Creditors and Filing Georgia Bankruptcy

By nature, creditors are nice when paid, but once you start missing payments, the relationship can go downhill. Of course, it makes sense that creditors want their money, just like you want your money from an employer. However, many creditors and debt collection agencies treat you inappropriately. It’s something you deserve to be angry about if they’re calling you night and day, being rude, and generally ruining your day.

Is this really that big of a problem? Yes, creditor harassment is a very big problem. In fact, 2009 saw creditor harassment not only continuing, but on the rise. Even in 2010 creditor harassment is still a major problem. Studies pointed out that debt collection agencies and creditors in general caused more complaints in 2009 than in 2008. This is common during tough economies, you might think, but it doesn’t make it any better. For one, creditor harassment to most extents can be illegal. There are tens of thousands of complaints to the Federal Trade Commission every year. For example, in just the first half of 2009, the Federal Trade Commission Reported 45,000 complaints about debt collection agency practices, a significant increase over the first half of 2008.

What are creditors doing to cause complaints? It may seem obvious – calling people like you night and day. Contacting your work. Contacting outside family members. Calling you into the night or very early in the morning. Some are even contacting consumers asking for payments on things they never bought. Still more are saying people owe more money than they really do.  In the worst of cases, creditors are acting like some form of government or law enforcement agency, threatening seizure of assets like homes and cars if no payment is made.

So there are a lot of reasons for complaint. What can you do? If you’ve truly fallen behind in debts, you may think paying them gets creditors off your back. In fact, you may be paying on the wrong debts or nonexistent debts. You will never be arrested for debts, unless a court orders it (which is quite rare). If they threaten to take your wages, it’s usually beyond their ability to do so unless they win in court against you. If they threaten to take your home, there is some truth in this statement. Technically, creditors can take you to court and obtain a lien on your property; that’s if they win in court; chances of that are slim.

You can stop creditor harassment in a variety of ways. If you really have a lot of debt, filing Georgia bankruptcy is one move to make. But don’t do it just because you have creditors harassing you. If that’s the case, you can write the creditor a letter asking them to stop contacting you; by law they must agree to this. Bankruptcy has many advantages, and stopping creditor harassment is one. Creditors will have no reason to call you anymore once the courts are involved; if they continue to call you, refer them to your lawyer.

Creditor harassment works because they strike fear in you. Take back control of your life. If you’re unsure of your rights, contact a lawyer.

Filed under: Bankruptcy Information, Bankruptcy News — Tags: , , , , , , , , , , — jmalewitz @ 1:57 pm

Major Benefits of Atlanta Chapter 7 Bankruptcy

Filing bankruptcy in Georgia is unfortunately a bitter reality. Georgia has been in the top 5 for bankruptcies since the mortgage crisis began. What happened was sub prime mortgages, where people could no longer afford to pay on homes they likely should not have ever bought, forced many to start filing for help. Because of this, the economy was hurt, and there have been millions of bankruptcies since 2006.

There are some basic statistics on who’s filing for bankruptcy. The average filer is about 38, about half who file are couples, women file alone more than men, filers are actually better educated than most others, the majority have lost a job, and almost half have had major health problems. The numbers point out this isn’t only happening to one group, but to many. Both single men and women are filing, but a small percentage more are single women. Though job loss is a prime reason in many cases, the key result of many Chapter 7 bankruptcies in Atlanta and Georgia is a serious health problem which leads to medical bills.

That may all be a lot to swallow. Unfortunately, we are not quite through all of it, but in Georgia and other states jobs are starting to be created. More jobs mean more income which in turn means a better economy. Still, filing for bankruptcy is far from giving up. In fact, it’s about stepping up, deciding you want to rebuild, and taking the advantages.

What are the main advantages of Chapter 7 bankruptcy?

Medical Bills
If you got sick or someone you love got hurt, and you had no insurance, it’s very common to have tens of thousands in medical bills. Many have no medical coverage, and going to the emergency room or staying in a hospital for weeks can empty your checking account quickly. Chapter 7 bankruptcy can eliminate this debt in a matter of months.

