Atlanta Bankruptcy Attorney Blog

Atlanta Bankruptcy May Help Consumers Plagued by Wave of Mortgage Errors

Wed, 01 Feb 2012 03:00:48 -0500

It's bad enough that countless people are losing their homes because they can't pay the bills. But imagine the frustration of finding out you're losing a home you've paid off.

As banks rush to push through millions of foreclosures in 2012, errors are increasingly leading to foreclosures, lawsuits, and credit damage for consumers who are current on their loan payments.

With an estimated 12.5 percent of U.S. homes either in foreclosure or delinquent by at least a month, the problem is only expected to get worse.

Regardless of the reason for foreclosure, Chapter 13 bankruptcy may be the best way to legally stop the foreclosure process and allow homeowners to begin rebuilding their credit.

According to a recent Reuters story, a growing number of homeowners are reporting that they are being harassed by banks for mortgages that should have been recorded as paid in full.

In some cases, borrowers refinance a home loan but the original mortgage is never written off. In other cases, homeowners are sued for foreclosure on a house they sold years ago. And in some rare but worrisome cases, consumers are being pinned down for delinquencies when they never even had a mortgage to begin with.

It all comes down to the disorderly state of the lending industry.

During the peak of the housing boom in the mid-2000s, Wall Street encouraged mortgage servicers to quickly process loans so they could be sold around the world to thousands of investors. In the ensuing chaos, important legal procedures were brushed off.

Many times, Atlanta bankruptcy lawyers have seen homeowners have difficulty qualifying for a loan modification because the bank can't locate the owner of the original loan. Now homeowners are being held accountable for home loans that aren't even theirs. Because data has never been collected on wrongful foreclosures, there is no way to estimate the extent of the problem.

In one case, a Utah woman's accountant learned that the woman was being sued for foreclosure because a bank error had showed she was delinquent by a single dollar. As a result, her credit was ruined. In another instance, a Vietnam vet paid off his mortgage in full, only to have his bank continue sending notices in error.

It's an important reminder of how necessary it is to keep an eye on credit so that mistakes can be quickly corrected before they spiral out of control.

In the meantime, Atlanta bankruptcy is a helpful tool to have handy.

Errant fees and legal troubles can add up to cause serious financial hardship, whether deserved or not. And of course, many times foreclosure stems from a true inability to make payments, whether due to job loss, credit card debt, or medical bills.

As Court Ruling Threatens Credit Card Reform, Atlanta Bankruptcy Still Offers Protection

Fri, 27 Jan 2012 11:47:48 -0500

It took years for consumer advocates to get laws passed protecting credit card users from random interest rate hikes and unfair fees. Now it looks like a January court ruling could undo those years of hard work.

According to SmartMoney, experts say the 8-to-1 Supreme Court vote means that consumers with credit card agreements containing a binding arbitration clause don't have the right to dispute issues in a courtroom. Instead, they must go through the private - and often biased and expensive - arbitration process.

Unbeknownst to most consumers, many credit cards issued by big companies come with a mandatory arbitration clause. Now critics of the ruling say that even more credit card companies may be encouraged to add arbitration language to their credit card agreements.

The biggest problem with the arbitration process is that it favors creditors.

Atlanta bankruptcy attorneys point out that it's extremely rare for a consumer to win an arbitration case against a credit issuer. California data, for instance, shows that during a four-year period credit card companies won 94 percent of the time. Cardholders won only 4 percent of the time.

It makes sense when you consider that large credit card companies typically hire the arbitrator for the process. Who is an arbitration company more likely to side with: the billion-dollar client that gives them their business, or a single consumer they'll probably never see again?

Even if it's believed that a credit card issuer has violated the Credit CARD Act - which includes provisions such as a required 45-day notice for rate changes and the prohibition of retroactive rate increases on an existing balance - the new ruling can't protect consumers from arbitration.

It's not the first time consumer protection legislation has ultimately failed to protect consumers - and it likely won't be the last.

However, there is one type of consumer protection that is proven to work: bankruptcy.
Filing for bankruptcy in Atlanta still has the power to make a difference for consumers. That's what it was created for - to help the little guy, not big business.

