Georgia Bankruptcy and Foreclosure FAQ

It’s no secret that Georgia foreclosures are high. They are some of the highest in the country. About 1 in 250 homes in Georgia are going into foreclosure every month according to source RealtyTrac. What can we do to stop it?

Considering Bankruptcy
Bankruptcy is invaluable for more than discharging debt. Most bankruptcies are about debt problems, namely credit and medical. However, with the unemployment rates at about 10 percent, and Georgia right up there at 9.9 percent in recent months, many are looking beyond unsecured debts. Secured debts are putting many of us in a bad position. An unsecured debt would be money owed such as a credit card or medical bill. A secured debt, more importantly, is your home, your car, your boat, money owed with the possibility of foreclosure and repossession. Bankruptcy can stop this.

The automatic stay at the least buys you time to pay on debts. It can also stop a foreclosure in its tracks. Keep reading and you’ll know how.

Why Not Sell?
But you may wonder about solutions beyond bankruptcy. After all, bankruptcy means your assets are “liquidated.” It’s a common myth that you lose everything. Though bankruptcy is not always your best option, you rarely lose many assets and more rarely your home if you file correctly. On the other hand, it would be incorrect to say bankruptcy can solve all your problems. Sometimes you’re simply in over your head. You had a good job, bought a nice home, and then lost the job, and couldn’t afford the mortgage.

Beyond bankruptcy, you can sell the home for its value on the Georgia market, recouping all your losses with some luck. You may also try a short sell, not quite as effective because you are only paying off what you owe the bank. With the state of property values nationwide and in Georgia, selling your home for full value may not work.

Chapter 7 and Foreclosure
Chapter 7 bankruptcy isn’t the best way to stop a foreclosure. You can implement some strategies. For example, you might declare Chapter 7 and negotiate with the lender outside the bankruptcy. You may save some money with the bankruptcy, and have more to keep the home. This too does not always work. At the least, you can buy some time to find a new residence.

Saving Your Home with Chapter 13
Chapter 13 bankruptcy is likely better, though it’s used less than Chapter 7. Chapter 13 can help you rework your payments on your home. If you file before foreclosure is begun, you have a very good chance of completely stopping a foreclosure. And if you owe money on a 2nd or 3rd mortgage, this can be discharged.

If You Have Questions
Some of the legal terminology in this blog post may confuse you. It’s tough to understand all the bankruptcy rules and regulations, especially when they can be different from state to state. For Georgia home owners, the best decision to make is hiring an experienced Georgia bankruptcy attorney. He or she can walk you through this process.

Filed under: Bankruptcy Information — Tags: atlanta foreclosure faq, foreclosure laws, Georgia bankruptcy, Georgia bankruptcy attorney, Georgia bankruptcy law, Georgia bankruptcy lawyer, georgia foreclosure, georgia foreclosure options — jmalewitz @ 2:56 pm

Questions on Bankruptcy Lawyers and Debt Discharge

Georgia bankruptcy can define the next decade of your life. If you make the right choice, you can be financially solvent in a short period. But you likely already have some questions, especially regarding the discharge and lawyers. This blog guide focuses on these questions.

Who should you hire?
You should hire someone not for their legal help and expertise. A lawyer tries to help you. You should hire someone who has proven effective in helping others. There are thousands of Georgia bankruptcy lawyers, and not all are capable of handling your case. However, a good lawyer can make your discharge a life changing event.

How much can you discharge in bankruptcy?
According to USCourts.gov, “A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged. The discharge is a permanent order prohibiting the creditors of the debtor from taking any form of collection action on discharged debts …” You can discharge all debt, according to this government site reference, that is covered. Some debts cannot be discharged in Chapter 7 bankruptcy. You can discharge more kinds of debt in a Chapter 13 bankruptcy, but then you have to pay. The only limit you need worry about is the limit on what debts can be discharged. For instance, you can discharge a medical bill, but not taxes.

How does a lawyer help?
If you’re scratching your head about some of these bankruptcy facts, terms, and rules, it’s understandable. You need not read hundreds of articles and dozens of books on the subject. A lawyer can educate you quickly on how to discharge the most debt, protect the most property and assets, and at the end of the day save the most money.