Credit Card Bills
Just like medical bills, credit card debt can be discharged with a Chapter 7 bankruptcy. Many Atlanta residents had no problem with credit card payments until they lost jobs or were hurt. If you owe more money than you can ever pay, Chapter 7 bankruptcy is very smart.

Mortgage Debt
The bad news is you may lose your home in a Chapter 7 bankruptcy. The good news is that you can either negotiate to keep it or file for bankruptcy and discharge any debt you have. If you discharge the debt, you will likely lose the home and have to find a new residence. You do get some time before that happens. If you decide you want to file bankruptcy and keep your house, you can negotiate with the creditor and make payments on it.

No Job
If you have no job, Chapter 7 bankruptcy is very smart. You have little to no income coming in, so you rarely can pay on debts. Chapter 7 can discharge them and give you a fresh start. When you start working again, your paychecks can be used for something other than credit, medical, and mortgage debt.

It’s Cheap
Finally, it costs you a fraction of the amount for an Atlanta Chapter 7 bankruptcy than your debts actually are. You hire an experienced lawyer, and that does cost you money. You need an experienced bankruptcy lawyer who can make your case for Chapter 7 case successful. They cost about $1,000 to $2,000. Then you pay a court fee of $299. That’s it. You can have $50,000 in debt and be free of it for a fraction.

Filed under: Bankruptcy News, Economic News — Tags: , , , , , , — jmalewitz @ 2:48 pm

How Bankruptcy Helps with Atlanta Mortgages and Foreclosures

While the economy is improving, the simple fact is foreclosure rates were “scary” high in 2009. The number of foreclosures in Georgia, especially Atlanta, were some of the highest in the nation, accounting for a good number of the total for every state.

Atlanta particularly has been hit hard, perhaps one of the hardest of any city in the U.S. Metro Atlanta in particular had many subprime mortgages–and now these mortgages are nine times more likely to go into foreclosure.

The problem is in how these mortgages were laid out. Obviously, it was a big mistake to allow such a high number of subprime mortgages, but it happened across the country. Even scarier, most of these Atlanta mortgages are going the way the rest of the country is.

Worry not, because the economy is clearly improving. While the last quarter of 2009 was very high in terms of foreclosures, especially in Atlanta, the economy is slowly rebuilding and unemployment lowering.

That doesn’t help you unless you can avoid losing your Atlanta home. This post will walk you through the process of choosing between forms of personal bankruptcy, hiring a lawyer, and avoiding foreclosure.

Chapter 7 Bankruptcy – The Good and Bad
The good news with Chapter 7 is that you can at a minimum buy extra time to live in your home before foreclosure, and the mortgage can be discharged as part of filing. The bad news is, you will most often lose your home through foreclosure. This is supposed to help avoid foreclosure, right? It’s still good to consider Chapter 7. An experienced Atlanta attorney can tell you 1) if you’re eligible and 2) what you can save. If you are a single resident of Atlanta, for example, you cannot make more than $40,546 and file.

Chapter 13 Bankruptcy – The Answer to Foreclosure
Federal law allows most all cases to be taken under Chapter 13 unless you have hundreds of thousands in debt. This is the same across every state in the country.

Chapter 13 is truly the answer to saving your home. First,  this givesyou protection. Immediately after filing at the Northern Georgia Bankruptcy Court (for Atlanta residents), an “automatic stay” will be given by the court. This effectively delays and potentially stops the foreclosure so the bankruptcy proceeding can occur.

Next, you can restructure your payment plan to your Atlanta lender. You must stay current on your mortgage in order to keep your home, and you also should file Chapter 13 before you fall too far behind in payments or it won’t work (if the foreclosure process is started, you cannot stop it in most cases).

Hiring an Atlanta Lawyer
The State Bar of Georgia and your computer are all you really need in order to get help avoiding foreclosure. You want a lawyer who specializes in bankruptcy, has experience in helping avoid foreclosures, and can educate you on the advantages and disadvantages. Price may be an issue, so be sure to ask the fees before hand. Filing bankruptcy itself is very cheap, but lawyers can sometimes be expensive.

Filed under: Bankruptcy Information, Bankruptcy News — Tags: , , , , , , , — jmalewitz @ 12:40 pm

Common Debts Georgia Residents Can Discharge with Bankruptcy

Historically, Georgia has not only been in the top 5 for bankruptcy filings, but also Georgians have been subject to low credit scores. But the good news is, Georgia foreclosures are going down, unemployment seems to be slowing, and bankruptcies are helping many get a fresh start.

