Atlanta Bankruptcy Attorney Blog

Even though a weak job market is threatening to stall economic recovery, Americans increased their spending in January, Atlanta bankruptcy attorneys say.

With unemployment still hovering just under 10 percent, incomes remained almost flat in January - rising by around 0.1 percent, significantly lower than what economists expected. And for those lucky enough to retain our jobs, cost-of-living raises are still far and few between - not to mention the fact that some of us have seen reduced hours, furlough days or other paycheck-lowering actions. Yet we spent, on average, 0.5 percent more last month, according to The Commerce Department.

The good news is that we're feeling optimistic. The bad news is that we're threatening to derail our progress. See, the Great Recession has been good for at least one thing. It's increased our savings rate from a negative number for most of the last decade to more than 4.3 percent last year. Now we're starting to see that rate drop again - last month, for instance, we only saved 3.3 percent.

If we want our newfound responsible behavior to stick around, we're going to have to start slowing our spending to match our income. Fortunately, there's a formula to make saving a little more manageable.

Continue reading "Atlanta Bankruptcy Attorneys Are Saving Less But Spending More" »

When it comes to the current economy, there's good news and there's bad news, according to Atlanta bankruptcy attorneys.

First, the bad: Employers eliminated 20,000 jobs last month, way more than economists predicted and enough to send the stock market in a small downward spiral.

Now the good: Unemployment had reached a lower level than expected last month, dipping below 10 percent for the first time in awhile. Furthermore, it looks like credit might be easier to come by. Banks are finally taking a break from tightening their standards and restrictions for loan seekers. Of course, they're not easing up on those new rules, either, but at least things aren't getting worse.

Here's what it comes down to: We can't control the rate of economic recovery, but we can control the way we view the economy. We've got two choices. We can use the current economic state as an excuse for struggling financially, or we can use it as motivation to make our finances better.

Continue reading "Get Ready for the Economic Recovery By Improving Your Credit, Atlanta Bankruptcy Attorneys Say" »

Why put off until tomorrow what you can do today - especially when it involves more money in your pockets?

Technically your tax return isn't due until April 15, but you can actually file as early as February so long as you've received all of your necessary documents - like 1099s, W-2s, receipts from charitable donations, etc., according to Atlanta bankruptcy attorneys. Why would you want to torture yourself early, you may ask? Because you have to do your taxes anyway - and the earlier you do them, the earlier you can get your refund (especially helpful for those of us in debt). With the government looking to stimulate the economy, you might be eligible for some new credits and deductions.

Continue reading "Atlanta Bankruptcy Attorneys Say Early Tax Filing Means Early Refund" »

Someone once said that the only certain things in life are death and taxes. Apparently, they forgot that we also have to eat.

After the mortgage, food is probably the biggest part of the budget for most folks, with the average family spending roughly $600 a month in groceries not to mention hundreds on eating out. It's also the most unavoidable part of most budgets, according to Atlanta bankruptcy attorneys. Like it or not, we have to eat - even when the cost of staples like bread, milk and meat are skyrocketing while our salaries remain stagnant.

But just because we have to buy groceries doesn't mean we can't find ways to cut costs. Changing just a few of your shopping habits can keep your pantry - and your wallet - from hitting empty.

Continue reading "Atlanta Bankruptcy Attorneys Offer Advice on Saving Money at the Grocery Store" »

By now, some of us are getting used to seeing footage of the horrific earthquake in Haiti. But there's more than one reason we shouldn't let ourselves become numb to those haunting images.

Not only do they remind us that there's work to be done to rebuild for millions of Haiti's survivors, but they remind us that it's time to be grateful for what we have. Our struggles with the economy in recent months have been real - but they also could have been a lot worse. Most Americans are in debt and millions are unemployed, in danger of losing their homes to foreclosure or both. That's no picnic, to be sure. But the truth is, most of us will go home to a hot meal and running water tonight. Most of us will have a roof over our head, whether we own or rent. And most of us will go home to our families. Most Haitians can't say the same.

I know getting out of debt is no easy task. If it was, we'd all be rich - or at least financially stable. But unlike the weather or geography, debt is something within our control.

Continue reading "Debt Is Easier To Control Than Many Think, Atlanta Bankruptcy Attorneys Say" »

At least it's romantic: Women today are marrying for love, definitely not for the money.

