Atlanta Bankruptcy Attorney Blog

As Economy Improves, Many Consumers Are Still Weighed Down by Debt in Atlanta

Fri, 18 May 2012 18:32:54 -0500

The economy may be showing signs of improvement, but our finances are another story.

One in five U.S. families currently have more in debt than they have in savings, according to a recent USA Today report.

Even worse, some of us have no cash cushion at all. By the end of 2011, 23.4 percent of families reported having a savings balance of zero - up from 18.5 percent in 2009.

Despite our savings shortcomings, new research shows we have no plans to stop accumulating debt. This month, the Federal Reserve reported that consumer borrowing for car and school loans increased in March. Consumers also increased credit card use.

Meanwhile, median household income in the U.S. is still 7 percent lower than its 1999 peak.

Americans are caught in a vicious cycle. Not only are we spending more than we earn, but we're spending more than we have, period.

It's no wonder that thousands of homeowners say they expect to fall behind on mortgage payments any day now.

If we want to move beyond the recession, we've got to move beyond overspending. For millions of Americans, that means lowering debt. For those with overwhelming debt burdens, Atlanta bankruptcy is often the most realistic option.

Debt has the power to bog down every area of a person's life. As debt grows, so does the amount paid in interest and fees, requiring families to rely on more debt to make ends meet.

Maxing out credit cards leads to a lower credit score, which in turn leads to higher interest rates. Meanwhile, debt payments steal away funds that could be going to pay the mortgage.

By filing for bankruptcy in Atlanta, consumers can eliminate some or all of their credit card debt. With the burden of debt relieved, you'll be able to afford current bills - and catch up on delinquent ones.

Without savings, you don't have a safety net. One missed paycheck or unexpected bill could spell disaster. Bankruptcy can provide the protection - and peace of mind - your family needs to move forward.

To Fix Finances, Consumers Must Take Emotions Out of Decisions to Cut Costs, File for Atlanta Bankruptcy

Mon, 14 May 2012 17:29:24 -0500

If you had a broken leg, you wouldn't cross your fingers and hope it would heal on its own, right? You'd get yourself to a doctor - stat.

Yet most Americans take the first approach when it comes to our financial health. When faced with potentially crippling money problems, we routinely hold off on taking action in hopes that problems will solve themselves. Nine times out of 10, however, the situation only gets worse.

Part of the trouble is that we tend to let our feelings get the better of us. Since most folks view their finances as a reflection of themselves, it's difficult to look at the situation without emotion.

Just like consumers, businesses frequently face hard economic decisions. But instead of second-guessing and worrying over their every move, they take fast action - whether it's cutting costs, laying off workers, or filing for Atlanta bankruptcy.

Businesses don't do much hoping; they see problems and take the shortest route to a solution.

By becoming more business-like about finances, Atlanta consumers could take bigger actions - and make bigger impacts.

When you're unable to pay the mortgage, it's not enough to save a few hundred dollars a month the way you might do by adjusting your budget or getting a mortgage modification (assuming you are one of the lucky few who qualify for a loan mod, that is).

If you're buried in credit card debt or behind on house payments, you need a serious change - and you need one fast. Filing for bankruptcy has the power to quickly save consumers thousands of dollars every month - enough to change the course of your financial future.

As our Atlanta bankruptcy lawyers often point out, a dream without a plan is just a wish.

It takes action to make dreams come true. Filing for bankruptcy in Atlanta has the ability to stop foreclosure, restructure debt, and lower bills. From the moment you file, you'll feel noticeable relief.

Home Equity Loss Not the Real Cause of Homeowner Debt in Atlanta

Tue, 08 May 2012 12:17:55 -0500

Despite a rise in existing home sales earlier this year, the media reports that home values are still dropping - and that the decline may only get worse as banks began releasing a new round of foreclosures onto the market.

As usual, the negative news has sent homeowners into a panic over the thought of losing even more home equity.

But the American obsession with home value may be preventing us from seeing the real problem - and, thus, the solution - to our financial troubles.

As our Atlanta bankruptcy lawyers often explain to clients, primary residences were never meant to be investments.

In our parents' and grandparents' day, a house was a place to live, to raise a family, and to create a lifetime of memories. But as home prices soared at the approach of the new millennium, our perceptions began to change.

Americans stopped looking at houses as homes and began viewing them as a means for keeping up with the Joneses.