A common question we hear is, what common debts can be discharged by filing bankruptcy? The advantage of bankruptcy, especially personal Chapter 7, is that you can eliminate the majority of your debts in a matter of months. However, you must be eligible, certain debts cannot be discharged,and you may lose assets.

What common debts can be discharged?
In some cases, you can discharge almost all of your debt. There are some debts you cannot discharge, including: taxes, alimony, and child support. However, you can technically discharge your mortgage, car payment, credit card debt, medical bills, and some other debts you owe.

Bear in mind, when you discharge debts, it’s not a free deal. While most of the time you can discharge debts, those debts come with a price. If you discharge your mortgage, your home will most likely be taken. If you cannot stay current on your home, you may have no other choice. If you discharge your car, technically this can be sold as well. This is Chapter 7 bankruptcy law, so let’s go over that and how Chapter 13 can help you.

Why file Chapter 7?
Chapter 7 bankruptcy is a liquidation. The biggest benefit is getting a fresh start. You may lose some if not many assets, but in most cases you lose nothing and discharge thousands if not tens of thousands in debt. If you file Chapter 7, creditors have no more reason to contact you. A common Georgia debt is credit card debt, and with Chapter 7 bankruptcy you can discharge all your debt for a minor loss.

Why file Chapter 13?
Chapter 13 bankruptcy on the other hand has the opposite effect: you do not liquidate your property. You want to keep your property in most cases. Sometimes you may not be eligible for Chapter 7 and be forced to file under Chapter 13. Why? If you make too much, the current Georgia median income is how this is factored in, you won’t be eligible for chapter 7.

Now, Chapter 13 has many advantages. You’ve been paying off your home for years if not decades. You love the place, but fear foreclosure is on the horizon. Now is the time to act, because if you wait to long and the bank forecloses, you have little choice but to let them take it. If you act beforehand, if you hire an attorney and file under Chapter 13, you can save your home and car. This works well if you have the money, a job, and can afford to keep up with the payments. Chapter 13 allows you to pay debts over a 3-5 year span, keep your car and home, and rebuild your finances.

Why not do nothing?
In some cases, people do nothing because they have nothing. While this strategy may seem odd, it does work in some cases. If you have lots of debt but few assets, it’s an option. However, most will want to take action immediately. Doing nothing can be very dangerous, though it’s an easy step.

What should you do? We recommend you consider your personal bankruptcy options, hire a lawyer, and immediately act to protect your financial future.

Filed under: Bankruptcy News — Tags: , , , , , , , , — jmalewitz @ 1:24 pm

How to File with Georgia Bankruptcy Court and What Fees Are Involved

As recorded by US Government Courts, the fees for filing bankruptcies are:
Chapter 7 Bankruptcy – $299
Chapter 11 Bankruptcy – $1,039
Chapter 12 Bankruptcy – $239
Chapter 13 Bankruptcy – $274

These figures are the same in every state in the United States, including Georgia. It does not include fees for lawyers, which can vary depending on experience and time involved in your filing.

For personal bankruptcy, you only need to consider Chapter 7 and Chapter 13. So we know Chapter 7 is $299 to file in any court, including Georgia Bankruptcy Court, and Chapter 13 is $274 in the same court.

How do you file bankruptcy in Georgia?
There are three courts which handle bankruptcy for all counties of the state of Georgia. These are Georgia Middle District Court, Georgia Northern District Court, and Georgia Southern District Court. Each court has offices across their districts, not just one sole court. And each court handles multiple counties in its area for filing bankruptcy.

To file bankruptcy in the state of Georgia, you need to first see if you’re eligible. Most are eligible for either Chapter 7 or Chapter 13. Some, however, are eligible only for Chapter 13 bankruptcy in Georgia. This is because, if you make too much, you are not eligible for Georgia Chapter 7 bankruptcy.

