Atlanta Bankruptcy Attorney Blog

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" »

More bad news out of Atlanta, this time from The Atlanta Journal-Constitution -- the newspaper reports that the metro area's unemployment rate went up again in August, from 10.3 to 10.4 percent.

That may not seem like a big jump, but what it shows is that the local economy, like the national economy, isn't getting any better. Layoffs in construction, food services, accommodations, trades, and administration and support staff have left people scrambling for jobs.

Unemployment continues to negatively affect the U.S. economy, and the Great Recession is leaving some people to think about a future with less money or even a complete lack of income. For many consumers, it's a matter of trying to get by, as they are attempting to pay back bills with side jobs, selling assets and taking advantage of other strategies.

But this probably isn't working. They are slipping further and further into debt as interest rates increase, making minimum payments on purchases that result in the merchandise or service being even more expensive, and for some falling behind on mortgage payments. Unfortunately, this situation often leads to foreclosure in Atlanta. But these people should take the time to consult with an experienced Atlanta bankruptcy lawyer who can explain the benefits of bankruptcy and the options consumers have at their disposal.

Bankruptcy laws are some of the only laws that are designed to help protect the consumer. They were enacted in order to give people a second chance after experiencing unforeseeable problems such as job loss, overwhelming medical expenses, predatory lending practices, or poor spending habits. All of these situations could be relieved through bankruptcy.

Mounting debts can be discharged, for instance, and those who own a house can often stay in their homes while the process is ongoing. In many cases, a person can have all of his or her debts relieved, making it possible to move on with life after the process is completed in much better shape than when they filed.

According to the newspaper, Clayton County had the highest jobless rate at 13 percent in August in the area. Clayton County is followed by Fulton County at 11 percent, DeKalb County at 10.8 percent, Cobb County at 9.6 percent and Gwinnett County at 9.3 percent.

In the city of Atlanta, the jobless rate was 11.7 percent, which was up slightly from 11.5 percent in July. Statewide, the jobless rate is 10.2 percent. This is the 49th consecutive month that Georgia has exceeded the national unemployment rate, which stands at 9.1 percent.

Not having a job can be terrifying, and it's obvious that little is being done to bring new companies and new jobs to Georgia. It is painfully apparent that citizens here continue to struggle to find employment opportunities, while residents of some other states may have more choices to find meaningful work.

Many people choose to try to squeak by with minimum payments, while dealing with hounding collection agency workers and harassing bank officials. But there is a better way through bankruptcy, which stops creditors from calling while the process is ongoing. And after debts have been discharged, the consumer can again live his or her life free from the debt that has trapped them for much of the last few years.

Continue reading "Atlanta Bankruptcy an Option as Georgia Jobless Rate Increases" »

Remember the paycheck raise you got back in January? No? You're not the only one.

In 2011, Uncle Sam boosted most people's paychecks by rolling back Social Security payroll taxes from 6.2 to 4.2 percent. Less money withheld meant fatter paychecks. But unfortunately, most of us haven't even noticed, say Atlanta bankruptcy attorneys. That's because the rapidly-rising cost of living is canceling out our federally-funded raise.

Continue reading "Payroll Tax Cut Canceled Out By Increasing Food and Fuel Costs" »

Many workers hoping for a bonus from their employers this month received something a lot less pleasant: a memo stating that their health insurance premium will go up next year.

Health insurance companies are raising rates on employers, who are in turn passing the costs on to us. Insurers often place blame on expenses associated with healthcare reform, but the truth is, health costs have increased every January for years. We should be used to it by now - but that doesn't make it any less painful for those of us who are already struggling to pay the bills as it is, say Atlanta bankruptcy attorneys.

Fortunately, we still have some say in the matter.

Continue reading "Health Insurance Companies Increase Premiums for Atlanta Employees" »

What would you do with an extra $1,000 or more a year? You might be about to find out.

Part of the tax plan between President Obama and Congressional Republicans includes a 2 percent cut in Social Security payroll taxes. So if you're making $60,000 annually, for instance, you'll get to keep an additional $1,200 of your income each year. In the great scheme of things, it might seem like a fairly insignificant amount - but it depends on how you use it, say Atlanta bankruptcy attorneys.

Continue reading "Tax Cut Agreement Could Help Atlanta Workers Lower Debt" »

They say home is where the heart is - maybe it's time to put our money there, too. At least, that's the theory behind Small Business Saturday.