What can’t you discharge in bankruptcy?
The most commonly listed debts you can’t discharge include taxes, alimony, and child support. That’s quite logical. The government won’t discharge monies you owe it. Alimony and child support are different issues with legal statutes. There are some other debts you can’t discharge in certain situations, but it’s best to ask your lawyer.

Why pay back debts with Chapter 13?
You discharge a debt in both Chapter 7 and Chapter 13 bankruptcy, yet Chapter 7 is about actually eliminating the debt, while Chapter 13 means paying some if not all the debt back over a manageable period. That makes Chapter 7 look better to many, and that’s the reason it’s still more common. However, paying back your debts with a Chapter 13 bankruptcy can mean protecting your home from foreclosure, car from repossession, wages being garnished, and more. Your assets have more legal protection.

What if you aren’t eligible?
If you make too much money, the Georgia median income comes into effect and you can’t file Chapter 7. In rare cases, if you owe hundreds of thousands in secured and unsecured debts, you can’t file Chapter 13. What often happens is you want to discharge the debt with Chapter 7, but because of your income, you are forced to file Chapter 13. This rule was put into effect in 2005, making Chapter 13 more common. If you are unsure, consult with a Georgia bankruptcy lawyer.

Filed under: Bankruptcy Information — Tags: Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Foreclosure, Georgia bankruptcy, Georgia bankruptcy attorney, Georgia bankruptcy law, Georgia bankruptcy lawyer, georgia chapter 7 eligibility, legal help for bankruptcy, Liquidation — jmalewitz @ 2:33 pm

Being Unemployed and Filing Personal Georgia Bankruptcy

If you’re considering filing bankruptcy and are unemployed, what are your options? Because you lack an income, you should rule out Chapter 13 personal bankruptcy, where you pay into a debt repayment plan. You can rarely successfully file Chapter 13 without a job. However, it may be possible if you other income coming in.

The advantage with Chapter 7 bankruptcy is that you can save thousands of dollars, be free of debt, and lose little to no assets. Your home and car can be protected, but the more you own the more need you have for a professional lawyer.

If you have a large amount of property and assets, you stand to lose some of these in bankruptcy. While not common, if your home is going into foreclosure, bankruptcy may not solve your problems. On the other hand, being free of thousands to tens of thousands in debt may allow you to make payments on your home and car with income such as unemployment, disability, and pension.

Some say having no job is almost better with Chapter 7 personal bankruptcy. Why? Changes to Bankruptcy Code in 2005 made it more difficult to make the means test. The means test is the process where your income is calculated. If you are without work, you likely have no income, or perhaps a smaller income. The point here is that your income is based on the previous six months, so if you made a lot of money in the past six months you may have to delay your filing until your average gets below the limit.

For Georgia Chapter 7 personal bankruptcy filers, the median income is what eligibility is based on.

What is the annual median income for Georgia?
1 Individual – 40,546
2 Filers– 55,061
Family of 3 – 60,887
Family of 4 – 68,258
If you have a larger family, add $7,500 for each additional person.

This gives you some breathing room, though many make more than this while employed. But if you’re recently unemployed, you can more than likely file even if on unemployment benefits or disability, as these are very rarely higher than the median incomes stated above.

What if you have no money at all?
If you have no money whatsoever, remember you need to pay a filing fee for bankruptcy, and unless you are experienced in bankruptcy law, you need to hire a lawyer. Few of us are incapable of coming up with these fees given time, and while the court rate is not negotiable, some lawyers are willing to work with you.

Who can help?
What if you’re employed but have too much debt coming in? What if you lost benefits and then had an injury, leading to a huge medical bill? Who can help if you have questions? You need an experienced Georgia bankruptcy lawyer.

First, a lawyer can help you make the decision on whether filing bankruptcy is smart. Second, he or she can advise you on how to best discharge the most debt. Third, if you are making money, a lawyer can explain what Chapter 13 personal bankruptcy can do. Finally, a lawyer is your voice in and out of court: if you run into legal trouble, if creditors are harassing you constantly, and if you fear foreclosure, a lawyer can help.