Until the early 1970s, women stood to gain financially from marriage, when they received a significant spike in income thanks to their husband's much larger salary (often times, the couple's only salary), according to Atlanta bankruptcy attorneys. But women have made great strides in education, income and independence. And, today, the roles have reversed. In the last four decades, income rose 60 percent for married men but just 16 percent for their unmarried counterparts, says the Associated Press. Where is all that money coming from? Women.

But here's the downside. As modern females, we might be empowered - but we aren't compensated fully for it. Despite boosting our husband's incomes, women are still only earning 78% of what our male co-workers are taking home. And much of that money is going to debt.

Continue reading "Atlanta Bankruptcy Attorneys Point Out that Marriage Doesn't Pay Off Financially for Women" »

Think those late payments are only hurting you? Think again.

Americans strapped for cash have been slow to pay their bills. And in turn, the people and businesses we're paying are slow to pay their own bills - slowing down the wheels of the entire economy, according to Atlanta bankruptcy attorneys. For example, a recent study showed that engineering and architectural businesses were paid an average of five days later in 2009 than in 2008, as mentioned in the New York Times. Tax preparers and accountants fared even worse, getting payments about 10 days later.

There's generally not much we can do as individuals to change the economy. But this might be the exception. By lowering debt so you can make on-time payments you not only help yourself, but you help the larger economic picture.

Continue reading "Atlanta Bankruptcy Attorney Advice For Avoiding Late Bill Payments" »

Last year's economy did a number on our finances - but it may have done a world of good for our attitudes, according to Atlanta bankruptcy attorneys.

It's welcome news, especially for the millions of Americans hoping to make 2010 the year to break free from debt. Last year, on the other hand, was a big career shakeup. Many of us changed jobs, lost jobs or saw a reduction in work hours. But we haven't simply adjusted by working harder in our newfound free time - we've begun making the most of it. We've started living larger on less money.

Sometimes that means cooking dinner for our families or finally tackling those books we've been meaning to read. Other times it means taking day trips around our home, working in our gardens and spending quality time with our kids. In other words, we're spending less time earning and spending, and more time actually living. Now we just need to get rid of that debt we accumulated before we simplified our lives - and bankruptcy can help us do it.

Continue reading "Atlanta Bankruptcy Attorneys Say Economy Can Help Make the Most of Our Money" »

Just because that scarf Grandma gave you isn't your style doesn't mean you can't get what you really want - or need - this Christmas.

With most folks struggling to make ends meet, there's nothing wrong with admitting you want to squeeze the most use out of your presents - especially when you've dropped big bucks on gifts for friends and family over the past several weeks. Fortunately, stores are giving us a break this year.

Retailers like Best Buy, Wal-mart, Sears and even Overstock.com are making it easier than ever to return or exchange gifts by extending deadlines and loosening formerly strict policies, according to an article on MSNBC.com.

Continue reading "Gift Returns and Exchanges Could Become Easier This Year" »

'Tis the season for giving, but if many of us don't curb our spending habits, the only thing we'll be giving is our home - back to the bank.

Just as the media was reporting in September that an economic recovery was underway, there were still roughly 4 million homeowners either in some stage of foreclosure or at least three months behind on mortgage payment, according to the Mortgage Bankers Association. Even worse, those foreclosures have been pushing down home values in the cities that are already struggling with the highest unemployment rates.

So why are things getting worse when they're supposed to be getting better? Maybe it's because, bad economy or not, consumers are plain out of cash. Many of us have gone without a raise for years - or worse, without a job for months. In the meantime, we're using credit cards to make ends meet, adding to our already bloated debt burdens. And now with the arrival of the holiday season we're struggling to put fancy meals on the table and gifts under the tree, adding even more financial stress. At some point, homeowners are throwing in the towel. But it doesn't have to be that way.

Continue reading "More Borrowers Default On Mortgages As Holidays Approach" »

I could swear that grocery prices inch higher every day, but apparently (and fortunately for my wallet) I'm wrong - the price of a Thanksgiving meal has actually declined this year. Don't believe me? The proof is in the (corn) pudding.

A survey by the American Farm Bureau Federation found that a family of 10 will pay just under $43 for a Turkey Day spread of bird, mashed potatoes, stuffing, cranberry sauce and the like - that's 4% less than last year and the first decline in nearly a decade. In fact, most food prices have dropped recently due to lower energy costs and the poor economy. According to an American Farm Bureau Federation economist, you can feed your family a hearty Thanksgiving meal for less than the per-person cost of dinner at the nearest fast food joint.

