Atlanta Bankruptcy Attorney Blog

A marriage-wrecking infidelity doesn't always involve another person. For many couples, it involves a credit card.

More than half of people who share finances with a partner admit to lying about a purchase, according to a survey by the National Endowment for Financial Education. And 31 percent surveyed cop to being downright deceptive about money.

Debt has a habit of spiraling out of control when untended. Living with too much debt is difficult enough when you're the only one affected - but when you share financial responsibilities with someone else, things really get complicated.

For many Georgia couples, filing for a bankruptcy in Atlanta is the best way to eliminate debt - and save their marriage.

Many times, Atlanta bankruptcy lawyers have watched marriages fall apart because one spouse or partner was keeping financial secrets for years.

The longer one person hides a purchase or debt, the more likely it is that the problem will become unmanageable. Often times, the spouse hiding financial troubles feels anxious, helpless, and depressed. And of course, when the cat is let out of the bag, the partner kept in the dark is likely to feel resentful and angry.

When people have different money priorities, it can be difficult to repair a relationship damaged by financial infidelity. But if you have the same money goals, it's possible to work together to overcome debt and get back on track. Bankruptcy can help.

This Valentine's Day, perhaps it's time to have a heart-to-heart with your husband/wife or boyfriend/girlfriend about the state of your finances. It might not sound romantic, but it may be the best thing you can do for your relationship.

Couples who work together are more likely to succeed financially - even if it takes hard work to get there. After all, two heads are better than one.

Even better, consider seeking advice from a financial expert such as an Atlanta bankruptcy attorney. Many couples are able to eliminate most or all of their unsecured debts with a Chapter 7 or Chapter 13 bankruptcy.

Meanwhile, here are some relationship tips from CNN Money.

Discuss Money Before Marriage

Once you're married, what's yours becomes ours. It's important that couples are honest with each other about their financial situations and priorities. A problem like student loans or credit card debt doesn't have to be a deal breaker - and it can be overcome if you work together. But if you're hoping to save up for a house while your significant other is a chronic over-spender with no plans to change, you may never be on the same page financially.

Know the Warning Signs of Debt Denial

People hiding their financial behaviors often exhibit red flags. For instance, they may hide credit card bills so that you can't see the balance. You may find shopping bags with recent purchases stashed in the closet. You might see more bills arriving more frequently. And often times, you'll notice that your partner becomes irritated when you bring up finances. All of these signs indicate it's time to talk about money. No matter how large the debt troubles, bankruptcy may provide a solution.

Go Over Your Finances Together

One of the best ways to prevent debt from spiraling out of control is to manage your money together. Sure, it's fine if one spouse handles the bill paying, but you should both have an idea of how much money is being spent and saved. Make a point to go over your bills, bank account, and credit report periodically so you're both on the same page. You can access one free annual credit report from each of the three credit bureaus from AnnualCreditReport.com.

Continue reading "Credit Card Debt Takes a Toll on Marriage for Many Atlanta Couples" »

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" »

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" »

Has your spouse been cheating on you - with his credit card?

Now that the most romantic holiday of the year is officially over, maybe it's time to look a romance-killer - debt. Earlier this month we discussed the fact that, thanks to the recent recession, more and more couples are hiding money troubles from each other. With half of marriages ending in divorce - and almost half of those divorces caused by money problems - it's never been more important to understand how your partner's financial baggage can affect your relationship, for better or for worse, say Atlanta bankruptcy attorneys.

Continue reading "When Debt Comes Between You and Your Spouse" »

Forget a box of chocolates. The best present you can give your significant other this Valentine's Day is your faithfulness - financial faithfulness, that is, say Atlanta bankruptcy attorneys.

Relationships these days are just as likely to be damaged by financial cheating as by adultery. According to the Minneapolis Star Tribune, more than 50 percent of people report buying something their partner didn't approve of - and 30 percent admitted to hiding said purchase. It seems that when the economy took a nosedive, so did honesty.

None of us get married with the vow, "until debt do us part." So how is it that so many of us are ending up with deep, dark financial secrets?

Continue reading "Is Hidden Debt Taking a Toll On Your Marriage?" »