If you're making minimum payments, accruing late fees, and fending off debt collection companies because you're overloaded by debt, one little interest rate rise or new fee could be the final straw. Don't wait until paying off your credit card debt becomes impossible.

Depending on your situation, bankruptcy can lower or discharge debt completely.
With an Atlanta bankruptcy, consumers can start gaining back control of their finances. In the process, many are able to rebuilt their credit, pay off other debts - and reduce their chances of being dragged into a painful and pointless arbitration case.

Atlanta Bankruptcy Can Alleviate Stress Caused by Debt Problems, Lack of Financial Willpower

Mon, 23 Jan 2012 12:58:15 -0500

Family and financial difficulties may be causing Atlanta residents to suffer from unhealthy amounts of stress, according to a recently released survey.

While the American Psychological Association poll showed that stress levels in Atlanta have fallen slightly since peaking last year, the area still reported an average stress level of 5.3 on a 10-point scale - more than three times what's considered healthy. Up to 67 percent of Atlanta participants said they have trouble managing and reducing stress.

For some, filing for an Atlanta bankruptcy may provide much-needed relief.

Those who suffered the most stress were usually caregivers of an elderly or ill family member. Atlanta bankruptcy lawyers can attest that, on top of the obvious emotional burden, many clients caring for a relative often end up carrying a significant financial burden.

At the heart of the problem may be willpower.

One third of adults cited lack of willpower as a barrier to overcoming stress, and more than half of these Atlantans said they need more confidence to make a change.

It takes determination to dig out from underneath layers of credit card debt and medical bills. There's no way around it - large debts require sacrifices and lifestyle changes. The only way to regain control of debt is to pay enough each month to lower the balance. But paying more than the minimum on a $10,000-plus debt burden can leave little cash leftover for other expenses.

Lowering debt little by little can be done. But for many, maintaining the willpower to stick to a tight budget year after year is just not realistic.

When a financial situation becomes overwhelming - let's say that an expensive mortgage, hospital bills or unemployment led you to drive up your credit card balance - bankruptcy can provide the breathing room needed to make changing your money habits possible.

Filing for Chapter 7 bankruptcy can eliminate most or all of a person's unsecured debt. In exchange, filers may occasionally be required to give up some assets - though many types of property are exempt. Chapter 13 is another Atlanta bankruptcy option that legally protects assets, but involves committing to a repayment plan for debt. After the repayment period is up, remaining debt can be forgiven.

Stress over debt takes a toll on health. People suffering from financial troubles can experience health problems ranging from regular headaches to medical maladies as serious as ulcers, clinical depression, and even heart attacks, according to the Associated Press.

Chapter 13 Bankruptcy an Option for Atlanta Residents Considering a Strategic Default

Tue, 17 Jan 2012 00:01:23 -0500

As kids, we're taught that it's wrong to walk away from our problems. But as adults, many of us are doing just that by walking away from our mortgages.

Years of falling real estate prices have resulted in a large number of underwater homeowners - borrowers who are locked into a loan for more than what their home is now worth.

Those most negatively affected are young people who bought at the peak of the market and older adults who had been hoping to downsize in retirement. Hard economic times make the high payments a stretch, yet homeowners can't sell their homes without handing over a fat check to the lender.

In a situation they seemingly can't win, many are simply calling it quits. In a move termed "strategic default," they're ceasing mortgage payments and sending their house keys back to the bank.

Unfortunately, Atlanta bankruptcy attorneys have seen many clients suffer credit setbacks and even litigation as a result of defaulting on home payments. Many of these homeowners could have saved money, stress, and their home with an Atlanta bankruptcy filing.

According to MSNBC.com, walking away is easier than ever because modern homeowners feel little connection to their lenders. And it's not entirely our fault.

Many folks receive their original loan from a large national bank. Afterward, the loan may be broken up and sold to multiple anonymous investors. Often times, people seeking a loan modification aren't able to track down who currently owns their mortgage. No wonder the process feels so impersonal.

But it becomes personal when you walk away.

Defaulting on mortgage payments can drastically drop your credit score, making it difficult to find a rental, qualify for credit, and get approved for affordable interest rates. To make matters worse, lenders are beginning to aggressively seek court-ordered repayments for homeowners who walk away.