Filed under: Bankruptcy Information — Tags: advantages of chapter 7 bankruptcy in georgia, Chapter 7 Title 11 United States Code, costs of bankruptcy, Georgia bankruptcy, Georgia bankruptcy attorney, georgia bankruptcy court, Georgia bankruptcy law, Georgia bankruptcy lawyer, georgia chapter 13 bankruptcy, Liquidation, unemployment and bankruptcy — jmalewitz @ 2:15 pm

Chapter 7 and 13 Bankruptcy Question: Which Saves You More Money?

While filing bankruptcy is often about saving money, in many cases people file for the wrong reasons, with the wrong goals, and the outcome is sometimes second bankruptcy. You might even face foreclosure and creditor harassment all over again.

The answer? There are no secrets in this guide. Georgia Debt Law simply uses common sense to get results. First, let’s go over Chapter 7 bankruptcy and then we’ll compare it to Chapter 13.

Chapter 7 bankruptcy eliminates your debts, and on paper, the discharge can be quite large. There are some rules which keep the size of your discharge down, but you can discharge tens of thousands of debt if not more by filing. Chapter 7 is the clear solution, as you can literally turn a debt into a memory.

Chapter 13 bankruptcy focuses on protecting your assets, property, and income rather than discharging debt. You pay some if not all your debt over a 3-5 year period, but you protect your home, car, and other assets.

Which saves you more money? It all depends on what you owe. Secured debts are monies owed like your home and car; if you can’t make payments, you stand to lose them. Unsecured debts, monies owed without collateral, include credit and medical bills. You can still lose assets or have your wages garnished with an unsecured debt. If you have secured debts for assets you simply cannot stand to lose, Chapter 13 bankruptcy can save you the most money. If, on the other hand, you have a high amount of unsecured debts – say a high credit card bill – Chapter 7 can clearly save you the most money.

See how that works? You either protect valuable property with Chapter 13 or you discharge high debt with Chapter 7. That should help you make the choice between the two. If you have more assets, Chapter 13 may be best. But if your problem is a huge debt you have no way of paying, you can save tens of thousands with Chapter 7.

Sometimes choosing a form of bankruptcy can be difficult. You should never make such decisions without financial and legal counsel. If you have no way of paying back a debt in a 3-5 year period, or if you stand to lose a lot of assets, it’s time to consider bankruptcy and hiring a lawyer. Do not undervalue the importance of getting financial help either; bankruptcy isn’t your only option.

Where should you begin? You’ve taken a big step in reading this blog guide. Now it’s time to make some calls. There are many bankruptcy lawyers who offer free consultations and case reviews to explain how they can help, especially online. Be sure to consult with several, to compare both in court and out of court experience, and find one you can afford.

Filed under: Bankruptcy Information — Tags: bankruptcy options, Chapter 13 Title 11 United States Code, Chapter 13 bankruptcy Atlanta, Chapter 7 Title 11 United States Code, Chapter 7 Bankruptcy in Atlanta, choosing a form of bankruptcy, Foreclosure, Georgia bankruptcy attorney, Georgia bankruptcy law — jmalewitz @ 11:55 am

Good News on Georgia Bankruptcy

In a September 2010 post on the Atlanta Journal-Constitution, some good news for Georgia residents is noted.

Before we get to that, let’s look over the problem. Georgia has been hit by some of the highest rates of foreclosure, bankruptcy, and unemployment in the country. According to RealtyTrac, 1 in about 250 homes are being foreclosed in Georgia every month, and that number has stayed high in recent months. In comparison, states like Texas have foreclosure rates of 1 in 800, a much better rate. That means, to be clear, that if you walk past 250 homes in Georgia, in one month one of those will go into foreclosure.

Unemployment is a problem across the nation, with almost 10% of the population being out of work. Some states are below 5% and many are below 9%. According to the Department of Labor, about 9.9% of Georgia residents are unemployed, not quite in the top 10 worst states, but close to it.

