step to stopping the financial bleeding.

There's a well-documented correlation between bankruptcy filings and credit card standards, according to Atlanta bankruptcy lawyers. When banks hand out credit cards like candy, bankruptcy filings go down. Why? It's because credit provides an easy short-term solution for struggling consumers. The problem is that credit also leaves long-lasting damage.

When you need to buy Christmas presents or pay that phone bill, a credit card buys time - but ultimately you still owe the original amount plus interest. Credit doesn't get to the root of the problem. An Atlanta bankruptcy filing, on the other hand, does. Yes, bankruptcy takes more effort, but it has the ability to eliminate past debts, stop foreclosure, and allow Atlanta families to get back on their feet.

Adjust mortgage terms
As home values continued to dip through 2011, it's been estimated that more than a quarter of all Americans are underwater in their mortgage - in other words, they owe more in payments than the total value of their home.

If you're stuck with a property you can't afford, you may be able to refinance your mortgage with today's low rates thanks to the government's Home Affordable Refinance Program. In some cases, buyers are able to attain a 30-year fixed-rate mortgage for less than 4%!

But what if you can't refinance because of a job loss, medical emergency, or other financial burden? A Chapter 13 bankruptcy filing can relieve the pressure of debt, lower your bills, and allow you to avoid foreclosure and keep your house.

Start saving once and for all
Every financial situation is different, but the cold hard truth remains the same - if you want to achieve financial freedom, you're going to have to spend less than you earn.

There are a number of ways to accomplish this. Increasing your income is one solution, though it's not realistic for most Atlanta workers. Lowering your spending is another option. If you can't afford to cut back on purchases and beef up your savings, Atlanta bankruptcy lawyers may be able to help.

Chapter 13 bankruptcy is often the most realistic way to make a mortgage more affordable, while Chapter 7 bankruptcy can help you pay the bills when facing a serious income shortage - whether from a lack of unemployment or insurmountable bills. Why not make 2012 the year you start making ends meet?

Continue reading "How Atlanta Bankruptcy Filings Can Improve Consumer Finances in 2012" »

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" »

The Wall Street Journal recently reported that there are ways to avoid the psychological damage done when collection agencies continue to badger people to collect debt.

Our Atlanta bankruptcy lawyers would argue that one way to avoid the headaches of collection agencies and their representatives is to avoid them altogether.

Filing for bankruptcy in Atlanta immediately stops collection agencies from bothering you. Once you file, they are alerted to cease communications with you and direct their communications with the court.

The whole purpose of filing for bankruptcy is to eliminate debt. But there are other benefits that can make filing worthwhile. Stopping wage garnishments, ending the countless calls and e-mails and other bothersome alerts can make life much easier for those who are in debt.

Banks and other lenders are ruthless when it comes to collecting what is owed. They don't care what damage they are doing. The collections agencies are paid to get money and the lenders want to be paid. It's a bad cycle that doesn't end until you pay up or you file for bankruptcy.

These companies rarely want to listen to debt management solutions, payment plans or cutting back on how much you owe them. Like the banks and foreclosures, the credit card companies and other lenders are interested in maximizing profits and it doesn't help when they could stand to lose money.

A recent Wall Street Journal article looks at alternative strategies to limiting the damage done by collection agencies. It follows the story of a New York man, a struggling musician, who would get 40 to 50 automated calls a day.

His solution was to by a caller ID box with a ring controller. It gave him peace while he negotiated a 69 percent reduction in the $54,000 in credit card debt he owed. The story was on the heels of the continued decline in consumer credit, which has gone down nearly every month since September 2008.

While this man was able to cut down debt after he stopped paying and instead of paying 50 cents on the dollar, he got them down to 31 cents on the dollar. But many others aren't so diligent. A lot of people get warn down by continued calls and the harassment that debt collectors are known for bringing.

People sometimes decide just to make a minimum payment just to shut them up. This just leads to a higher amount of debt, higher interest rates and hidden fees that further cripple the person's finances.

Some people instead go running to debt relief companies or debt management companies that promise to work on their behalf. But these companies are no more likely to make a dent in the debt than the consumer and they don't work for free. These companies would charge up-front fees of 15 to 20 percent of what is left outstanding, which could be a huge amount of money to pay for little help. They were recently banned from charging up-front fees.

All these rip-offs won't help. But there's a good chance that filing for bankruptcy in Atlanta will. Depending on the consumer's income level, how much they owe and other information, they can get all or most of the debt cleared without having to pay it back. These laws are designed to help the consumer who has gotten in a bad debt situation.

Continue reading "Avoid Psychological Damage From Collections By Filing for Atlanta Bankruptcy" »

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" »

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" »

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" »

As Atlanta Bankruptcy Lawyers reported earlier this month, bankruptcies nationwide are dropping, which many people would consider great news and possibly an indication that the economy is improving.

