Atlanta Bankruptcy Attorney Blog

While many people believe that filing for bankruptcy is going to leave them with bad credit, the inability to get a loan and no way to ever own a house, that's simply wrong.

Walletpop.com offers five tips to rebuilding your credit, finances and emotions after filing for Chapter 7 bankruptcy in Atlanta or Chapter 13 bankruptcy in Georgia.

Atlanta Bankruptcy Lawyers have seen the financial freedom that people experience once they've been through the bankruptcy process and no longer have the burden of creditors calling and sending letters to their home or work.

The first thing people should realize is that if you're considering bankruptcy, you're not alone and you shouldn't be ashamed. Bankruptcy laws are designed to help people willing to help themselves. The No. 1 cause of bankruptcy in America is sky-high medical bills, which are often no fault of the person paying them. With the Great Recession stripping jobs from millions of people, it's no surprise that people are seeking bankruptcy protection in record numbers.

According to The Wall Street Journal, bankruptcy filings in Georgia increased 6.1 percent from 2009 to 2010. And according to the American Bankruptcy Institute, there were more than 353,000 personal bankruptcy filings nationwide in the first quarter of 2011. In Georgia in the last quarter of 2010, more than 20,000 people filed for personal bankruptcy protection.

Here are the tips:

Let go of the guilt and shame: Some people consider filing for bankruptcy a sign of failure or disappointment, but it usually isn't. With the economy and the devastated real estate market, it is actually a smart move and one that can ensure the financial stability of a family's household long into the future. Plus, medical bills and outside factors are typically the reasons for bankruptcy, not always poor credit management.

Reflect and Regroup: Take some time after filing for bankruptcy to reflect on why you were in the situation in the first place. If overuse of credit cards, splurging or other problematic activities were the cause, resolve to stop that in the future. Allow the bankruptcy process to help you and lean on friends and family for emotional support.

Create a realistic budget and pay existing bills over time: After bankruptcy, stay on top of your finances. Create a budget and live within your means. Don't try to keep up with the Joneses. Pay off bills and don't get stuck with interest penalties.

Pick a credit card that can help you rebuild credit: Sometimes, secured credit cards can help you build credit. Many allow you to deposit a certain amount that acts as a spending limit. But some don't report your payments to credit bureaus, charge high fees and some people may not qualify. So, be careful.

Separate fact from fiction about bankruptcy: Many people think that filing for bankruptcy disqualifies them for getting any type of credit for 10 years. But, in fact, many people get dozens of credit card offers just after bankruptcy. Some car dealers are willing to offer good interest rates and some can even get home loans shortly after bankruptcy is finalized.

Continue reading "Life After Bankruptcy in Atlanta Easier With Five Tips for Moving On" »

Consumer spending has been rapidly on the rise in 2011. That means the economy is rebounding, right? Well...not exactly, say Atlanta bankruptcy attorneys.

It turns out that most of the increase is actually due to - you may have guessed it - higher gas prices. Prices at the pump saw record increases in the past couple months, and it's only predicted to get worse. Talk about bad timing - economic growth was just starting to pick up in the last quarter. So how are we supposed to get back on our financial feet when prices keep going up?

Continue reading "Atlanta Consumers Spending More, But Higher Gas Prices Play a Part" »

Dealing with your own debt is difficult enough as it is. Why should you be harassed about someone else's?

It's not an uncommon scenario, say Atlanta bankruptcy attorneys. Even I've experienced it. Whoever had our phone number before us - a woman named Brandi - must owe some money, because when we first moved into our house we got several calls a week from debt collection companies. Fortunately, the calls have almost entirely stopped since we said we did not know anything about Brandi or her debts. But many of us have heard horror stories about (or have first-hand experience with) bold bill collectors who didn't give up quite so easily.

Continue reading "When Someone Else's Debt Burden Becomes Your Problem" »

Have adjustable-rate mortgages gotten a makeover? Lenders say the ARMs that once contributed to the housing market crash may now be an affordable option for Atlanta home buyers.