By taking out home equity loans and using skyrocketing values as an excuse to allow spending to exceed income, American consumers amassed an unprecedented amount of debt.

When home values began to fall, we used the loss of equity as a scapegoat for our debt troubles.

In reality, it doesn't matter what your home is worth unless you're trying to sell it. Home equity has nothing to do with a borrower's ability to pay the mortgage or fight off foreclosure.

Housing numbers are merely a distraction from the real source of the problem - our out-of-step finances. Simply put, we have too much debt.

But there's good news. Because financial troubles aren't caused by the real estate market, families don't have to wait for the market to improve to fix their finances. Often times, an Atlanta bankruptcy plan can stop foreclosure, halt wage garnishment, and eliminate most - if not all - of a family's debt.

Filing for bankruptcy can be an affordable way for Americans to protect their interests and find a fresh financial start.

Hoping to Ease Student Debt, Legislators Propose New Laws for Bankruptcy in Atlanta, U.S.

Wed, 02 May 2012 10:38:58 -0500

The last time Congress rewrote bankruptcy laws, it was to prohibit students from using bankruptcy to escape education loan obligations.

Now - in light of a $1 trillion student loan bubble - legislators are discussing the possibility of reversing that position, reports The Wall Street Journal.

Back in 2005, the government prohibited the discharge of student debt through bankruptcy, except when someone faced an undue hardship such as a physical disability that prevented the person from working, because of fears that students would simply walk away from their loans.

Since then, tuition has skyrocketed while enrollment has increased, resulting in a steadily growing student debt burden far larger than Uncle Sam could have predicted.

Between 2000 and 2010, the average student debt load surged 24 percent to more than $16,000. Students who attend private schools often carry balances of $100,000 or more.

Not only is the burden impacting the debt holders, but it's also threatening the stability of the entire economy.

With jobs scarce, many recent graduates have been unable to find well-paying positions - or in some cases, any job at all. In the past decade, earnings of young workers with a bachelor's degree have fallen 15 percent.

Many young adults are holding off on taking out car loans, buying homes, or making other economy-stimulating purchases.

These days, it's not a matter of whether students will choose to make good on their promises, but whether they will be financially able to make good on their promises.

By allowing bankruptcy in Atlanta and other regions to help students most in need, some politicians hope to stave off what's seen as the next big economic bubble.

Of course, even if a bill is approved, it will only apply to private student loans - not the government-backed loans that account for 90 percent of student debt. With as many as 27 percent of borrowers already delinquent on school loan payments, it may be too little too late.

But while an Atlanta bankruptcy filing can't discharge student debt directly, it may be able to help ease the pain by reducing other forms of debt such as credit card balances and medical expenses.

By lightening the overall load, bankruptcy can make it possible for young consumers to begin heading down the path to a brighter financial future.

As Housing Prices Stay Low Despite Increase in Jobs, Atlanta Bankruptcy Remains an Option for Consumers

Fri, 27 Apr 2012 11:25:04 -0500

Usually employment and the housing market follow one another. Not in Atlanta, however.

The good news is that, after increasing between 2007 and 2010, Atlanta unemployment is finally starting to ease. The rate has been falling steadily for seven months and has decreased nearly a full percentage point - to 9 percent - over the past year, according to the Atlanta Journal-Constitution.

Typically an increase in employment would be accompanied by an increase in housing prices. Yet the average sales price of an Atlanta area home was down 2.1 percent since the start of 2012.

Atlanta home values are currently at the lowest level since 1997. Meanwhile, market analysts are predicting values will continue to decrease this year.

As was recently reported in our Atlanta Bankruptcy Attorney Blog, banks have finally gotten back to processing foreclosures now that a settlement has been reached between U.S. states and the nation's five largest lenders. In metro Atlanta, foreclosed properties make up at least one-third of home sales.

Just because consumers have more money in their pockets doesn't mean they'll immediately be able to afford pricey mortgage payments.

Experts predict that, when the housing market does start to recover, the process will be slow. With damaged credit, uneven job histories, and little in the way of savings, most consumers will be hesitant to move into the home buying market.

Meanwhile, those who already have homes are still struggling to keep them.
Often times, it's credit card debt - not house payments - that makes paying the bills most difficult. For underwater borrowers who are delinquent or at risk of becoming delinquent, Atlanta bankruptcy can be a saving grace.