Before you make a life-changing decision like defaulting on your mortgage, make sure to consider how it will affect you down the road. Sure, giving up those mortgage payments might lighten the load today. But you're still going to have to pay rent in the future. If you ever want to buy another home, a history of default isn't going to do you any favors. And if you have other debts to deal with - like credit card debt - they aren't going to go away on their own.

Bankruptcy has the potential to improve your financial situation so that you can better handle those mortgage payments. Chapter 13 bankruptcy can protect your home from foreclosure - no matter how many mortgage payments you've missed - and reorganize your unsecured debts into more manageable payments. If you qualify for Chapter 7 bankruptcy, it's possible to wipe out unsecured debts entirely.

How to Tell If You Have Too Much Credit Card Debt in Atlanta

Wed, 11 Jan 2012 00:04:00 -0500

Credit card debt doesn't usually happen overnight - sometimes it just kind of sneaks up on you.

Unfortunately, this means that many consumers don't easily recognize when their debt crosses the line from manageable into unmanageable territory. As a result, they may ignore steps that can help relieve debt and protect their assets - such as an Atlanta bankruptcy filing.

According to Bankrate.com, 9 of every 10 Americans say that debt is not a significant issue for them. Yet statistically speaking, most consumers are shouldering thousands of dollars in debt. The average household carries $4,200 in credit card debt - in Atlanta, that number is as high as $4,960.

By some estimates, more than 10% of Americans are delinquent on their mortgage. Many more people are struggling to make payments. Often times, the problem is too much credit card debt.

It all points to one thing: Atlanta consumers are in debt denial.

It's easy to think of credit card debt as a national problem, not a personal one. Maybe you tell yourself that you'll cut back on spending tomorrow or that when you get that raise or new job you'll be able to get things under control. Maybe you're ashamed to admit you have a problem. Yet that's the kind of denial that allows debt to spiral out of control, according to our Atlanta bankruptcy attorneys.

If you're routinely making minimum payments, leaving bills unopened, or squirreling away purchases, it's time to take an honest look at your finances. Here are some of Bankrate.com's top signs of serious debt trouble.

Remember, there's nothing shameful about having too much credit card debt - many Americans are in the same boat thanks to the Great Recession. It only reflects poorly on you - and your credit - if you don't do anything about it. If you find yourself identifying with many of the points on this list, filing for bankruptcy in Atlanta may help you take charge of debt once and for all.

Are You Frequently Paying Just the Minimum?
It's simple math: making minimum payments means you're paying interest on the majority of your balance every month. Depending on the size of your minimum, you may not even be covering interest. If your last several payments haven't been enough to lower your credit card balance - but you can't afford to increase them - it's time to consider getting help before you debt grows any further.

Are You Spending More Than You Earn?
If you're always putting more on your credit cards that you're bringing home, it's unrealistic to believe you'll be able to pay off your debts without assistance. Waiting for that raise or bonus? Studies show that when people increase their earnings, the new money usually goes to groceries, gas, new clothes, etc. Putting off dealing with debt won't make it go away. It's only a matter of time before your growing balance leads to ruined credit, harassment from debt collectors, garnished wages and more.

Are You Maxing Out Cards?
Do you frequently get close to - or exceed - your credit limit? If you do, you're hurting your credit. Up to 35% of your credit score is based on the amount of debt you carry in relation to your limit. Using under 30% of your available limit is recommended. Using more than that? You probably have too much debt.

Are You Ignoring Important Bills?
Do you leave bills unopened until the last minute because it stresses you out to think about debt? Ignoring your balance makes it too easy to keep spending when you know you shouldn't. It's also a surefire way to rack up late fees and other expenses.

Are You Hiding Purchases?
Many times, hiding credit card bills and purchases from your family is a sign that you're feeling guilty over your debt. Why suffer alone in shame? Two heads are better than one. Talking about your debt problems with a trusted relative, advisor, or attorney can help you find solutions for your debt and also relieve the stressful burden.

When Debt Follows Family After Death, Bankruptcy May Help

Mon, 09 Jan 2012 00:01:00 -0500

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.

