• 391,000 Initial Unemployment Claims Filed in the Week that Ended 9/24/11
• 428,000 Revised Claims Filed in the Week that Ended 9/17/11
• 37,000 Less Initial Unemployment Claims 9/24/11 versus 9/17/11
• Economist Forecasted 419,000 Initial Unemployment Claims for 9/24/11

Other updated stats include continuing claims such as people that are filing for the second week and up until the time that benefits currently run out, which is 99 weeks. Continuing claims decreased by 20,000 to 3,729,000 for the week the ended on 9/17/11, which is the most recent available data. Among those not currently receiving unemployment benefits are about 14 million people in the U.S.

How does Unemployment Affect Bankruptcy Claims?
You would think that as unemployment went up, claims for Chapter 7 bankruptcy and Chapter 13 bankruptcy would increase too. Not always. In fact, many creditors are putting less pressure on consumers, which is slowing the expected bankruptcy rate. For example, home foreclosures have been slowed. Also, for those that have limited financial resources, the ability to pay to file for bankruptcy is lower.

As the economy turns around and consumers have more assets to lose. For example home prices have been rising now for four months straight. It is the increased risk of losing assets such as a home that has many Georgia bankruptcy lawyers expecting that bankruptcy claims, such as Chapter 13 will increase in the near future.

3 Million Unfilled Jobs, 14 Million Unemployed
Current data shows that there are 3 million jobs in the U.S. that are unfilled. Many employers are reporting that they cannot find workers with the proper skills for these jobs. With about 14 million people unemployed in the U.S., it is going to take alot of jobs to turn around the unemployment rate. Until then, millions of Americans are going to continue struggling financial. Many of them will consider either a straight bankruptcy (Chapter 7) or a Repayment Plan (Chapter 13) as an option.

Unemployment is one of the top reasons people seek information about bankruptcy. If you have questions about bankruptcy, contact Berry & Associates. We have 10 offices located throughout the Atlanta area. Call 404-235-3328 or 1-800-414-3328 to discuss getting a free consultation.

Question: I Have $100,000 in Medical Bills, Should I File Bankruptcy?

Answer: Perhaps. It depends on a few criteria. First, do you have assets worth protecting such as a home or other personal property items of value? If yes, then a straight bankruptcy, also known as a Chapter 7 bankruptcy is not going to be a preferred option. Instead a Chapter 13 bankruptcy, also known as a “repayment plan” is an option worth exploring between you and your lawyer (Read What is a Bankruptcy Repayment Plan?). A Chapter 13 repayment plan is a good option if you have the means of paying back the $100,000 medical bill debt over the course of 3-5 years. If you do not have the means to repay the debt, then a Chapter 7, or straight bankruptcy is a good potential option.

 To summarize, if you are considering your personal bankruptcy options for handling your medical bills, there are two options.

1. Chapter 7 (straight bankruptcy)
2. Chapter 13 (repayment plan)

A bankruptcy lawyer is going to be an excellent advocate as to which option, if either, is appropriate for your situation. Deciding to file is not easy, which is why you need to consider how filing for bankruptcy helps you with your short term financial situation and consider the affect it is going to have on your long term financial situation as well. For many with a $100,000 medical debt and no short term method of repayment, having either a straight bankruptcy or Chapter 13 repayment plan can be a means to eliminate debt. Of course the same could apply with lower medical debt amounts, such as $50,000 or higher medical debt amounts such as $250,000.

 - Related: Read High Medical Debts are Forcing Me Into Bankruptcy
 - Related: Read What Breast Cancer Bankruptcy Options Exist for Medical Debt?
 - Related: Read How a Bankruptcy Lawyer can Help with Breast Cancer Debt

Contact Berry & Associates About High Medical Bill Debt:

Have high debt from medical bills? Think bankruptcy is a good option for you? Contact Berry & Associates to review your options. With 10 metro Atlanta locations available, there is a Berry & Associates office near you. We specialize in Chapter 7 and Chapter 13 personal bankruptcy cases.

Know Your Rights:
As a citizen you are protected from harassing techniques that Atlanta debt collectors may use. There is actually a law that covers this specifically. It is called the Fair Debt Collection Practices Act. Also known as FDCPA, the Fair Debt Collection Practices Act is a federal law that prohibits specific, aggressive collection practices. Georgia has additional state laws that prohibit debt collection agencies from harassing techniques as well.