Those with steady incomes may qualify for Chapter 13 bankruptcy, which provides the freedom to prevent or stop foreclosure and reorganize many types of debt into a single repayment plan.

With the house protected and debt under control, homeowners can begin rebuilding credit and regaining control over finances.

The job market in Atlanta is finally breathing a sigh of relief. With bankruptcy, Atlanta homeowners may be able to do the same.

Families with Children May Be Biggest Victims of Foreclosure in Atlanta

Tue, 24 Apr 2012 00:00:08 -0500

New data suggests that as many as one in every 10 children in the U.S. has been or will be affected by the current foreclosure crisis. In hard-hit housing regions like Atlanta, the effects could be even more far-reaching.

According to USA Today, an estimated 2.3 million kids were residents in homes lost to foreclosure - and another 3 million are on the path to foreclosure because their parents are delinquent on payments.

The data was taken from home loans made between 2004 and 2008. Because it doesn't take into account mortgages made outside that time frame, actual numbers are likely to be even higher.

While the media tends to focus on struggling homeowners, the children of homeowners often have it even harder. Stability and security are important factors in a child's emotional well-being, and foreclosure disrupts that, according to the article.

Kids who move as a result of foreclosure suffer a drop in reading and math scores equivalent to declines seen by children who miss a month of classes. Students who move frequently are twice as likely to drop out before graduation.

Back in 2008, USA Today took a look at the toll losing a home can take on kids and teens.

Children of distressed homeowners may be more likely to exhibit behavioral problems, experience feelings of anxiety and shame, and suffer from health problems due to a lack of health insurance.

In addition, many children are also affected by their parents' emotional struggles. Foreclosure is a leading contributor to depression and divorce.

Often times, financial struggles are out of our control. Unfortunately, they can have a lasting effect on the livelihoods of our children. Many families are managing to maintain a stable home for their kids by filing for Atlanta bankruptcy.

Chapter 13 has the ability to legally stop foreclosure proceedings and other collection activities, providing families with much-needed time to reorganize debt. After a successful repayment period, remaining debts can often be eliminated.

In March, our Atlanta Bankruptcy Attorney Blog reported that more residents in Georgia are living close to the financial edge than those in any other U.S. state. If financial troubles and potential foreclosure are threatening the well-being of your family, an Atlanta bankruptcy lawyer can help determine if bankruptcy protection is an option.

As Housing Market Prepares for Post-Settlement Foreclosure Surge, Homeowners Turn to Atlanta Bankruptcy

Wed, 18 Apr 2012 22:37:07 -0500

It looks like the situation will get a bit worse for underwater borrowers before it gets better.

Following the recent approval of the $26 billion mortgage settlement, the real estate community is predicting a flood of foreclosures to hit the market this summer.
As a result, already-low home values are expected to fall by 3.7 percent by the end of 2012, according to CNN Money.

The settlement, made between U.S. states and the country's largest five mortgage lenders, sets forth new guidelines for banks to use when repossessing properties.

Lenders had previously put foreclosures on hold while their processes were investigated following the robo-signing scandal that broke in late 2010.

During this time, thousands of delinquent homeowners were allowed to continue living in their houses without making mortgage payments, as the average time it took a bank to foreclose on a property stretched to 370 days - and even longer in some states.

According to the article, up to a million foreclosures that could have been pursued last year were put on the shelf.

Now it looks like those days are over. In states where court scrutiny is required for home repossession, foreclosures are already up 10 percent in the first quarter.

Financial experts believe banks will move as quickly as possible to get the initial price drop over with so that the market can hopefully return to normalcy.

Struggling homeowners hoping the bank wouldn't notice a missed mortgage payment - or several - are out of luck. Fortunately, they aren't out of options.

Filing for Chapter 13 bankruptcy in Atlanta remains an often-overlooked but valuable way to protect a property and make mortgage payments - and other forms of debt - manageable.

Not only will avoiding payments eventually lead to foreclosure, but it will also cause damaged credit and a whole lot of stress.

With Atlanta bankruptcy, borrowers can put a stop to overwhelming debt with legal protection and a realistic repayment plan. The result is a chance to get out of debt and stay in your home.

Study Shows Banks Discriminate Against Minority Neighborhoods When Maintaining Foreclosed Homes in Atlanta

Fri, 13 Apr 2012 13:21:46 -0500

If you live in a minority neighborhood, it appears that banks may not deem it worth their while to clean up foreclosed properties in the area.