While Credit Card Debt Falls for Some, Atlanta Bankruptcy Offers a Solution for Others

Thu, 05 Jan 2012 00:00:46 -0500

There's good and bad news when it comes to the Federal Reserve's recent report on credit card debt in the U.S.

The good news is that the latest numbers show credit card debt fell through October 2011. That's the fourth straight month that consumers have cut back on plastic.

As for the bad news? Atlanta bankruptcy attorneys point out that the data doesn't take into account the holiday shopping season, when many Atlanta consumers feel compelled to spend money that they don't have. And, of course, that requires a credit card.

It's not that people are swearing off credit cards. One of the most likely causes of the debt decline is that consumers are struggling to pay down large balances of existing credit card debt so that they can gain access to new credit. Of course, with incomes mostly stagnant, it can be difficult to find the money to pay much more than the minimum balance - which is required to take a bite out of credit.

In an article about the report by CreditCards.com, an Atlanta resident said she started paying down her balances after discovering she could save a significant amount of money if she didn't have a balance on her card each month. Atlanta bankruptcy lawyers agree with her strategy. But we also know that not everyone has the funds to pay off balances in full.

For those of us with overwhelming credit card debt, bankruptcy offers a solution. Filing for bankruptcy in Atlanta has helped thousands of people eliminate debt, avoid foreclosure, and regain their financial independence regardless of the economy we live in.

One of the biggest problems with credit card debt is that it works its way into every area of a person's financial life.

Interest and fees cause debt to grow far beyond original purchases. Too much debt impacts your ability to handle house payments and other important expenses. When you take on too much credit and start missing payments, your credit report takes a beating, making it impossible to qualify for affordable rates - and even impacting your chances of being hired for a job.

Credit card debt can easily snowball out of control. Bankruptcy can reverse that snowball effect. Filing for Chapter 13 bankruptcy may allow you to make more affordable payments on your debts over a period of 3-5 years, freeing up more money for you to make other payments like the mortgage.

Chapter 13 also has the unique ability to legally stop foreclosure. Afterward, remaining debts are discharged. For those who can't manage to make payments, Chapter 7 bankruptcy can often clear debts completely. Our skilled Atlanta bankruptcy attorneys can identify the best form of bankruptcy for your individual situation so you can start making progress on paying off credit cards and getting your life back.

Preparing For Family Burdens in Georgia May Lead You to Consider an Atlanta Bankruptcy

Tue, 03 Jan 2012 00:01:00 -0500

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.

How Atlanta Bankruptcy Filings Can Improve Consumer Finances in 2012

Sun, 01 Jan 2012 00:53:33 -0500

A new year always holds the promise of a fresh start. And when times are tough - as they've been for many Atlanta families in recent months - that fresh start is even more enticing than usual.

Last year, Georgia's economy grew by a dismal 1% and suffered an unemployment rate of 9.9% - one of the highest in the nation, reports the Atlanta Business Chronicle. Economic growth is anticipated to rise to 2.3 percentage points next year - a slight improvement, but not enough to help the many residents still out of work, struggling to pay the bills, and fighting off foreclosure.

But while we can't control the financial future of Atlanta in 2012, we can control the future of our own personal finances with a little persistence - and, in some cases, an Atlanta bankruptcy filing.

Reduce credit card reliance
The best way to better your finances in 2012 is to wean yourself off credit dependence, which is the first step to stopping the financial bleeding.

There's a well-documented correlation between bankruptcy filings and credit card standards, according to Atlanta bankruptcy lawyers. When banks hand out credit cards like candy, bankruptcy filings go down. Why? It's because credit provides an easy short-term solution for struggling consumers. The problem is that credit also leaves long-lasting damage.

When you need to buy Christmas presents or pay that phone bill, a credit card buys time - but ultimately you still owe the original amount plus interest. Credit doesn't get to the root of the problem. An Atlanta bankruptcy filing, on the other hand, does. Yes, bankruptcy takes more effort, but it has the ability to eliminate past debts, stop foreclosure, and allow Atlanta families to get back on their feet.

Adjust mortgage terms
As home values continued to dip through 2011, it's been estimated that more than a quarter of all Americans are underwater in their mortgage - in other words, they owe more in payments than the total value of their home.