Related: Read What is the Fair Debt Collection Practices Act 

Is Bankruptcy a Good Option:
A Georgia bankruptcy lawyer can be an excellent advocate. Your bankruptcy lawyer will review your financial situation, and discuss various options on how to deal with creditors, including ensuring that harassing phone calls stop. If you are a good candidate for bankruptcy, he can help you prepare the correct documentation, represent you in court and help determine what type of repayment plan is appropriate (if you are filing Georgia Chapter 13)

 - Note: if you are filing Georgia Chapter 7, you will not have a repayment plan. Items that you can keep under Chapter 7 are different than under Chapter 13.

Stop the Harassing Calls:
If you are receiving threatening or harassing debt collection techniques, talking to a lawyer from Berry & Associates can be a great help. We will give you confidence in dealing with those threatening creditors and help ensure they stop contacting you. In some cases, legal action can be taken against agressive creditors that have violated FDCPA (Fair Debt Collection Practices Act).

How to Take Action Against Harassing Debt Collection:
Have harassing calls? Think bankruptcy might be a good option? Contact Berry & Associates and stop the harassing phone calls. Call us at 404-235-3328 or 1-800-414-3328.

Question: Is a 401k Plan Exempt in a Georgia Bankruptcy Filing?

Answer: Yes. In Georgia, several bankruptcy judges in Atlanta have upheld the decision that both 401k plans and pensions are exempt. Meaning you are allowed to keep these assets even if filing for bankruptcy in Georgia.

Why is a 401k Plan an Exempt Asset in a Georgia Bankruptcy Filing?
Retirement accounts such as 401k plans have a penalty if the account holder makes an early withdrawal. Atlanta bankruptcy lawyers have regularly been able to petition judges to keep 401k plan assets exempt. By keeping these assets exempt, a bankruptcy lawyer is able to help protect their client’s retirement and keep their 401k assets separate from being eligible to be used in a repayment plan.

Have a question about how to protect your 401k plan through a bankruptcy filing in Georgia? Considering a Chapter 7 or Chapter 13 personal bankruptcy filing? Berry & Associates has 10 bankruptcy law offices throughout metro Atlanta. The law firm has helped over 25,000 clients with personal bankruptcy cases including Chapter 7 bankruptcy and Chapter 13 bankruptcy.

Lowest Employment Rate Since WWII:
“Employment among young adults 16-29 was 55.3 percent, compared with 67.3 percent in 2000; it’s the lowest since the end of World War II.”

Other Stats:

• 5.9 million Americans between 25-34 live with their parents (25 percent increase since the start of the recession
• Men are twice as likely to live with their parents
• Unemployment is worst among non-college educate men via blue collar jobs in construction and manufacturing and transportation being greatly reduced
• Marriage fell to a low, 51% of adults 18+ (down 6% from 2000)
• Marriage rate for adults 25-34 was 44%, which is a new low
• Nearly 1 in 8 American households receives government aid

Bankruptcy and The Lost Generation:
What will be the affect of bankruptcy onto the lost generation? Though to say, because it may be too soon. With young people graduating college with record amounts of student loans and credit card debt the odds are already against them. But will this result in more bankruptcies in the near term for the lost generation? Probably not. If it did in the short term you would likely seen more Chapter 7 bankruptcy cases as they attempt to remove high credit card debt. Of course those that do not have employment may also not have the ability to afford filing fees. Chapter 13 bankruptcy rates could potential go up with this generation with time, but this will require the acquisition of more secured credit, such as homes before these rates would likely increase within the lost generation.

The long term iceberg out there is the affect this will have on their retirement. For example young people are concerned they may not have Social Security to fall back on during their retirement and many are unable to fund a 401k like they would prefer.

Question: Does a person with $100,000 in credit card debt benefit more from Chapter 7 or Chapter 13 bankruptcy?

Answer: Depends. More information is needed to fully answer this question. It really depends on a person’s income, relative to their other assets and debts. There are some that could repay $100,000 in credit card debt over time, but these examples are more rare than frequent. A Chapter 7 or “straight bankruptcy” can be a good option for a person with limited assets and limited means of repaying. In these cases it might be easier to “walk away” because you don’t have alot to lose and cannot repay the debt even over the course of a few years. If you have 3-5 years to repay the debt, then working with a bankruptcy lawyer on a “repayment plan,” which is formally known as a Chapter 13 might be a good option. For those that have a higher means and want to protect certain assets such as a home, Chapter 13 can be a plan worth researching in more detail.

This example is not uncommon, but is higher than the average person filing for bankruptcy in Georgia. Many people file for bankruptcy with far less credit card debt than the example of a person with $100,000 worth of credit card debt. People typically have other debts other than credit card debt that result in them pursuing a potential bankruptcy filing. Depending on your income level and ability to repay, $50,000, even $25,000 worth of debt may be enough to consider either Chapter 7 bankruptcy or a Chapter 13 repayment plan.

