2009 March | Georgia Debt Law ::. Bankruptcy Blog

Even Banks Are Walking Away From Foreclosures

An article on the New York Times Web site describes the plight of some property owners who have given up hope on catching up on their mortgages and walked away from homes or investment properties only to find that the bank that owns the loan won’t take possession of the property either.

According to the article, “City officials and housing advocates here and in cities as varied as Buffalo, Kansas City, Mo., and Jacksonville, Fla., say they are seeing an unsettling development: Banks are quietly declining to take possession of properties at the end of the foreclosure process, most often because the cost of the ordeal — from legal fees to maintenance — exceeds the diminishing value of the real estate.”

The new development in the foreclosure crisis emphasizes that if you are facing financial problems, you should do everything possible to keep in touch with your creditors and attempt to negotiate a solution to your problems.

Filed under: Economic News — Tags: diminishing value of real estate, foreclosure process, New York Times — Rob @ 9:29 am

Is Chapter 7 Bankruptcy Right for Me?

If you live in Atlanta, Georgia and you are considering filing for Chapter 7 Bankruptcy it is important to understand if you meet the federal guidelines outlined in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Georgia Bankruptcy laws follow the federal bankruptcy guidelines. The current Georgia Bankruptcy laws will let a person file Chapter 7 Bankruptcy if they have an income below the current household average income for a similar size family in Georgia. Failure to meet the Georgia income limits will force you to meet other types of Bankruptcy criteria or means tests. Failure to meet these means tests may force you into other types of bankruptcy processes, such as Chapter 13 bankruptcy.

To get legal expert advice about the Atlanta Bankruptcy process it may be a good idea to talk to an Atlanta Bankruptcy Attorney. An Atlanta Bankruptcy Attorney will help you to determine if your income is below the median income of other Atlanta residents. In 2008, the median income in Atlanta, Georgia for an individual was $39,253 and for two people it was $52,055.

To immediately qualify for Chapter 7 Bankruptcy your household median income must be below that amount. If your median income is higher, you still may be eligible for Chapter 7 Bankruptcy. If you are considering filing for Chapter 7 Bankruptcy you may want to talk to an Atlanta Bankruptcy Lawyer who will be able to outline any other exemptions and other criterion allowed for filing for Chapter 7 Bankruptcy under the current federal bankruptcy laws.

Bankruptcy is an important financial decision. Georgia unemployment continues to rise and this will forces even more families into bankruptcy. If you are behind in your mortgage payments, you are not alone. In 2008, the Mortgage Bankers Association reported that in the last three months of the year one in eight Georgia homeowners were behind on their mortgage payments. Georgia has also been hit hard by the subprime mortgage crisis. The report also states that in Georgia of the residents who have these types of loans almost 35% are delinquent or in home foreclosure. Due to the home mortgage and lending crisis and unemployment, Georgia Bankruptcy filings are on the rise. In 2008, Georgia bankruptcy filings rose more than 20 percent from 2007.

Fortunately, you do not have to do this alone. If you are facing a financial crisis, are harassed by creditors or if the banks or mortgages companies are threatening home foreclosure, you do have options. Let an expert Atlanta Bankruptcy Attorney help you determine if filing for either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy may be a sound financial decision for your family.

General bankruptcy attorneys may be able to answer your general bankruptcy questions, but to get the best legal advice possible concerning Chapter 7 Bankruptcy, it is important to find an Atlanta Bankruptcy Attorney who specializes in Atlanta Bankruptcy law and understands any changes that have been made in Georgia Bankruptcy.

Bankruptcy is a serious financial decision and can have serious financial consequences for your family. It is not a financial decision that should be made lightly or with out the sound legal advice of an Atlanta Bankruptcy Attorney. Contact an Atlanta Bankruptcy Lawyer today and see if Bankruptcy is right for you or your family.

Filed under: Bankruptcy Information — Tags: Atlanta Bankruptcy Attorney, Atlanta Chapter 7 Bankruptcy Attorney, Chapter 7 Bankruptcy in Atlanta — Rob @ 12:34 pm

Georgia tops bankruptcy rankings

Georgia ranks number three in U.S. bankruptcy filings, according to Elizabeth Warren, a professor at Havard Law School and the chair of the Congressional Oversight Panel created to oversee the Troubled Assets Relief Program.