Never mind that the campaign, which starts today, is backed by credit giant American Express - who happens to be offering an incentive in the form of $25 credit to the first 200,000 folks who register their AmEx cards on the SmallBusinessSaturday.com. It's a way to pump money into the local economy - and in theory, back into our own bank accounts. And that's good news for those of us with debilitating personal debt, say Atlanta bankruptcy attorneys.

Continue reading "Atlanta Consumers Encouraged to Shop Local and Save Money Today" »

The Great Recession really is over - if you listen to the National Bureau of Economic Research, that is. But if you're like many Americans, you might beg to differ.

Based on GDP, employment rates and earnings, economists claim the recession ended last June, over 15 months ago, say Atlanta bankruptcy attorneys. But to folks still overwhelmed with credit card bills, limited income and a mortgage payment, the cloud of economic doom feels far from being lifted. So what's the truth? Turns out, the truth is what you make it.

Continue reading "Recession Not Over Yet for Atlanta Consumers Struggling With Debt" »

What's the secret to making it through this ongoing recession? According to a recent study, it's quite possibly being a woman - particularly a woman in Atlanta.

After decades of trailing men in paycheck size, women are finally closing the wage gap - and then some, say Atlanta bankruptcy attorneys. Females between 22 and 30 years old are earning 8 percent more than men on average, according to a study by Reach Advisors. And in Atlanta, young women are earning more than 20 percent more than their peers. For those of us women who are struggling to pay down debt, knowing that a bigger paycheck is within our reach can be just the motivator we need to take charge of our finances.

Continue reading "Atlanta Women Earn Some of the Highest Paychecks in the Country" »

As if it's not bad enough that we may fall victim to yet another recession, we also have to worry about falling victim to double-dip scams.

With the economy looking poised to take another nosedive, more folks than ever are dealing with recession-related difficulties - things like getting laid off, losing our homes to foreclosure and struggling to pay the bills. And scam artists are taking full advantage, say Atlanta bankruptcy attorneys. Fraudsters know many of us will do anything to earn a steady paycheck or save our home, including giving them our hard-earned dollars.

Fortunately, there's a way to tell the scams from the real deal.

Continue reading "Ways Atlanta Consumers Can Avoid Double-Dip Recession Scams" »

If you've managed to keep your job in this economy, you probably already consider yourself lucky. But now consider yourself luckier.

As it turns out, the recession might actually offer positive benefits to the employed. According to the New York Times, wages are up, inflation is down and layoffs have all but leveled out. That means that, if you play your financial cards right, you might be able to walk out of the Great Recession in better shape than you walked into it.

Continue reading "Slow Economy Might Pay Off for Atlanta Workers" »

Being optimistic is one thing; being in denial is another. And unfortunately, it seems that millions of American workers are currently in denial about the job market.

It's not that folks are naïve enough to think they won't lose their job. On the contrary, 55 percent of Americans are worried that they could soon be out of work, according to MSNBC.com. And for one in 10 of us, that worry will come true.

The problem is that - even though we know getting laid off is a distinct possibility - we aren't doing anything to prepare for it. But by not preparing for it, we're making the worst case scenario, well, worse.

Continue reading "Building an Emergency Savings Fund Can Help Atlanta Workers Survive Job Loss" »

Just when we think the economic downturn might be safely behind us, economists start talking about a double-dip recession. Talk about bad timing.

Thanks to unemployment, the dire debt situation in Europe and an unstable housing market, it seems that the current economic recovery might not stick. For folks who have been barely scraping by for the last couple years, the news is understandably discouraging. But the truth is, the economy has always been unpredictable - this is nothing new.

Instead of focusing on whether things get better tomorrow, in six months, or in two years, why not focus on what we can do to make them better? You don't have to wait for the economic green light to improve your credit, lower debt or start a savings plan, say Atlanta bankruptcy attorneys. But if you do those things, you'll be better able to handle another downturn - and you'll be better poised to take advantage of the economic upturn, whenever it comes.

Continue reading "Atlanta Consumers Ready Finances for Potential Double-Dip Recession" »

You've got a killer resume, you nailed the job interview and you know you'd be perfect for the position. So why didn't you get the job?

The answer might be in your wallet, according to Atlanta bankruptcy attorneys.

Potential employers often request a copy of an applicant's credit report. And if they see too much credit card debt and a history of late payments, it's going to reflect poorly on your character - no matter how responsible and hard-working you might be on the job.

Debt doesn't just impact your finances - it can affect every aspect of your life, including work. Fortunately those effects are reversible. But before you can devise a solution, you have to identify the problem.

Continue reading "Credit Card Debt Can Keep Atlanta Job Seekers from Getting Hired" »

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" »

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" »