Let’s go over that in detail. It depends on how many residents live in your home, from 1 to however many you have. For a single resident, the current median income for Georgia $40,691.If you make less than that, you are eligible for Chapter 7 bankruptcy. If you make more than that, new bankruptcy laws make it clear you will likely have to file under Chapter 13 bankruptcy.

The more residents in your family, the higher the median income  is. For example, if you have four residents in your home, the median income in Georgia is $68,502. These will change every year.

How do you file for Georgia bankruptcy?
The first step is hiring a professional bankruptcy attorney in your area who can help. There are many documents, laws, and guidelines you have to go over. If you file Chapter 7 bankruptcy, it first must be clear you are eligible, what assets you have which you may lose, and if it’s the best option for you. On the other hand, if you want to file under Chapter 13 bankruptcy, a much longer process but still effective, you need to come up with a debt repayment plan and prove to the courts you can follow it.

How do you hire a Georgia bankruptcy lawyer?
Since each state has differences in precisely how the laws work, you should immediately consult with a professional in Georgia. You can ask those you know who work in law for references, you can search on sites and blogs like this for experienced lawyers, and you can begin calling and emailing top prospects. Once you’ve made a list, you can interview them all. Bear in mind, you want an experienced Georgia bankruptcy attorney who 1) isn’t overloaded with clients and 2) can immediately consult you on the best options.

Filed under: Bankruptcy News — jmalewitz @ 12:01 pm

Filing Personal Bankruptcy in Cartersville

Thousands of Georgia residents have found themselves unable to pay their home mortgage, credit card or medical expenses and having exhausted all other financial options, have found financial relief by filing personal bankruptcy. If you are considering filing bankruptcy in Cartersville and you need information, a Cartersville bankruptcy lawyer can help.

When is the right time to file bankruptcy? There may not be a right answer, but a Cartersville bankruptcy attorney can help evaluate your financial situation and decide if you are eligible to file Chapter 7 or Chapter 13 bankruptcy.

Filing Chapter 7 bankruptcy in Cartersville may allow for the immediate discharge (within 4 to 6 months) of most or all of your unsecured personal debt. Filing Chapter 13 bankruptcy may allow for the discharge of your debt after you have completed a three to five year bankruptcy repayment plan. Filing bankruptcy is not the best solution for everyone, but for some people it may be the perfect way to get a fresh financial start.

Filing Chapter 7 Bankruptcy in Cartersville

Filing Chapter 7 bankruptcy in Cartersville, Georgia, generally allows for the discharge of most filer’s debts within four to six months. Certain debts are not dischargeable, and these debts are outlined under federal bankruptcy laws.

The first step in filing Chapter 7 bankruptcy in Gainesville is to contact a Gainesville bankruptcy lawyer who can determine if the filer is eligible for Chapter 7 bankruptcy. The second step is to file the bankruptcy petition in the appropriate bankruptcy court. The court reviews the petition (information about the filer’s assets, creditors and debts), and if it is accepted the court appoints a trustee to the case and schedules the 341 Creditor’s Meeting.

The trustee becomes the intermediary between the creditor and the filer and is responsible for liquidating the filer’s non-exempt assets. After the asset liquidation, the trustee will repay the creditors with the proceeds from the liquidation in the priority order outlined by bankruptcy law.

Filing Chapter 13 Bankruptcy in Cartersville

Filing Chapter 13 bankruptcy in Cartersville may stop home foreclosure, wage garnishments and property repossession by allowing the filer to restructure their debt payments with a new repayment schedule. The plan will spread the debt payments over a three to five year period. Debts will not be discharged until the fulfillment of the debt repayment schedule, but the filers may be able to keep their assets and avoid property liquidation.

Cartersville filers must have a dependable income source to make payments under their bankruptcy repayment plan. To qualify for Chapter 13 bankruptcy filers also can not have unsecured debts above $269,250 or secured debts above $807,750.

