With jobless rates at a five-year high, the credit crunch slowing consumer borrowing and personal incomes shrinking, it is no wonder that the economy is on everyone’s mind. Loosing a job, rising interest rates on adjustable-rate mortgages and not having enough money to pay your bills are adding to the stress that most people in Georgia are feeling when they think about the economy. Being backed into a corner by debt? Before your creditors foreclose on your home, you should consult with a Georgia bankruptcy attorney.
Filing Chapter 13 Bankruptcy can stop the foreclosure process. With the help of a good bankruptcy attorney, you can submit a plan to the bankruptcy court and trustee that could keep you in your home and allow you to pay the back payments due on your mortgage over a 3 to 5 year period. Bankruptcy has some stigma attached to it, but loosing your home to foreclosure will force you and your family to move, sometimes away from work, school, family, friends or your church. Hesitating to seek help if your home is in danger of foreclosure is a mistake.
According to a report from the U.S. Department of Labor, the official unemployment rate jumped to 6.1 percent nationally in August as the economy shed jobs for the eighth month in a row. Unemployment in the Atlanta Metro area has been ahead of the national rate recently.
The Federal Reserve issued a report that consumer borrowing grew by an annual rate of just 2.1 percent in July, reflecting a big slowdown in the category which includes auto loans. It is getting harder for consumers to restructure their debt in the current market. Some help on home loans is expected since the government takeover of mortgage giants Fannie Mae and Freddie Mac, but the structure that the two firms will take is yet to be seen.
The Department of Commerce reports that personal income fell by almost a full percentage point in July as consumer spending grew by a meager .2 percent. With incomes down and more people out of work, more and more Georgia families are finding it harder to pay their bills.
If they have fallen behind on their mortgage payments, a foreclosure notice could be waiting on their doorstep. The prospects for economic growth in the near future don’t look good according to the numbers reported by the government agencies. If you are struggling to make it but falling further and further behind, bankruptcy could be your best option.
If you are living paycheck to paycheck and still can’t seem to make your mortgage payment, a qualified bankruptcy attorneycan guide you through the process to a stronger financial future. Hiding from the financial crisis you are facing is not going to protect your family or your home. Getting sound advice from an Atlanta bankruptcy attorney should be the first step in tackling your money problems.