The real problem in Georgia has been with bankruptcies. Georgia has some of the highest bankruptcy rates in the country, especially when you compare some of our state counties to other state counties, which brings us to the Atlanta Journal-Constitution article by Henry Unger.

Unger’s point is on Georgia county rates for bankruptcy. Sometimes in the previous year, as many as seven to eight counties have been rated in the top 10 for bankruptcies nationwide. In other words, Georgia county foreclosure rates have been a statistical nightmare, having some of the worst counties in terms of personal bankruptcy of the entire country.

The good news? “In August, only four metro Atlanta counties — Newton, Henry, Douglas and Rockdale — made the Top 10 list, according to the National Bankruptcy Research Center,” writes Unger. He also points out how Atlanta area bankruptcies have gone down since last year.

It’s good news, but the reality is Georgia still has some of the highest rates of bankruptcy in the country. With the mortgage crisis, unemployment, and medical coverage still being a problem nationally and in the state, we have a long way to go.

This does not mean filing bankruptcy is a bad thing. It can save you a lot of money. Bankruptcy is not for everyone, but if you’re problem is high debt, and you are unemployed, filing Chapter 7 bankruptcy is an option. With the rate of foreclosures still quite high in Georgia, there has never been a better time to protect your home by using Chapter 13 bankruptcy.

If you want some more good news, consult with an experienced bankruptcy lawyer. A Georgia lawyer can save you time, money, and assets.

Filed under: Bankruptcy News — Tags: Atlanta Bankruptcy Attorney, Atlanta Bankruptcy Lawyer, atlanta bankruptcy stats, Bankruptcy News, chapter 7 bankruptcy rates, delay foreclosure, foreclosure help, Georgia bankruptcy law, Georgia bankruptcy lawyer, georgia bankruptcy rates, georgia bankruptcy updates, georgia foreclosure news — jmalewitz @ 12:53 pm

5 Steps to a Successful Chapter 7 Bankruptcy Discharge

Filing Chapter 7 bankruptcy in Georgia is about saving money. It’s no secret: bankruptcy solves problems, whether you have a home and car or not, whether you have a job or not, and no matter how much or how little you owe. But the discharge, the most important part of a Chapter 7 bankruptcy, takes legal help and knowledge. Hopefully this blog guide can give you some help and information when trying to eliminate debt.

Get the Right Lawyer
First off, you need an experienced Georgia bankruptcy lawyer. He or she is your right hand when it comes to discharging debt. A good lawyer has knowledge on the laws, such as Georgia bankruptcy eligibility, knows how best to discharge your main debts, gives you legal protection, and can stop creditor harassment immediately.

Know Your Rights
You have a right to file bankruptcy. It can save you from losing your home, car, and getting wage garnishments. Remember that bankruptcy is for more than those in debt; it can also help protect your home and car. You have options beyond Chapter 7, namely Chapter 13 bankruptcy. Sometimes you may not be eligible to file for Chapter 7, or maybe Chapter 13 is preferred in order to file.

You have a right to file bankruptcy, but sometimes Georgia state laws limit your choices. However, in most cases, it is your right to file for a bankruptcy discharge, save money, and protect your assets.

Discharge Major Debts
If you want to eliminate the most debts, you need to play your cards right. That means filing at the moment you have the most debt possible to discharge. Chapter 7 bankruptcy is all about timing; if you can file at the right time, you can use effectively. For example, you may owe only $10,000 in credit card debt, and have a job capable of paying this off in 3-5 years. However, you or a loved one have no medical coverage, and a huge bill is coming in the mail. In this case, by waiting until you get the bill you can discharge the most debt. You want to eliminate the majority of your debts, and this requires timing.

Protect Your Property
Chapter 7 bankruptcy may not be as effective in protecting your home and car, but remember you have Chapter 13 as an option too. Also, a little known fact is you can negotiate with creditors outside the bankruptcy. Say you file Chapter 7, and you have a home you want to keep. Because you may lose it in the bankruptcy, you can negotiate with the mortgage company outside the bankruptcy. If that does not work, you may also consider Chapter 13.