If you're stuck with a property you can't afford, you may be able to refinance your mortgage with today's low rates thanks to the government's Home Affordable Refinance Program. In some cases, buyers are able to attain a 30-year fixed-rate mortgage for less than 4%!

But what if you can't refinance because of a job loss, medical emergency, or other financial burden? A Chapter 13 bankruptcy filing can relieve the pressure of debt, lower your bills, and allow you to avoid foreclosure and keep your house.

Start saving once and for all
Every financial situation is different, but the cold hard truth remains the same - if you want to achieve financial freedom, you're going to have to spend less than you earn.

There are a number of ways to accomplish this. Increasing your income is one solution, though it's not realistic for most Atlanta workers. Lowering your spending is another option. If you can't afford to cut back on purchases and beef up your savings, Atlanta bankruptcy lawyers may be able to help.

Chapter 13 bankruptcy is often the most realistic way to make a mortgage more affordable, while Chapter 7 bankruptcy can help you pay the bills when facing a serious income shortage - whether from a lack of unemployment or insurmountable bills. Why not make 2012 the year you start making ends meet?

Atlanta Bankruptcy Numbers Drop Slightly, But Remain Steady in 3rd Quarter

Wed, 28 Dec 2011 00:01:00 -0500

Recently released numbers by the American Bankruptcy Institute showed that the number of people filing for bankruptcy in the Atlanta area decreased slightly overall but still remained high in the third quarter of 2011.

Our Atlanta bankruptcy lawyers understand that historically the third quarter numbers are typically not as high as fourth quarter numbers, so it will be interesting to see how many people filed for bankruptcy in Atlanta in the last part of the year.

We know plenty of people are coming to discuss their situations with us on a daily basis. With the economy still in the tank, jobs scarce and foreclosures on the rise, it's no wonder people are considering filing for bankruptcy.

Some analysts believe that the numbers would be higher, except that credit card companies and other lenders in recent months have loosened their standards and attempted to give out more credit than that have in the past.

That's evident by the many television commercials starring famous actors we see every day. Capital One, Chase and other companies are attempting to get as many people to sign up for their cards as possible through "perks" and "rewards." But these benefits may not be all that they're cracked up to be, and may only kick in if you spend a lot of money.

According to the American Bankruptcy Institute, there were 12,672 bankruptcy filings in the United States Bankruptcy Court for the Northern District of Georgia. That is the court that deals with bankruptcy filings for Atlanta and the surrounding area. The southern and middle districts combined had about 5,500 bankruptcy filings last quarter.

For the northern district, that was a drop of 200 filings, or 1.5 percent. While the numbers have dropped steadily since the 14,040 filings in the third quarter of 2010, last quarter's filings were higher than every quarter except one starting in the fourth quarter of 2009 and going back more than five years.

Another interesting statistic out of last quarter's numbers is that Chapter 13 bankruptcy numbers are up this year. In fact, they have risen each quarter this year. In the first quarter, there were 101,006 filings, up to 101,286 in the second quarter and 102,900 this past quarter. Chapter 7 bankruptcy filings in Chicago and nationwide dropped from 367,486 to 336,930 this quarter.

Statewide, there were more bankruptcy filings last quarter -- 18,712 -- than the last quarter, up from 18,397. Those numbers have trended downward from the third quarter of 2009, when 19,712 people filed. Numbers peaked in 2010, when 20,694 people filed in the third quarter.

We report all these numbers to show that many people are considering bankruptcy in Atlanta in these tough times. It is a viable option for many families who are struggling to get by and who aren't ashamed to let the laws designed to help consumers help them. With thousands of dollars in debt eliminated, people can once again focus on paying their bills, staying in their homes and not dealing with collection agencies.

Cops, Movers Walk Away, Leave 103-Year-Old Atlanta Woman's House Despite Foreclosure Eviction Notice

Fri, 23 Dec 2011 00:01:00 -0500

In a strange, but uplifting turn of events, law enforcement and bank-hired movers ordered to evict in Atlanta recently walked away from a home after seeing that the owner was an elderly 103-year-old woman, The Atlanta Journal-Constitution reports.