A recent study by the National Fair Housing Alliance uncovered what appears to be blatant racial discrimination on the part of big banks.

Foreclosed homes in several major U.S. cities - including Atlanta - were more likely to be maintained and marketed by banks if they were in predominately white neighborhoods than if they were located in neighborhoods where the majority of residents were black or Latino.

In Atlanta, it was discovered that bank-owned homes in black neighborhoods were 4.65 times more likely to be missing a "for sale" sign than in white neighborhoods. Nationally, homes in black neighborhoods were more than 80 percent more likely to have boarded up windows or doors.

Because abandoned properties with overgrown yards tend to drag down the value of neighboring homes, banks may be contributing to lower property values in minority neighborhoods.

When those homes do sell, those that have been kept-up poorly are more likely to go to investors than to families, putting further downward pressure on the values of nearby homes and limiting the number of affordable houses for people looking to buy.

First banks pushed unsustainable loans on minority communities. Then they refused to offer loan modifications or mortgage refinances. Now they're failing to do their part to care for properties lost as a result of those loans.

For those hurt by declining property values, bankruptcy often provides the relief that banks can't. Filing for Chapter 13 bankruptcy in Atlanta can restructure debts and unpaid bills into affordable payments over a period of 3 to 5 years.

Many Atlanta homeowners feel trapped because they owe more on their home than its current value. Just because selling or refinancing aren't possible doesn't mean that foreclosure is your only option.

Foreclosure doesn't have to be inevitable. Bankruptcy was created to protect consumers. An Atlanta bankruptcy lawyer can evaluate your financial situation to determine if bankruptcy can reduce your debts and save your home from foreclosure.

Co-Signing Parents Left with Credit Damage and Debt Turn to Atlanta Bankruptcy

Sat, 07 Apr 2012 15:10:07 -0500

Our debt problems are beginning earlier and earlier.

As recent news stories have illustrated, American students collectively hold one trillion dollars in student loan debt. In addition to school loans, most recent graduates leave school with the burden of credit card debt and car loans.

While this is bad news for young adults, it's also bad news for parents and grandparents.

Because few lenders are willing to take a risk on teens and 20-somethings with little credit history, adult relatives frequently co-sign credit cards and loans for young adults.

While co-signing is one way to help your child establish credit, it can backfire if your son or daughter can't make payments. In fact, co-signed loans are one reason that more Georgia residents are seeking protection through Atlanta bankruptcy.

A recent Business Insider articles estimates that three out of four borrowers defaults on loans, leaving the co-signers liable.

It's not that today's youth are especially irresponsible; it's just that, in today's economic climate, it's impossible to guarantee a young adult will have the income to make pricey payments. Tuition and the cost-of-living are skyrocketing, while jobs for students and new grads remain scarce.

If circumstances prevent the primary borrower from paying back the loan, the co-signer becomes responsible. As a result, lenders can go after your house, car, and life's savings. Meanwhile, the good credit you worked your entire life to build can quickly disappear. Your child will also suffer from a lowered credit score, but you'll be the one pursued by bill collectors.

Bailing out our children does nothing to teach them about managing money. In many cases, a more realistic solution is to lend a loved one money directly (if you can afford it, of course), reducing the need for an outside lender - and reducing the risk of credit damage and liability in the instance of a default.

For young adults over their head in credit card debt, filing for bankruptcy in Atlanta can offer a chance to start over on the right foot. Chapter 13 bankruptcy protection can reorganize debt with a payment plan, preventing default and protecting the co-signer.

Student debt poses a challenge because it is not eligible for release with bankruptcy. However, because bankruptcy can reduce other forms of debt, it may be able to free up funds for making school loan payments.

Young adults must often make financial mistakes to learn how credit really works. However, as adults, we shouldn't be paying for our kids' mistakes. If you're burdened by debt, whether it's someone else's or your own, Atlanta bankruptcy may provide relief.

Atlanta Bankruptcy Can Help Georgia Homeowners Delinquent on Mortgage Payments

Mon, 02 Apr 2012 03:02:27 -0500

We've all been there before. Our car breaks down and needs expensive repairs, we get a larger-than-anticipated medical bill, or some other unexpected expense pops up - and we wonder if anyone will notice if our bills are a little bit late this month.