Avoid A Second Bankruptcy
Finally, filing bankruptcy should not be a regular event. You can only file so often too (every 8 years for Chapter 7). So take advantage of your right to bankruptcy only once. While sometimes a second bankruptcy is wise, if you can keep your finances in order, stay out of debt, and keep up on bills, you can avoid a second filing.

Filed under: Bankruptcy Information — Tags: after bankruptcy, Atlanta Bankruptcy, Atlanta Bankruptcy Attorney, Atlanta Bankruptcy Lawyer, Atlanta Chapter 13 bankruptcy attorney, bankruptcy discharge, Chapter 7 bankruptcy Atlanta, chapter 7 debt — jmalewitz @ 1:28 pm

Chapter 7 Bankruptcy FAQ for Georgia Home Owners

The misconception many have when filing bankruptcy is that you are giving up on your debts and losing assets. Technically, Chapter 7 is a discharge of debts, including credit, medical, and mortgage debts (and some more). However, you have more options than often thought when filing bankruptcy. First let’s go over the benefits of filing Chapter 7 bankruptcy.

Benefits
Chapter 7 bankruptcy has immense legal power to discharge you of debts of most any size. You owe $20,000 on your credit card – discharged. You just received a bill in the mail from a hospital for $50,000 – discharged. You are in over your head with a mortgage and simply want a fresh start; Chapter 7 can help. It not only discharges debts, but does so in a matter of months. You can be free of the majority of your debts.

Downsides
You can only file Chapter 7 every 8 years. You can only discharge certain debts: some like taxes, alimony, child support, and student loans cannot be discharged. If you cannot afford your mortgage, Chapter 7 may not be in your best interests. And technically, the more assets you own, the more you might lose.

Options for Georgia Home Owners
On the other hand, you may save tens of thousands of dollars by filing for Chapter 7 bankruptcy, and therefore might be able to afford a mortgage payment. And most Georgia home owners do not lose their homes in Chapter 7 bankruptcy. If you can keep paying the bills – more than possible after being free of most debt – you can keep your home, your car, and other assets. Sometimes you may in fact want these debts gone. If you are in way of your head, a bankruptcy discharge can eliminate what you owe on your home. You are still able to live there for several months because of the automatic stay, buying time to find a new residence.

Upside of Chapter 13
You may in fact want to keep your home, car, and other properties, but you cannot afford the current bill. If you fear foreclosure, and do not have the money to pay a full house payment along with other debts, you can file Chapter 13 bankruptcy. Foreclosure can be stopped, you can get more manageable payments, and you can keep other assets you want to avoid losing. If you have some income coming in, you can fund the repayment plan. If you have no income, Chapter 7 may be smarter.

Legal Help
Protecting your home is very possible in both Chapter 7 and Chapter 13 bankruptcy. You should not make these decision alone. You should research your options and your situation, perhaps with the help of a financial expert. You should then consider hiring an experienced Georgia bankruptcy attorney. A bankruptcy attorney is invaluable in following Georgia bankruptcy laws. He or she is your right hand in and out of court: dealing with creditors, protecting your property and assets, and helping you get a fresh start.

Filed under: Bankruptcy Information — Tags: Atlanta foreclosure, Chapter 7 Title 11 United States Code, Chapter 7 bankruptcy Atlanta, chapter 7 bankruptcy georgia, filing georgia bankruptcy, Georgia bankruptcy, Georgia bankruptcy attorney — jmalewitz @ 12:45 pm

Choosing Chapter 13 Bankruptcy Protection

Chapter 13 bankruptcy can not only protect your home but also buy you time on other debts. While the process has some disadvantages in comparison to Chapter 7 bankruptcy, choosing Chapter 13 is a very good move. This guide focuses on the best times to file for help, and how to benefit from your bankruptcy.