Many Americans haven't seen the same type of kindness displayed to them when people come knocking on their door and threaten to take their house and kick them to the curb. Millions of Americans have endured a foreclosure and while many have simply walked away and found a place to live, others have met the problem head-on with people changing locks or threatening eviction with law enforcement in tow.

There are millions of houses nationwide that are under water, meaning the owners are paying more in monthly mortgage payments than the house is worth. And, yet, people are trying to stay in their homes.

What some people don't realize is that filing for Chapter 13 bankruptcy in Atlanta can help people stay in their homes and significantly improve their debt situation.

If consumers have fallen into debt and are having difficulty making house payments, they could be best served by talking with a skilled Atlanta bankruptcy lawyer, who can advise them on the best course of action.

As our lawyers have reported recently, the popularity of Chapter 13 bankruptcy has increased lately. The "wage earners bankruptcy," Chapter 13 allows people to keep major assets, such as a house, vehicles and other things and set up a payment plan over 3 to 5 years. If those payments are made, on time, throughout that time period, the remaining debt is cleared. And filing for bankruptcy immediately stops foreclosure.

This is different than Chapter 7 bankruptcy, which is the more popular version of the two. Most people relate to this version, where people, mainly who have no income and few assets, are able to lose the debt without losing any assets. In some cases, valuables may be liquidated to pay back debt, but there are exemptions.

In this woman's case, she and her 83-year-old daughter have lived at the home for decades. Court records show, the newspaper reports, that in 2002, the woman's grandson got a second mortgage on the house from Deutsche Bank National Trust. The loan is now being administered by Chase Bank.

Deutsche foreclosed on the house in 2009 and the women had remained in the home while he fought foreclosure. Chase recently ordered the eviction, despite pressure from local politicians and community activists.

When police and movers showed up to evict, they walked away after seeing the woman. The stress caused her daughter to be sent to the hospital. The bank said in a statement that they would work out an agreement to allow the women to stay in their home.

It would be naive to believe this situation happens often. While there have been occasional examples of people getting last-ditch agreements, most often the banks aren't generous and they take people's homes. The better strategy is to have a plan. Speak with an Atlanta bankruptcy lawyer and see how bankruptcy can help you avoid foreclosure.

Avoid Psychological Damage From Collections By Filing for Atlanta Bankruptcy

Mon, 19 Dec 2011 00:01:00 -0500

The Wall Street Journal recently reported that there are ways to avoid the psychological damage done when collection agencies continue to badger people to collect debt.

Our Atlanta bankruptcy lawyers would argue that one way to avoid the headaches of collection agencies and their representatives is to avoid them altogether.

Filing for bankruptcy in Atlanta immediately stops collection agencies from bothering you. Once you file, they are alerted to cease communications with you and direct their communications with the court.

The whole purpose of filing for bankruptcy is to eliminate debt. But there are other benefits that can make filing worthwhile. Stopping wage garnishments, ending the countless calls and e-mails and other bothersome alerts can make life much easier for those who are in debt.

Banks and other lenders are ruthless when it comes to collecting what is owed. They don't care what damage they are doing. The collections agencies are paid to get money and the lenders want to be paid. It's a bad cycle that doesn't end until you pay up or you file for bankruptcy.

These companies rarely want to listen to debt management solutions, payment plans or cutting back on how much you owe them. Like the banks and foreclosures, the credit card companies and other lenders are interested in maximizing profits and it doesn't help when they could stand to lose money.

A recent Wall Street Journal article looks at alternative strategies to limiting the damage done by collection agencies. It follows the story of a New York man, a struggling musician, who would get 40 to 50 automated calls a day.

His solution was to by a caller ID box with a ring controller. It gave him peace while he negotiated a 69 percent reduction in the $54,000 in credit card debt he owed. The story was on the heels of the continued decline in consumer credit, which has gone down nearly every month since September 2008.

While this man was able to cut down debt after he stopped paying and instead of paying 50 cents on the dollar, he got them down to 31 cents on the dollar. But many others aren't so diligent. A lot of people get warn down by continued calls and the harassment that debt collectors are known for bringing.