But as unemployment continues to stay high -- higher in Georgia by about 1 percent than the rest of the country -- fewer filings of bankruptcy in Atlanta isn't a good sign at all. What experts believe is that credit card companies and banks have lowered their standards by extending lines of credit to struggling consumers, which is simply going to make their situation worse.

Newly released statistics show that while Chapter 7 bankruptcy filings have dropped during the first seven months of 2011 compared with the same period in 2010, Chapter 13 bankruptcy is actually on the rise. Statistics from the U.S. Bankruptcy Court for the Northern District of Georgia, which includes areas from Atlanta, Newnan and Gainesville in the south, to Rome in the north, show that more people are shifting away from Chapter 7 bankruptcy and toward Chapter 13 bankruptcy.

In 2010, 19,843 people filed Chapter 7 bankruptcy between January and July, down to 17,487 this year. That's about a 12 percent drop. But for Chapter 13 filings, the number has spiked about 10 percent from 11,291 in 2010 to 12,584 this year.

In both forms of bankruptcy, the consumer's debts can be discharged, offering him or her the same kind of freedom that others who finish the process enjoy. In Chapter 7, consumers can get a complete discharge of their debts after the process is complete. Chapter 13 bankruptcy works differently, but with the same result.

In Chapter 13, a person must set up a payment plan, usually over three to five years, with reasonable monthly payments to pay back creditors and lenders. After the payments are completed, all remaining debt is discharged and the person is through with those debts. Typically, Chapter 13 is designed for people who have assets such as a home that they want to try to protect. They are allowed to keep their assets, which is also the case for many people in Chapter 7 bankruptcy as well.

For those who are unemployed and have few prospects of getting a job, they are looking for a lifeline. If a credit card company offers a new line of credit, that's exactly what they seek to help them get by. Sadly, this is just going to push them further into debt while they hold out hope that a new source of income may be coming.

Even if they are fortunate enough to find work, they are now saddled with even more debt that likely outpaces their income. But many people simply rack up credit card bills and are hit with unrealistic interest rates and hidden fees. These are typical tactics by credit card companies to make money off the consumers who keep them in business.

So, it's not surprising that people are seeking ways to get help from these credit card companies. Bankruptcy is one of those ways to help. If you are in such a situation, find out what your options are today.

Continue reading "Chapter 13 Bankruptcy in Atlanta Increases in 2011" »

Hurricane Irene stormed up the Eastern seaboard as a low-category hurricane and yet became one of the most destructive storms in recent history after causing flash flooding, downing trees and power lines, and damaging homes in many states.

It's usually not until a major natural disaster that we consider how powerful Mother Nature is and how devastating the damage left behind can be. Most Georgians remember the tornadoes that tore through Alabama and parts of Georgia earlier this year. Even premier insurance coverage doesn't always cover all losses, so people can be left dealing with a financial disaster.

It's events like these that can radically alter a person's life. Having a home severely flooded or damaged can leave bills mounting, even after insurance coverage. These unexpected bills on top of all other regular bills, can leave a person in ruins. Bankruptcy protection in Atlanta, however, can help a person turn things around.

If the debt that is mounting is so unbearable that a person must choose between which bill to pay and how they're going to buy groceries, it may be time to consult with an experienced Atlanta Bankruptcy Lawyer to discuss your options and determine how best to move forward with life.

A recent Forbes.com article discusses why you may not be prepared for the next "Hurricane Irene" of your life. Earthquakes and hurricanes have been common in the news in the United States in recent weeks and this may be a good time to figure out how to avoid financial disaster after a natural disaster.

Earthquake coverage: This may not just apply to Californians. As Virginians recently saw, earthquakes can happen anywhere. Most homeowner's policies don't include earthquake damage, so it will require a separate policy. Areas not usually affected by quakes usually have smaller premiums.

Hurricane coverage: Check to see if your policy covers hurricanes because some companies are dropping coverage. And make sure it covers more than wind damage. Water and flooding can be equally damaging or even more of a disaster. Post-storm mold can be very expensive to remove.

Is your house under-insured?: As many as 64 percent of American homes are underinsured by about 27 percent. Over-the-phone salespeople are usually poorly trained and don't offer enough coverage. You may have to pay out-of-pocket in a disaster.

Are your "valuables" really that valuable?: Record everything you own and store the video online so you can access it at any time. You may need it to show an insurance agent to prove the value. Also, make sure the policy covers the "replacement value" and not necessarily the "actual cash value."

How to choose a policy: Specialty insurance can be expensive, so try to bundle it to get a discount. If you have special memberships, a home security system or other things that would be attractive to insurers, that may score some extra discounts, too.

Continue reading "Natural Disasters in Georgia Can Toss Consumers into Debt, Bankruptcy" »

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" »