Your Right to Chapter 13 Bankruptcy
According to the legal resource NOLO, eligibility for Chapter 13 is based upon how much secured and unsecured debts you have. “Your secured debts cannot exceed $1,010,650, and your unsecured debts cannot be more than $336,90,” the site explains. Secured debts are debts for possessions, such as your home and car, where Chapter 13 bankruptcy is most effective. Unsecured debts are monies owed for items with no collateral, such as a credit card or medical bill. If your major problem is secured debts, and you want to keep your possession, Chapter 13 is best.

Your Chapter 7 Option
If on the other hand your problem is unsecured debts – for example, you owe $25,000 in credit card debt – then Chapter 7 may be your best option. You have a right to file Chapter 7 too, but this is based upon how much you make. It’s very possible to make too much money; if you make more than the Georgia median income as an individual or family, you will not be eligible.

Protecting Your Home
Chapter 13 bankruptcy protects your Georgia home when you are behind on payments and simply cannot keep up. If you have no way of getting current on your payments, Chapter 13 is smart. You can pay the back payments over the course of a debt repayment plan. In other words, if you’re falling behind, fear foreclosure, and want to keep your home, Chapter 13 can help by protecting your home.

Protecting Other Assets
Chapter 13 can also protect other major assets and help you catch up on other debts. Say you are a family of three, you and your spouse make $100,000 a year, but you cannot keep up with mortgage and car payments due to an unexpected medical or credit card bill. You cannot file Chapter 7 because you make too much money. In this case, Chapter 13 can buy your family time to pay on all your bills. Since you do have an income, you likely can reap the rewards of bankruptcy.

Finding Experienced Georgia Chapter 13 Bankruptcy Help
There are many decisions to be made when it comes to Chapter 13 bankruptcy. First and foremost is hiring an experienced Georgia attorney. It’s his or her job to educate you on the laws, to protect your home and other assets, and to ensure you can properly fund the repayment plan. You can find many good bankruptcy attorneys in Georgia by looking online. Or you can get a free consultation from us.

Filed under: Bankruptcy Information — Tags: bankruptcy protection, Chapter 13 Title 11 United States Code, Chapter 13 bankruptcy Atlanta, Georgia bankruptcy, Georgia bankruptcy attorney, Georgia bankruptcy law, Georgia bankruptcy lawyer, georgia chapter 13 bankruptcy, stop foreclosure in Atlanta — jmalewitz @ 1:32 pm

6 Myths About Professional Bankruptcy Lawyers

The bad news is that bankruptcy and foreclosure are still on the rise in Georgia. The good news is you still have many options, no matter how bad you are in debt or how close you are to foreclosure. The problem many have is spending more than they can afford in the first place. Because of price and experience differences, many myths abound about bankruptcy lawyers. This guide tries to explain both sides.

They Overcharge
As with any myth, there is some basis for truth. It’s a fact that some lawyers do overcharge. Some lawyers, on the other hand, charge much less than their experience merits. Bankruptcy law is not a service to make millions of dollars. It’s perhaps the lowest paying law field in terms of per client pay. Bankruptcy lawyers rarely expect to make more than $1,000 to $2,000 off a client who already lacks money. Where a DUI lawyer may cost you tens of thousands and a personal injury lawyer far more, many good Georgia bankruptcy lawyers charge minimum fees.

The Lawyer Has No Time
This has some basis for truth to. If you hire the lowest priced lawyer, he or she is likely making money by taking on dozens of clients at a time. However, experienced Georgia bankruptcy lawyers who charge more often put much more effort into ensuring your bankruptcy succeeds.

Bankruptcy Is Easy
Bankruptcy law is not an easy field. It has changed much in recent years with so many more bankruptcies being filed, especially in Georgia. True, it’s easier to represent a bankruptcy client than a murder suspect, but it still requires education, in court experience, and knowledge of the law.

Experience Does Not Matter
Experience does matter. There is really no basis for truth here, as experience always matters. The more complex your bankruptcy case is, the harder it will be for your lawyer. A lawyer with 10 to 20 years bankruptcy experience in Georgia will know far more than a lawyer with less time in and out of court rooms. You sometime pay more for experience, but just like you want your doctor to be professional and experienced, so too do you want a knowledgeable bankruptcy lawyer.