But when it comes to the mortgage, a late payment almost always comes back to bite homeowners, according to a recent article in the New York Times.

While fewer Americans are falling behind on their house payments, many of us are still delinquent. As of late last year, one in eight homeowners was either at risk of foreclosure or already in the foreclosure process.

Financial experts expect delinquencies of 60 days or more to increase in the first quarter of 2012.

It all starts with a simple missed payment deadline.

How Payment Deadlines Work

Typically a mortgage payment is due the first of each month, though some lenders give borrowers a 15-day grace period.

Homeowners often hope their late payment will make it within this period. But if your check arrives after the cut-off time on the 15th day, you're out of luck, no matter when you wrote your check.

So what happens next? Lenders tack on a late fee that's 2-5 percent of your payment (your actual fee should be listed in your mortgage documents). Now you owe a late payment and penalty, plus your next mortgage payment, which may be due in just a couple weeks.

It doesn't take much for one late payment to turn into several.

How Late Payments Impact Credit

Your late fee is nothing compared to the damage done to your credit score. Once 30 days have passed, your lender must report your delinquency to credit bureaus, which transfer the discrepancy to your credit report.

A credit score drop by as much as 100 points for the first late payment, and will continue to decline as the days go by. Each missed payment can stay on your report for seven years.

Ironically, many homeowners avoid filing for bankruptcy to protect their home from foreclosure because they worry about how bankruptcy will affect their credit. However, filing for bankruptcy in Atlanta may be the only way that Georgia borrowers can get current on payments, thus avoiding future credit dings.

How Missed Payments Lead to Foreclosure

Homeowners who can get their payments back on track before falling 30 days behind have the best chance at recovering.

Once you're 120 days past due, the foreclosure process can be triggered. Getting current with payments before 120 days can protect your home, but the problem is that once homeowners fall this far behind, it can be nearly impossible to regain control because credit marks and fees have piled up so overwhelmingly

Whether you're days late on your payment or have already received a foreclosure notice, Atlanta bankruptcy may be your best chance at getting current. Chapter 13 bankruptcy has the ability to reduce credit card debt and organize your remaining debt into manageable payments.

The sooner you take action, the easier it will be to catch up - and start fresh.

As Tuitions Rise for Georgia Students, More Young People and Their Families Suffer from Overwhelming Debt in Atlanta

Thu, 29 Mar 2012 01:37:43 -0500

Georgia college students, like students across the nation, are increasingly relying on large student loans to cover the costs of university.

With tuition rising and jobs still scarce, more students are defaulting on their loans, putting their finances - and the finances of their families - at risk.

Ten years ago, Georgia covered 75 percent of the cost of educating each student. Today the state covers just 54 percent, with the rest of the cost paid by enrollees and their parents, according to a recent article in the Atlanta Journal-Constitution. And schools are spending more than ever, forcing students to pay more for education each year.

Of course, the problem isn't limited to Georgia. Some financial experts are predicting that student debt will become the next big bubble to burst following the mortgage loan crisis.

Our Atlanta bankruptcy attorneys have seen an increase in clients overwhelmed by student debt - and they're not alone. A recent survey of consumer bankruptcy attorneys found that 80 percent noticed a rise in people seeking relief from school loans.

Unfortunately, student debt can't be discharged through Atlanta bankruptcy like other types of debt.

Thanks to a U.S. bankruptcy law reform act in 2005, borrowers must now prove they have an undue hardship in order to have private student loans discharged. Essentially, you have to show you're disabled to the point that working for a living is impossible.

With the amount of national student debt ($867 billion) now exceeding the amount of national credit card debt ($704 billion), legislators such as Senate Majority Whip Richard J. Durbin (D-Ill.) are calling for new rules that would make educational debts eligible to be discharged with bankruptcy.

Meanwhile, though bankruptcy can't wipe out student loans, it may be able to relieve some symptoms of debt.

While the average student has roughly $25,000 in student loans, the average parent of college students is responsible for $34,000 in loans - and that number rises to about $50,000 over the typical 10-year loan repayment period.

As a consequence, many parents are at risk of losing their cars, their homes, and their life savings when neither they, nor their child, can pay the loans back.

Filing for bankruptcy in Atlanta can reduce or eliminate high-interest credit card debt, expensive medical bills, and other obligations. For families drowning in debt, lightening the load may make it possible to stay afloat on student loans and other necessary payments.

