Atlanta Bankruptcy Attorney Blog

Spring brings April showers and then May flowers, but it also brings something a lot less pleasant: pain at the pump.

When the temperatures slowly start to go up, so do gas prices. So far this month, the average cost of gas is up 9 cents and is edging ever closer to $3 a gallon - that's 81 cents more than last year, according to AAA.

But there's a silver lining - and it's not just warmer weather. As it turns out, the same economy that is causing Atlanta residents and others to struggle financially is also lowering demand for gas, say Atlanta bankruptcy attorneys.

With unemployment soaring - the Georgia unemployment rate is 10.3 percent as of January - less people are driving a car to work, meaning less people are buying oil. Economists say gas prices might level off at not much over $3 a gallon this summer. But even if they don't, there's more good news. You can minimize the effects of higher gas prices on your own.

Continue reading "Atlanta Drivers Search for Cheap Gas Prices as Oil Costs Increase" »

What if you had two choices: Pay the mortgage each month, or pay your credit card bill?

In the past, choosing was a no-brainer - put the money towards the roof over your head. But increasingly, Americans are starting to prioritize credit cards, meaning the mortgage gets left by the wayside, according to Atlanta bankruptcy attorneys.

So what's changed? To start, the housing market. With one in every four homeowners underwater on their mortgage - and thus having no equity in their home - paying off a home loan can feel like throwing money away. On the other hand, paying the credit card bill allows us to keep using plastic to cover food, gas and clothes even when we aren't bringing home enough bacon to afford them.

But even though our new priorities make sense under the circumstances, it doesn't mean they're the best - or only - choice.

Continue reading "Atlanta Bankruptcy Attorneys See More Homeowners Default on House Than On Credit Card" »

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" »

Contrary to homeowner hopes, Uncle Sam's $75 billion mortgage modification program may be causing more bad than good.

Created early last year, the program was supposed to encourage banks to modify loans of the millions of Americans facing foreclosure. Unfortunately, it's managed to permanently modify just 35,000 - a drop in a rather large bucket, when you consider that 15 million U.S. homeowners are underwater, meaning they owe more on their loan than their house is worth. And of the homeowners that did get help, many went into foreclosure anyway since the program only required banks to lower mortgage payments - not to restore any equity.

But the biggest problem isn't that the program is failing - it's that it's given folks a false sense of security. Many homeowners held out hope that the program would save their home, so they didn't take preventative measures that could have stopped foreclosure, such as Chapter 13 bankruptcy. Fortunately, there may still be time, according to Atlanta bankruptcy attorneys.

Continue reading "Atlanta Bankruptcy Attorneys Warn That Government Mortgage Program Is Increasing Foreclosures" »

Citibank is giving a few thousand Americans the ultimate Christmas gift this year. Problem is, there isn't enough to go around.

The megabank recently announced it would put foreclosures and evictions on hold for some 4,000 homeowners this holiday, according to MSNBC.com. The break applies to homeowners with Citibank-owned loans and lasts through the middle of January.

It's intended to reduce stress during this already crazy time of year, said a company spokesman. And I'm sure it will for those 4,000 people, temporarily anyway. But what about the millions of other Americans that are on the brink of losing their homes?

Continue reading "Bank Lets Some Homeowners Stop Foreclosure This Christmas" »

'Tis the season for Christmas cards and phone calls from family and friends, but some of us are receiving more hostile greetings over the phone and in the mail this season - from bill collectors.

Unlike most folks, bill collectors don't like to give breaks over the holidays. When you're late on your debt payments, it's their job to bully you into coughing up the cash. That means calls at home and work and letters in the mailbox - even after you've explained the circumstances that are currently preventing you from paying.

But though it might feel like they've got you surrounded with no way out, you still have rights. And with help from a professional bankruptcy attorney, you might be able to silence those bill collectors for good.

Continue reading "Put a Stop to Harassing Creditors With Bankruptcy" »

'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" »

If you're facing foreclosure, you're officially running out of excuses. But that's good, right?

Just this week, Congress decided to extend the tax credit for new homebuyers beyond its original Nov. 30 deadline. That means you could be eligible for $8,000 back on your taxes when you purchase a property. Better yet, the government has taken note of the thousands facing foreclosure by expanding the initiative to include people who have already owned their houses for five years or more - if that's you, there might be a $6,500 tax break in your future.

Along with the tax credits, Uncle Sam also agreed to extend unemployment benefits for 14 weeks (even longer in states where the unemployment rate has reached 8.5% or more). It's not ideal, but it's a start.