You Need No Guidance
You can do it yourself, right? Or can you consult with some financial experts and discharge your debts? This depends on how big your debts are, how much you stand to lose, and your income. You always need guidance from a lawyer when filing bankruptcy unless you’re a bankruptcy lawyer. If you fill out documentation wrong, it can cost you time. If you break laws knowingly, you can be charged with a crime. If you are in danger of losing your home to foreclosure, time is critical.

Bankruptcy Solves All Problems
Finally, we went over many common myths on professional bankruptcy lawyers. But now it’s time for a reality check. Filing bankruptcy in Georgia will not solve all your problems. It’s not always in your best interest. And a lawyer can only do so much.

Bankruptcy is an option for many. Some use it to protect homes and cars, others wages, still more to discharge debts that would cripple their families. The advantages are many, but remember to consult with an expert.

Filed under: Bankruptcy Information — Tags: bankruptcy facts, bankruptcy myths, Chapter 13 Title 11 United States Code, Chapter 13 bankruptcy Atlanta, Chapter 7 Title 11 United States Code, chapter 7 discharge, Georgia bankruptcy attorney, Georgia bankruptcy law, Georgia bankruptcy lawyer — jmalewitz @ 2:44 pm

Georgia Foreclosure Rates Go Up in 2010 – Bankruptcy Solutions

According to RealtyTrac, a leading foreclosure company, foreclosures went up in July of 2010. And Georgia still has some of the highest rates of foreclosure in comparison to all other states. There were 12,577 Georgia foreclosures in July of 2010. One in every 320 homes went into foreclosure, eighth highest in the country.

Why are so many homes going into foreclosure? And what can you do to avoid losing your Georgia home?

Why Foreclosure?
Why foreclosures are occurring may be for different reasons than you might think. Yes, the housing crisis is a major culprit in the rise of foreclosures nationwide. Yet there is far more to it than that. Unemployment rates are high, many are barely able to afford paying credit interest rates, many lack proper medical coverage, and some have lost thousands of dollars on their homes due to the downward spiral in pricing.

How To Stop It
There are many ways to avoid a foreclosure. In Georgia, with over 1 in every 300 homes being foreclosed every month, the main problem is debt. You likely owe more money on your home than it’s worth. Also, credit and medical debts are increasing, just as jobs are being lost across the state.

You do have options. You can try to sell the home for full value, hoping you get lucky (and you might). You can do what’s called a short sale and sell in order to pay back what you owe; you are selling for less, but will be clear of the debt. You can also get legal protection from creditors and for your home by filing bankruptcy.

Why Bankruptcy?
Bankruptcy gets a bad name. “Only people giving up file bankruptcy” may sound familiar. In fact, bankruptcy can save your home, and it’s your legal right to get help. It all depends on where you stand, and requires some expert financial and legal help. If you want to lose your mortgage debt, and you also have high credit and/or medical debt, filing Chapter 7 may be smart. If on the other hand you believe you can keep the home, but just want some time, Chapter 13 can help. Chapter 13 may be best because it protects you from foreclosure as you create a debt repayment plan you can afford.

Getting Financial Help
This can all get quite technical and requires some financial expertise. You can consult with a lawyer, but you should also consider speaking with some financial experts. This can really help your situation by giving you options.

Getting Legal Help
A lawyer is invaluable if you want to protect your home or discharge debt by filing bankruptcy. Georgia bankruptcy has numerous benefits. Just remember: while you do pay this lawyer money, he or she saves you far more. If you have a $150,000 home in danger of foreclosure, a Georgia bankruptcy lawyer can help you protect it. That’s the main reason for hiring a lawyer: he or she gives you financial protection.

Filed under: Bankruptcy Information — Tags: avoid foreclosure, bankruptcy financial protection, Chapter 13 Title 11 United States Code, Chapter 13 bankruptcy in Georgia, Chapter 7 Title 11 United States Code, Chapter 7 Bankruptcy in Atlanta, delay foreclosure, foreclosure process, Georgia bankruptcy attorney, Georgia Foreclosure Law, georgia foreclosure options — jmalewitz @ 2:30 pm

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