Now, $43 still isn't cheap when you've spent the rest of the year scrimping and saving and generally getting by on as little as possible. But hearing that prices are stabilizing - and in some cases, declining - sure is a relief. When you're struggling to make ends meet, it's easy to think the rest of the world is out to get you, be it the grocery store, the gas station, the mechanic or the doctor's office. But while prices may go up and down, you still have the ability to control your finances.

Continue reading "Consumers Can Be Thankful for Decreasing Grocery Store Prices" »

Even as headlines herald the end of the recession, it's hard to block out lingering negativity.

For instance, unemployment - currently at 9.8 percent, the highest in nearly three decades - isn't expected to peak for another six months. Call it a lag effect, if you will. Foreclosures have risen 5 percent since summer. Costs of health care, gas and groceries continue to increase. And in a recent Gallup Poll, the majority of respondents said they thought the economy was actually getting worse.

But there's still plenty of reason to be optimistic - even if it doesn't make the 5 o'clock news. First, realize that people naturally tend to think the worst during the bad times - just like we tend to be overly optimistic during the good times. I know I can get kind of gloomy on rainy days, while I'm generally happier on sunny days. It's so simple, but it makes sense. Second, as BusinessWeek puts it, recessions can pave the way for future growth by weeding out weak businesses and letting new and improved ventures thrive - sort of a survival of the fittest.

Third, there's something so motivating about a clean slate.

Continue reading "End of Recession Or Not, Get a Fresh Start" »

Yes, I know that April 15 has long come and gone. But 11 million taxpayers requested a six-month extension for their 2008 taxes, which means that - for many Americans - the real do-or-die deadline is this Thursday.

With money tighter than ever, it's understandable that so many of us are wracking our brains, trying to figure out how we're going to pay that tax bill. Or maybe we were able to scrape enough together to pay our taxes on time - but we're not sure we'll be as lucky less than six months from now when we do the tax dance all over again.

But here's some advice - even if you don't have the money, file anyway and worry about how you'll pay later. If you don't file, you'll start racking up penalties immediately after your deadline - sometimes up to 25 percent of what you owe. In the best case scenario, you'll owe a lot more money. Worst case scenario, you could wind up in jail. You're better off filing and only paying what you can afford, whether that's half your payment, 10 percent or - for the moment - nothing at all. The IRS can be surprisingly lenient. No, they won't forgive your debts - but they may let you work out an installment system or a way to lower your penalties.

Continue reading "Don't Wait Until It's Really Too Late To File Taxes " »

The recession might be bad for your spirits, but it turns out it might actually benefit your health.

It appears that periods of recession have the potential to increase lifespan, according to a study recently released by the University of Michigan. Researchers found that people who lived through the Great Depression actually lived longer than previous generations. In case you think it's just a coincidence, researchers found similar results across decades - including recent recessions in the 1980s and 90s - and countries.

They're not sure exactly what leads to the longevity, but it could be that people unwittingly adopt healthier habits when economic growth is slow. During a boom, it's all about keeping up with the Joneses. There's a lot of pressure to put in time at work. You manage to pay for gas and your car loan, so you drive everywhere. Maybe you've got some money to blow on stuff you don't necessarily need, like alcohol and cigarettes. You get the picture.

When times get tough, life is still stressful - maybe even more than before - but it slows down.

Continue reading "Recession Bad For Finances But Good for Health?" »

Some people look at today's economy as a curse. But more and more, I'm starting to see it as an excuse - a scapegoat that's holding us back from financial freedom.

In all fairness, I will admit that the state of the economy has an effect on our finances. It can contribute to a lost job (or trouble finding a new one), a home loan worth more than your house or the drastic decrease in the value of your investments. But it isn't the only effect. You know how good memories tend to strengthen with time, while the bad memories fade? Well, I think that's what has happened with the recession. We tend to forget that many of us had financial troubles before the economy went to hell in a handbasket.

Life wasn't always peachy prior to the recession. And it won't miraculously become peachy once the economy recovers (which could be soon, according to this Atlanta Business Journal story). But, believe it or not, that's actually a good thing.

Continue reading "Focus on Your Finances, Not the Economy" »