Are you considering bankruptcy, too? Whether this is your initial search for information or you have already done your bankruptcy homework, one great resource for state-specific information is the State Bar of Georgia. It offers a consumer pamphlet series, including an overview of Georgia bankruptcy laws designed to answer general questions about the bankruptcy process. “Anyone considering bankruptcy should speak with an attorney who is familiar with or specializes in bankruptcy for specifics and a greater explanation of the law,” the pamphlet advises.

Our attorneys will help you select the best bankruptcy option for your situation, and ensure that all of your creditors are included in the debt relief settlement. They will guide you through the complexities of this difficult decision, including mapping out every step you must take to qualify for bankruptcy protection and appearing with you in court.

Federal law requires that your debts are a financial hardship beyond control. Common situations that create such circumstances include:

Loss of employment,
Medical bills,
Stopping foreclosure on your home, or
Divorce.

We understand that your situation is unique, and you may be experiencing any number of the common or other financial hardships. We are here to help you change your situation and gain control of your debt.

To learn more about Elizabeth Warren’s research on bankruptcy, debt, and the current financial crisis in the United States, view her bibliography.

Filed under: Bankruptcy News — Tags: Atlanta Bankruptcy, Congressional Oversight Panel, Elizabeth Warren, TARP, Troubled Asset Relief Program — Ashley @ 9:49 am

One In Eight Georgia Homeowners Behind On Mortgage

A report issued by the Mortgage Bankers Association shows that 1 in 8 Georgia homeowners was delinquent or in foreclosure in the last three months of 2008.

The association said that 223,000 Georgia homeowners behind on mortgage payments or already in foreclosure was a 16 percent increase from the numbers for the third quarter.

The report also said that homeowners with subprime mortgages were more likely to be having trouble, with roughly 35 percent of Georgia residents with those types of loans either delinquent of in foreclosure.

With unemployment rates continuing to climb, Georgia’s economic woes are likely to get worse before they get better.

Bankruptcy filings for the 12-month period ending in December 2008 rose more than 20 percent across Georgia. In the Northern District of Georgia Bankruptcy Court, which serves Atlanta metro, the number of bankruptcies filed reached 40,122, up 24.1 percent from the 32,320 cases filed in 2007.

As a bankruptcy law firm, we recommend that those in danger of losing their home to foreclosure seek advice about a possible bankruptcy filing as soon as possible. Georgia law allows for the foreclosure on your house to go through relatively quickly with little notice to you.

Getting the advice of an experienced Atlanta bankruptcy lawyer can help you keep your home.

Filed under: Bankruptcy News — Tags: Atlanta Bankruptcy Lawyer, Foreclosure, Georgia Foreclosure Law, Georgia Homeowners, Mortgage Bankers Association — Rob @ 8:26 am

Arkansas Governor Takes Heat Over Pilgrim’s Pride Closure

Arkansas Governor Mike Beebe was pelted with questions at a meeting of workers and community members in ElDorado, where Pilgrim’s Pride plans to close a plant in May.

The governor told the gathering that a group of buyers has offered to purchase the plant, although the Texas-based poultry company has not responded to the offer.

Officials with the Pittsburgh, Texas chicken and poultry producer declined to comment in a story distributed by the Associated Press.

Tempers flared in the meeting when employees and suppliers of the plant pressed Gov. Beebe for more information about the deal.

The governor is quoted as saying that “The odds are we’re not going to be able to get this done no matter how hard we’re trying, but we’ve got to try.”

Pilgrim’s Pride announced last week that it would shut down operations at the ElDorado, Arkansas plant, along with plants here in Douglas, Georgia, and another Farmerville, Louisiana.

The company filed for Chapter 11 protection in December as it struggled with rising feed costs and a weakened economy.

Filed under: Bankruptcy News — Tags: Arkansas Governor Mike Beebe, Douglas, Douglas Georgia, Eldorado Plant Closing, Georgia, Pilgrims Pride, plant closing — Rob @ 12:26 pm

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