Personal Debts Not Eliminated By Filing Personal Bankruptcy in Cartersville

Filing bankruptcy in Cartersville does not discharge all personal debt. Federal bankruptcy law identifies all types of dischargeable debt (which is the same for all states). The following debts are not discharged by filing either Chapter 7 or Chapter 13 bankruptcy in Cartersville, Georgia:

  • Most back taxes
  • Child support and alimony payments
  • Certain student loans
  • Purchases of luxury items within ninety days of filing personal bankruptcy in Cartersville
  • Fines owed to federal or California government agencies
  • Debts generated from fraudulent activity
  • Recent cash advances of $825 within 70 days of filing personal bankruptcy
Filed under: Bankruptcy News — Tags: , , , , , , , , — admin @ 11:41 am

Feds Going After Mortgage Aid Firms

In the hopes of saving your home from foreclosure, you may have sought help from one of the many reputable firms that are helping homeowners who are in dire straits. Then again, you may have contacted one of the two companies that are accused by the Federal Trade Commission of charging large fees and providing little or no assistance.

The FTC announced today that it has filed charges against Nations Housing Modification Center and Infinity Group Services. The government also accuses the two companies of posing as government agencies.

Phony foreclosure rescue scams cost you valuable time and money. Talk to a bankruptcy attorney today to find out how Chapter 13 bankruptcy stops foreclosure and restructures your debts so that you can afford to stay in your home.

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Filed under: Bankruptcy News — Tags: , , , , — Rob @ 10:04 am

Rev. Jackson In Atlanta To Protest Foreclosures

Around 50 members of Rainbow PUSH Coalition including the Rev. Jesse Jackson held a prayer vigil on the steps of the Federal Reserve bank in Atlanta yesterday.

Foreclosure rates in July were up 32 percent over last year’s numbers, according to RealtyTrac a California based firm that tracks foreclosures nationwide.

The group complains that taxpayers are footing the bill to rescue banks that are still foreclosing on homes in record numbers. Jackson complained to the Atlanta Journal Constitution that “we are watering the leaves, not the roots of the economy.”

Rev. Jackson may be right. Homeowners who are in danger of losing their home shouldn’t feel trapped or resigned. They should find an Atlanta bankruptcy attorney and plot a course to stop the foreclosure proceedings on their home.

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Filed under: Bankruptcy News — Tags: , , , , — Rob @ 12:39 pm

Create Your Own Financial Recovery

A Georgia bankruptcy attorney might not be the first person you would turn to when seeking financial guidance, but consider the latest data. Georgia’s unemployment rate reached 10.1% in June, a record high.

With more unemployed workers than jobs available, a serious and often cyclical problem is created. A job loss means the consumer has significantly less disposable income to spend. As a result industries across the state such as retail and hospitality see less revenue from consumers. These businesses are forced to make their own budget cuts, often leading to more unemployed citizens.

This domino effect can be stopped, but it will take the effort of each household to reverse the trend. How can you help reverse the trend and turn Georgia’s economy around? Look for solutions to help you pay off your debt, while not spending beyond your income.

Consider filing for bankruptcy as an effective method to reorganize your finances. A local attorney with expertise in Georgia bankruptcy rules can determine if you are eligible. If you own a home and are facing foreclosure as a result of your job loss, Chapter 13 Bankruptcy can delay a foreclosure for the period that you are in bankruptcy. Through the bankruptcy process, you can create a payment plan which helps you pay previous mortgage payments while still allotting money for your basic living expenses.

An attorney with expertise in Georgia bankruptcy law will make you aware of the options you have, based on your unique situation. Georgia adds additional laws beyond federal mandates for filing bankruptcy, so your ability to return to financial success needs to be in the hands of an attorney familiar with the Georgia bankruptcy code.

We expect corporations to have a plan for becoming financially solid, but we should also equip ourselves with the information necessary to make the right personal financial decisions. Create your own financial recovery by partnering with a trusted Georgia bankruptcy attorney.

Filed under: Bankruptcy News — Tags: , , , — Lance @ 11:12 pm

Bankruptcy Rate Climbs 36 Percent In First Quarter

After posting the highest number of bankruptcy filings in a year last year, the first quarter numbers in the U.S. Bankruptcy Court’s Northern Georgia District, which includes the Atlanta Metro area, rose almost 36 percent in the first quarter. 

The total number of bankruptcies filed rose to 12,059 in January, February and March of 2009, up from 8,878 in the same time period in 2008.

The jump is seen mostly in Chapter 7 cases, which grew 61 percent, according to court records.

Filed under: Bankruptcy News — Tags: , — Rob @ 7:52 am


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