Financially, we've come a long way since the so-called "great recession" began -- and Americans might be more aware of opportunities for financial freedom than ever before.

Continue reading "New Credits, Extensions Available for Homebuyers and Unemployed" »

The most popular - yet elusive - Christmas gift this year is too big to wrap. In recent months, potential homebuyers have been scrambling to take advantage of the temporary homebuyer tax credit of up to $8,000 before it expires on Nov. 30.

But you don't have to rush into buying a house before you're ready (if you'll recall, it was too much debt that got us into this mess - and a house is about the biggest, albeit most important, debt you can take on). Nor do you have to feel that you missed the boat if your financial situation won't allow you to plunk down a down payment right now. Here's why.

First, Congress is currently debating whether to extend the credit through March 2010, then phase it out slowly. Second, mortgage rates are at record lows and affordable homes are at record highs. Third - and maybe most important - there's another way to save big bucks on that down payment. And you don't have to wait for government approval to get it.

Continue reading "Temporary Tax Credit Isn't the Only Way to Save on Your Mortgage" »

Halloweens shoppers this year will spend billions of dollars on spooky costumes, gruesome props, and spine-tingling horror movies in order to scare ourselves silly. But I bet none of our creepy exploits will induce as much dread as we get opening the mail box and seeing (blood-curdling shriek) our credit card bill!

Or mortgage bill. Or, worse, a notice of foreclosure. You fill in the blank. But despite our fears, many of us refuse to consider a solution that can free us financially, like bankruptcy. Why? Because, as anyone who's ever been afraid of the dark can tell you, it's what we can't comprehend that frightens us the most.

Bankruptcy has frightened consumers for ages. Usually, they're afraid bankruptcy will tarnish their reputation or wreck their credit. And maybe it did in the olden days - back when women were considered risqué for showing their ankles and people only bathed once a month - but fortunately our culture has become a lot more sophisticated now.

Continue reading "Get Over Your Biggest Financial Fears This Halloween" »

The bad news: more consumers are filing for bankruptcy. The good news? More consumers are filing for bankruptcy.

Personal bankruptcy rates were 41 percent higher this September than they were a year ago, according to the American Bankruptcy Institute. Now, a surge in bankruptcy filings certainly isn't something to jump up and down about because it indicates the economy isn't doing so hot. But we all knew that already. Yes, unemployment is approaching 10 percent. Millions of homeowners - some who have already had their home loans modified - are facing foreclosure. What's new?

So let's focus on the good news. More folks turning to bankruptcy means more folks getting the debt relief they so desperately need.

In the past, people have notoriously avoided bankruptcy at all costs - including the loss of their home - because of a myth that bankruptcy is a last-ditch effort that does as much bad as it does good by damaging credit and your good name. But if there's a silver lining to this recession, it's that people are starting to realize what a useful - and effective - tool bankruptcy can be.

Continue reading "Bankruptcies Increase as Americans Seek Debt Relief" »

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" »

Move over, baseball. Watching home values seems to be the new American pastime - at least where I live.

Just like a sports fan knows all the scores and stats, my friends know every time a nearby house goes for sale - and for how much. They check Zillow.com constantly to see if their homes have dropped or gained value. They grab the real estate section of the paper first-thing every morning. If prices haven't changed, they're happy; if they've gone down, they're sad.

I can sympathize with their obsession. Home values in my state spent the last couple decades skyrocketing. And then the bottom fell out of the market a few years ago. People who bought at "the wrong time" got burned - some saw their homes' values fall to nearly half the price of their mortgage. But where they see a loss, I see potential.

You see, home values are a lot more like the stock market than a sports game. How? Because prices are meaningless until you sell.

Continue reading "Why Finances Are More Important Than Home Prices" »

Remember those Magic Eye pictures? On the surface, they looked like a bunch of colored dots. But once you let your eyes adjust, you could finally see the scene hidden inside. You could finally see the whole picture.

Well, the foreclosure crisis is turning out to be a lot like those images. On the most obvious level, the problem appears to be that people are losing their homes because their mortgage payments are too high. Fittingly, the government is handling the problem by encouraging banks to modify loan terms - in theory, this would make house payments more affordable.

But it's not working. Foreclosures are still on the rise. It doesn't make any sense - until you discover that the whole picture is a lot more complex. It's not just that homeowners are struggling to pay the mortgage. It's that they're struggling to pay the mortgage...and the credit card bills and the medical expenses and the tax debts.

Continue reading "Bankruptcy Can Stop Foreclosure By Addressing Other Debts" »

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

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

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

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

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