For Consumers Pushed Into Predatory 'Advance Loans' By Big Banks, Bankruptcy May Be Best Way Out

Sat, 24 Mar 2012 12:19:17 -0500

Banks are supposed to protect the money we deposit in checking accounts, not rob us of it. But that's exactly what they're doing with new short-term high-interest arrangements known as advance loans.

Big banks such as U.S. Bank and Wells Fargo are increasingly promoting the loans, which are offered through direct deposit checking accounts.

Their target market is consumers who are short on money between paychecks and need a quick infusion of cash to pay the bills. In exchange for the loan, banks require the payment in full after a short period, usually 10 days to a month - plus, on average, a $10 fee for every $100 borrowed.

Sound familiar? It's essentially the same formula as the infamous payday loan, which leads many people to file for Atlanta bankruptcy every year.

Because both payday loans and advance loans require a large payment very quickly, many borrowers end up having to take out a new loan just to pay the steep fees on the first loan. Before long, every paycheck is going to the lender - and the fees keep accumulating.

But while payday loan centers typically recover their payment with a post-dated check, banks can deduct what you owe the minute your paycheck is deposited into your account. If you were planning on making your mortgage payment or covering your credit card bill with those funds, you're out of luck.

Lenders claim the loans are meant to help people in financial emergencies, but critics say banks are simply looking for new sources of revenue to make up for debit and credit card fee limitations.

As more consumers fall prey to advance loans, consumer groups say, it could make checking accounts an unsafe place for money - prompting Americans to close their accounts and rely on expensive credit cards rather than cash.

Of course, even the worst credit cards have interest rates lower than payday and advance loans. It's estimated that the average bank customer ends up stuck in the loan cycle (i.e., owing the bank) for 175 days a year, during which time they may pay a 365% APR.

Whether they stem from a credit card or a predatory loan, high interest rates are a battle that most consumers can't win on their own. When you're stuck in the damaging debt cycle, Atlanta bankruptcy can be the best tool for breaking free.

Depending on your situation, you can either make manageable payments on your debts by filing for Chapter 13 bankruptcy or have most or all of your unsecured debts discharged by filing for Chapter 7 bankruptcy.

Either way, filing for bankruptcy in Atlanta gives you - and not your bank - control over your paycheck.

Credit Damage from Unpaid Medical Debt Prompts More to File for Atlanta Bankruptcy

Mon, 19 Mar 2012 11:05:45 -0500

For many Americans, the pain from medical debt lasts a lot longer than the pain from the illness or injury that caused it.

As a result, more Georgia residents are turning to Atlanta bankruptcy for much-needed relief.

It's already frustrating enough that healthcare costs are rising. But to make matters worse, hospitals overwhelmed by paperwork are increasingly sending bills to debt collection agencies.

As of 2010, it was estimated that 30 million Americans had been contacted by a company attempting to collect on a medical bill. However, many more may have unpaid medical debts and not even realize it.

A recent Associated Press story reports that more and more people are finding out about medical debt when they go to refinance their mortgage or take out a new loan.

In many cases, the debtors had been in the process of resolving a dispute with their insurance company - perhaps even over a billing error - without realizing the debt in question had been farmed out in the meantime.

By the time it becomes evident there's an unpaid bill on a person's credit report, the damage has already been done. Even if the bills have already been paid, the record of a collection agency can mar a credit report for years.

While many insurmountable medical bills stem from a lack of insurance, an increasing number of cases are caused by gaps in coverage. People may be properly insured, but co-pays and deductibles can still lead to bills that are difficult to pay.

Whether you can't afford your medical bills - or you can't afford the credit damage that has resulted from them - an Atlanta bankruptcy may be the most realistic solution.

Filing for bankruptcy in Atlanta has the ability to get all of your unsecured debts under control, from hospital bills to credit card debt. When overwhelming costs damage credit, bankruptcy can blaze the path consumers need to get back on track.

If you're considering bankruptcy to bounce back from medical debt, know you're not alone. It's estimated that 60 percent of bankruptcy filings are due to medical costs, according to CNN Health. In almost 80 percent of cases, filers have health insurance.

Having health care coverage isn't enough these days. For many people, bankruptcy can offer relief.