People sometimes decide just to make a minimum payment just to shut them up. This just leads to a higher amount of debt, higher interest rates and hidden fees that further cripple the person's finances.

Some people instead go running to debt relief companies or debt management companies that promise to work on their behalf. But these companies are no more likely to make a dent in the debt than the consumer and they don't work for free. These companies would charge up-front fees of 15 to 20 percent of what is left outstanding, which could be a huge amount of money to pay for little help. They were recently banned from charging up-front fees.

All these rip-offs won't help. But there's a good chance that filing for bankruptcy in Atlanta will. Depending on the consumer's income level, how much they owe and other information, they can get all or most of the debt cleared without having to pay it back. These laws are designed to help the consumer who has gotten in a bad debt situation.

Credit Card Companies Trying to Use Holiday Shopping to Lead Atlanta Consumers Into Debt

Tue, 13 Dec 2011 00:01:00 -0500

If you've watched television in the last few months, you've seen Jimmy Fallon, Alec Baldwin and that guy hired by Chase pitching the "cash back" benefit or the "perks" and "rewards" of their respective credit cards.

MoneyRates.com recently reported that many credit card companies are trying to seize the moment and strike quickly by trying to lock in new customers by giving away holiday-themed deals.

The reason Black Friday gets its name is because retailers believe that the big shopping day will turn their years around by pushing them from in debt (in the red) into profits (in the black). But in order for this to happen, consumers must be put in the red. And that's what credit card companies are hoping, too.

Atlanta bankruptcy lawyers know that credit card companies make money off of your debt. When consumers swipe the card, they become more indebted to the creditors and their pre-planned hidden fees kick in and high interest rates can kick in if payments are missed or only minimum payments are made. This just leaves consumers struggling as if they were swirling down a drain.

But they are terrified when borrowers mention the word bankruptcy. Filing for bankruptcy in Atlanta puts the consumer in the driver's seat and makes credit card company officials shiver because they now know they won't be able to recover as much money as they are owed.

As MoneyRates points out, these companies are trying to get as many consumers on-board with their cards as possible. The more that is put on their cards, the more they make off interest and other penalties. It keeps investors happy.

Here are some recent examples of "perks" and "rewards" being used by the credit card companies:

American Express offered a 20 percent discount from certain companies for those who shopped on Small Business Saturday.

Bank of America has a card that pays 2 percent cash back on groceries and 3 percent on gas up to $1,500 every three months. Another card offers 11 percent cash back on college when shoppers use Upromise.com to shop this holiday season.

Chase and Citibank are paying cardholders $200 in cash after they put $500 on their cards.

Capital One has a new card that offers 1 percent cash back on day-to-day shopping and 50 percent in bonus cash back every year.

Discover offers 0 percent interest for 15 months on purchases and consumers can get 5 percent back on $300 in purchases.

Maybe some of these sound like really good deals. "Cash back" has a great ring to it, doesn't it? But what these creditors aren't telling consumers is that in order to get many of these perks, they have to spend huge amounts of money and, in some cases, pay in back within a month or two to activate the perks.

All of these things are designed solely to entice people to sign up for their cards in order to make money. That's the bottom line. They are smart enough not to give up free money unless they're making a profit. Don't fall into the trap this holiday season.

Atlanta Mayor's Plan Would Allow Discounts for Police, Fire to Buy Foreclosed Houses

Fri, 09 Dec 2011 00:01:00 -0500

Atlanta city leadership has proposed a new plan to work with big banks in order to give police officers and firefighters a discount on houses that are in foreclosure, The Huffington Post reports.

This new plan, Mayor Kasim Reed said, involves "one of the largest banks in America" to give reduced rates to these public servants. While some might feel offended that one segment of the population would get a deep discount to buy a house, given the number of foreclosures hammering Atlanta and the surrounding area, getting these houses off the market will benefit everyone.

For those struggling with foreclosure in Georgia , filing Chapter 13 bankruptcy in Atlanta may be a smart move. Foreclosures have hit people who have lost their jobs, become over-extended financially, have had medical bills or other problems. For those people, clearing out their debt through bankruptcy can help them keep their house instead of losing it to foreclosure.