Back in the 90s, adjustable-rate mortgages made up the large majority of home loans. The problem was, many of these loans came with risky perks intended to lure borrowers - whether or not borrowers could afford them.

Some ARMs allowed for homeowners to defer making their full interest payments, leaving them with an unmanageable balance later on. Others adjusted to new, usually higher, rates every six months. Understandably, many people ended up defaulting on loans, kicking off a wave of foreclosures. By 2009, adjustable rates made up just 2 percent of all home loans. Now, they're on the rise again.

Continue reading "Atlanta Borrowers Taking Out Adjustable Rate Mortgages Again" »

First food prices, then gas - now it looks like ATM fees are on the rise. But the good news is, you can choose not pay the higher price, say Atlanta bankruptcy attorneys.

Currently, using another bank's ATM means about a $2.50 charge from the competitor bank - and a fee of $1-$1.50 from your own bank. But Chase recently shared its plan to hike ATM fees for non-customers in Illinois to an unheard-of $5 per transaction. Rates in Texas, another state involved in the trial, will increase to $4. That means that, for a simple $20 withdrawal, you would be paying 20-25% interest - or 30% interest when you include the charge by your own bank.

Financial wisdom has long held that you can get more with cash than with credit, because you don't have to pay a premium - i.e. credit card interest - to use paper money. But if customers simply roll over and pay these crazy new rates, we could lose the freedom to save money with cash.

Continue reading "Big Bank Raises ATM Fees for Struggling Consumers in Some States" »

It turns out that filing your income taxes can save you money - even if you don't get that refund.

Have you ever gotten a late fee, but not remembered missing the payment? Have you ever gone to return something you just bought - and found you've already lost the receipt? Tax season is the one time when we're forced to organize our receipts, bank statements, and other important documents. If you can figure out how to maintain that organization all year, not only will you be more prepared when the next April 15 rolls around, but you'll have an easier time paying your bills on schedule, making a budget, and even improving your credit, say Atlanta bankruptcy attorneys.

Continue reading "How Atlanta Taxpayers Can Lower Debt By Getting Organizing For Taxes" »

When debt is spiraling out of control, the first thing most folks do is cut out unnecessary purchases. But for a population of consumers known as binge shoppers, it's just the opposite, say Atlanta bankruptcy attorneys.

Similar to the way a person trying to lose weight might pig out on a whole cake or bag of potato chips, binge shoppers blow off steam by hitting the stores. The average person can turn that out-of-control feeling that comes from opening a too-big bill into motivation for getting a better grip on our finances. But emotional spenders deal with the stress by increasing unneeded expenditures - more shoes, more electronics, more toys for the kids, more stuff for the house, more of everything.

The high shoppers get is a momentary escape from the reality of debt - with 'momentary' being the key word here.

Continue reading "Shopping Binges Make Debt Worse For Overspending Atlanta Consumers" »

For many underwater homeowners, getting a foreclosure notice in the mail might seem like the end of a long fight. But it's not over until the fat lady sings - or in this case, the judge.

Bankruptcy provides homeowners with a last chance to avoid foreclosure by getting non-mortgage debts under control. As soon as you file your paperwork, bankruptcy stops the foreclosure process while your Atlanta bankruptcy attorney and your bankruptcy judge work out an agreement with your lenders. Most at-risk homeowners ignore bankruptcy because they fear it won't work - or that it will hurt their credit. But according to a recent article on MSNBC.com, it can actually be a blessing in disguise.

Continue reading "For Atlanta Homeowners, Bankruptcy Can Be Last Chance to Stop Foreclosure" »

At first glance, this year's average tax refund of $3,000 might seem like a lot - but for most Americans, it won't last long.

If you simply put your check in the bank, it won't be long before its whittled away by things like rising gas prices and food costs, growing credit card bills and health insurance premiums, and the occasional shopping spree. But there's a way that many of us can stretch our refund, say Atlanta bankruptcy attorneys. How? By using it to get rid of current debt - and prevent future debt.