Georgia Residents Living Close to the Financial Edge May Find Security with Atlanta Bankruptcy

Tue, 13 Mar 2012 01:00:53 -0500

Residents of Atlanta and the rest of Georgia live closer to the financial edge than those residing in any other U.S. state, according to a recent study.

Corporation for Enterprise Development, a nonprofit educational organization, ranked Georgia residents as the most financially unsecure in the country, based on factors such as debt load, assets, and savings level.

However, that doesn't exactly mean that those in the Peach State are poorer than residents of other regions, say researchers. In fact, plenty of study participants were middle class consumers with well-paying jobs.

However, many are considered "liquid-asset poor," meaning they spend most or all of their monthly income and have little savings, often because of overwhelming debt.

Georgia residents frequently reported that they are just one or two paychecks away from being unable to pay their bills.

When you don't have a cash cushion to fall back on, all it takes is one misstep or instance of bad luck to send you spiraling downward into financial ruin.

Our Atlanta bankruptcy lawyers have helped many clients who were able to scrape by until the day a financial emergency struck. Without savings, they were suddenly forced to rely on credit cards and payday loans, usually with ridiculously high interest rates.

In some ways, being liquid-asset poor is almost more dangerous than living below the poverty line because middle class Americans often don't realize they're in danger - and thus don't make any preparations.

With wages flat and costs like healthcare, gas, and groceries all rising, spending your entire paycheck is just setting yourself up for trouble.

For Atlanta residents already drowning in debt, bankruptcy can be a saving grace.

If you've been put in a tight spot because of your lack of savings, Atlanta bankruptcy has the power to help you get current on your mortgage, eliminate payday loans, and get out from under the thumb of creditors - so you can bounce back from adversity no matter what.

Popular Myths Preventing Many Consumers from Enjoying Financial Relief with Atlanta Bankruptcy

Wed, 07 Mar 2012 09:32:23 -0500

It's been estimated that 18 million households in the U.S. could see an improvement in their financial situation by filing for bankruptcy, according to ConsumerAffairs.com. Yet well under 2 million actually take advantage of bankruptcy protection.

Many folks are so afraid of bankruptcy they end up missing out on the only practical solution for their debt problems.

Recently, Bankrate.com looked at the top myths that keep Atlanta residents and other Americans from finding relief. In many cases, struggling consumers fear further damaging credit, losing all their assets, and embarrassing themselves.

The sad reality is that many people who resist Atlanta bankruptcy often end up filing later anyway because they've run out of other options. By that time, their credit may be in the worst possible shape, they probably have no money left, and they may have lost their home to foreclosure.

Bankruptcy is a government-created legal proceeding to help consumers manage overwhelming debts while protecting their best interests.

Filing for bankruptcy in Atlanta won't be the solution for every family. Some consumers may be able to successfully alleviate troubles by cutting costs, getting a refinance or loan modification, or negotiating with creditors. However, these options are simply not possible for everyone.

When you're drowning in debt, bankruptcy protection can be a lifesaver. Read on for Bankrate.com's top bankruptcy myths - and the truths behind them.

You'll lose important assets

While Chapter 13 bankruptcy allows for readjustment of debt, Chapter 7 bankruptcy has the ability to eliminate many unsecured debts completely. This is why it's known as liquidation - and why many consumers fear it will require turning over their most precious personal possessions. In some cases, filers can be asked to give up assets. However, most people complete bankruptcy without losing any property at all. Each state has its own long list of exemptions - including everything from homes to retirement savings. If you're making payments on an item, you're legally allowed to keep it.

You'll wreck credit irreparably

One of the biggest reasons people avoid bankruptcy is worry about doing credit damage. Yet most people who file have a credit score that can't get much lower. It doesn't make sense to avoid bankruptcy in order to preserve credit when it may be the only action that allows you to start making the financial improvements necessary to rebuild credit.

You'll embarrass yourself

Yes, a bankruptcy filing is a public proceeding. But it's not going to be published in your local newspaper. If someone wants to find out if you've filed for bankruptcy, they'll have to either request a copy of your credit report or go to the bankruptcy court, look up your file number, and ask a clerk to view it. Unless you are a famous celebrity being investigated by a tabloid reporter, it's unlikely that someone is going to dig up details about your financial life. In many cases, bankruptcy helps keep a person's finances private by discreetly helping them get back on their feet before they suffer a foreclosure or have to resort to borrowing money from friends and family.