An experienced Atlanta bankruptcy lawyer can guide a consumer through this process. Many people, however, choose to deal with their debt through minimum payments and expecting calls from creditors. The better way is to get that debt eliminated and set up a payment plan to pay back some of the debt you owe.

For the many who have considered filing for bankruptcy in Atlanta, they may be able to pay off their debt and still keep their house, eliminating their outstanding debt all while freeing them up to continue making payments so they aren't kicked to the curb. And that can only help our local economy. The more foreclosures abandoned opens up neighborhoods for crime and keeps house values down.

Under the mayor's plan, The Huffington Post reports, one major benefit is that city employees who have settled in Atlanta's suburbs would be drawn back into the city, which would help with the tax base as well as retail numbers. Detroit created a similar program in 2010, offering police officers homes there.

This is in line with what federal officials have been trying to do. Earlier this summer the Obama administration talked with investors to attempt to turn government-owned foreclosures into rental properties, the newspaper reports. Senators have proposed a bill that would give U.S. residency visas to foreigners who invest $500,000 or more in the U.S. real estate market.

New York City officials have reported that foreclosed homes have become a magnet for drug activity, prostitution, gang members, thieves and the homeless. Officers respond daily to calls that relate to foreclosed homes.

Atlanta bankruptcy lawyers hope that government officials can come up with more and more innovative programs to get foreclosures off the market. They are dragging down our economy, so the fewer out there, the better.

But for those who are in the foreclosure process or on the cusp, consider meeting with an experienced Atlanta bankruptcy lawyer. Rather than trying to deal with banks alone, a skilled attorney can help you avoid foreclosure or provide alternatives to work with banks to save your house.

Foreclosures On The Rise But Atlanta Bankruptcy Can Help

Tue, 06 Dec 2011 00:01:00 -0500

Every month, just like in October, foreclosures increased throughout the Atlanta metro area. This time, they increased at a higher clip than usual.

Foreclosure in Atlanta and throughout the state has been a problem that has hampered local and state economies, made housing prices plummet and caused many homeowners heartache.

Yet bankruptcy, usually Chapter 13 bankruptcy in Atlanta, can help homeowners save their houses. Atlanta bankruptcy lawyers have been able to help many people save their houses through this process. By eliminating debt and setting up a payment plan for three to five years, people can hang on to their homes and still pay off the debt that is causing them so much stress.

With foreclosure notices constantly on the rise, the real estate market will not recover for years or perhaps decades. An increase in foreclosures means a steady decline in prices for houses. And as unemployment remains steady, this spells disaster for the economy.

Most analysts believe that major banks halted their foreclosure processes last fall in order to revisit how they could handle all these foreclosure cases -- millions nationwide -- without illegally signing fraudulent documents, using robo-signing practices and fabricating documents to support their foreclosure filings.

That's why 15,000 fewer foreclosure notices have been filed this year compared to last. But now that banks appear to have gotten that figured out, they are again starting to file hundreds of thousands of notices and nearly 11,000 in the Atlanta area alone, the newspaper reports.

Analysts with Equity Depot told the newspaper that the numbers show a large number of second and third foreclosure notices, meaning banks may be taking action against people who are furthest behind in payments. Another trend is that more foreclosure notices are being filed against people with prime mortgages, rather than sub-prime mortgages, which were made to people with greater credit risks.

Cobb County set a new high for the year in October with 1,333 notices sent out, while Douglas (410), Hall (332) and Rockdale (259) counties also experienced highs. DeKalb, Fulton and Gwinnett counties all hit more than 1,500 notices for the month.

There have been 102,094 notices filed in the metro Atlanta area this year compared to 117,437 at this time last year, the newspaper reports.

Some could take the latest statistic as a good sign, given that notices are slightly lower than they were last year, but considering banks severely halted their foreclosure filings for the better part of a year while states investigated them for robo-signing and illegal document filing and they're still close to last year's levels shows that they have more than made up for the time lost.

While it's true that banks appear to be going after the most delinquent borrowers first, many homeowners are at risk. And even people far behind in making payments can save their homes through bankruptcy. Filing for bankruptcy immediately stops foreclosure and ensures that creditors are shuffled to bankruptcy court as it stops them from contacting the homeowner.