Continue reading "How Atlanta Taxpayers Can Boost Their Tax Refund" »

Has grocery shopping been leaving you with sticker shock lately?

You're not imagining things - food prices are creeping upward thanks to a variety of factors, from higher oil prices to rotten weather. To make matters worse, most Americans are still reeling from the recession and dealing with debt. Today's rising food and gas prices can feel like the last straw. But while we can't exactly cut food out of our budget, we can lower costs, say Atlanta bankruptcy attorneys.

Continue reading "Atlanta Consumers Battle Rising Prices At The Supermarket" »

The average rewards card is designed to get consumers to use more credit. But what if it were the other way around?

A new credit card introduced by TD Bank offers an incentive for credit users to lower debt. Instead of giving perks for travel or shopping - which encourages customers to pull out the plastic - this 21.24% APR card offers an interest rate discount for paying more than the minimum each month. In theory, consumers will have more reason to save their money for paying off debt, say Atlanta bankruptcy attorneys.

Continue reading "New Rewards Card Helps Atlanta Consumers Lower Interest" »

The good news is that the recession has given many people an excuse to go back to school. The bad news? Some of us are paying dearly for it thanks to a recent spate of financial aid scams, say Atlanta bankruptcy attorneys.

Maybe we have more time on our hands thanks to unemployment. Maybe we're realizing that we need a certain degree to be competitive in our job market. Whatever the reason, a record number of Americans are enrolling in college. But how do we pay for it? With average tuition soaring over $12,000, it's no surprise that most students need some sort of financial help for school. And scammers are taking advantage, according to WalletPop.

Continue reading "Atlanta College Students Falling For Financial Aid Scams" »

American consumers say the economy has changed their spending habits for the better - but is the change permanent?

While 63% of people in last year's Citigroup survey reported that the recession has had a positive effect on their spending and saving behavior, only 52 respondents say the same today. Perhaps now that incomes are rising once again, we feel a little more secure. And maybe some of us are so used to the new economy that we've become numb to possibilities that once struck fear into our hearts - like pay cuts and layoffs. That's understandable. What's not so understandable? The fact that consumer debt is increasing, say Atlanta bankruptcy attorneys.

Continue reading "Are Improved Financial Habits Falling By The Wayside As Economy Picks Up Steam?" »

Many parents are shocked to find credit card offers addressed to their children in the mail - yet they don't think twice about signing their kids up for prepaid debit cards.

Credit card companies are smartly marketing prepaid cards as an easy way for parents to teach teens about money. We load a certain amount of money onto the cards, and our kids have to figure out how to budget it. But here's what they don't tell us. Prepaid cards come with as many - or more - fees as regular credit cards, say Atlanta bankruptcy attorneys.

By signing your children up for plastic at a young age, you may be putting them on a path to future credit card debt. While their name contains the word "debit," prepaid debit cards are not the same as the debit cards tied to your bank account. Creditor-issued cards come with a slew of start-up and use costs, like activation fees, maintenance fees, fees for purchases and reloading -even dormancy fees. From the start, you're showing your kids that they need to pay to, well, pay.

Continue reading "Teaching Kids Money Basics Can Prevent Chronic Credit Card Use" »

Just like early birds get the fattest worms, early tax filers might get the fattest tax refunds.

Even though Uncle Sam is extending this year's tax deadline from April 15 to April 18 due to a Washington holiday, taxpayers may want to file early this year, explain Atlanta bankruptcy attorneys - particularly those who think they're going to be getting money back. This Tuesday, the IRS began accepting returns, even for taxpayers planning on itemizing deductions (though most of us can file as soon as we receive our W2 and 1099s, itemizers had to wait a bit longer this year while the government put some tax law changes into effect). Maybe the idea of doing your taxes now doesn't exactly have you jumping up and down - but here's why it should.

Continue reading "Filing Early Tax Return Can Mean More Money For Atlanta Taxpayers" »