Contact Berry & Associates for Free and Learn about Credit Card Debt Bankruptcy Options:

Think your credit card debt is high enough for a potential bankruptcy? As you learned in this entry you don’t need $100,000 in credit card debt to benefit from bankruptcy protection in Georgia. To explore what options exist and what is the right option for your situation, contact Berry & Associates. Wither 10 metro Atlanta bankruptcy offices available, we have experience lawyers at a local office near you.

Question: What is a Bankruptcy Repayment Plan?

Answer: A repayment plan is another way of describing a Chapter 13 personal bankruptcy plan. In this type of scenario you would work with a Berry & Associates lawyer to create a 3-5 year plan that would allow you to pay off your debts. At the end of the plan you would receive a discharge. This plan is often used when a person is trying to save a home from foreclosure.

Notables in a Chapter 13, aka a Bankruptcy Repayment Plan:

A bankruptcy repayment plan will stop the foreclosure process and allow you to catch up on past due mortgage payments over the course of 3-5 years. In a Chapter 13, you will also be able to get back in control of your finances and to ‘do the right thing’ when it comes to repaying your debt. Unlike a Chapter 7, a Chapter 13 bankruptcy can allow you to maintain possession of certain types of properties. These options will be discussed when you talk to your bankruptcy attorney.

Have questions about a bankruptcy repayment plan? Contact the lawyers at Berry & Associates to discuss your situation and if a repayment plan is the best option for you.

Since this is a liquidation plan, you will be responsible for liquidating many of your assets. You will be able to keep some assets (your lawyer will help you sort through what you can keep). See the Chapter 7 exempt property blog for more details. In general you will be able to keep a car, some clothing, household items and furniture. In addition you will be able to keep tools required to perform your job and a limited amount of jewelry (including wedding bands) within a particular value. There are other examples of exempt property that you are able to keep, which your lawyer will be able to go into detail with you after reviewing your financial questionnaire. Other types of property will be considered “non-exempt,” which means you will need to give it up.

Common Examples of Non-Exempt Property:

• Second motor vehicle (car or truck)
• Motor vehicle of a high value
• Second home, including vacation homes
• Collections of monetary value such as coins, stamps, etc
• Family heirlooms that have monetary value
• Financials such as cash and bank accounts
• Investments such as stocks, bonds, CDs, mutual funds

If you have questions about what personal items that you can and cannot keep, you are not alone. People ask these types of questions to their bankruptcy lawyer all the time. Remember to be open and honest with your assets when you talk to your lawyer and he will help you protect as much personal property as you are allowed under the bankruptcy law.

Berry & Associates is a leading Atlanta bankruptcy law firm. They have 10 offices throughout metro Atlanta that help clients with Chapter 7 and Chapter 13 bankruptcy cases.

Common Examples of Chapter 7 Exempt Property:

• Single car or truck (up to a certain value)
• Essential clothing
• Essential household items
• Essential home appliances
• Basic furniture
• Certain jewelry (including wedding rings) >> value is limited
• Tools required to perform your professional job**

** A computer may qualify as exempt property, including as a tool potentially.

In the above examples you’ll notice that there is alot of potential judgment that needs to occur to determine what is exempt and who must be sold. Having a skilled lawyer that is familiar with the bankruptcy code will help ensure you keep as much personal property as possible. Chapter 7 is a great opportunity for a fresh start, but that does not mean you shouldn’t focus on maintaining as much personal property as possible. Remember when discussing the personal property that you own with your lawyer to be open and honest. Your lawyer is there to help you and the more information you provide him, the better work he and his team will be able to you.

Related: Read about Chapter 7 Debts that can be Discharged.

For additional questions or to speak to a Georgia Chapter 7 bankruptcy lawyer, contact Berry & Assocaites. With over 10 offices located throughout metro Atlanta there is sure to be an office near your home.

Chapter 7 Debts that CAN be Discharged

• Credit card bills
• Collection agency bills
• Rent (past due amounts)
• Signature loans (personal loans that are unsecured debt)
• Student loans (non-federally insured only)
• Past due utility bills

Chapter 7 Debts that CANNOT be Discharged

• Income taxes (individual) that are unpaid and assessed within the last 5 years
• Federal income taxes (filing no return or fraudulent return only)
• Luxury good credit card purchases within the last 60 days of filing (for amounts over $1,075, including services)
• Student loans (federally insured only)
• Alimony and child support
• Drunk driving conviction debts

Secured Debt (ex. Cars & Mortgages):
For those with secured debt such as a car loan or mortgage. You must decide if you want to keep the property. If yes, you must reaffirm the debt to take it out of bankruptcy. Make sure you discuss your goals for any collateral debt such as a car loan or mortgage with your Georgia Chapter 7 lawyer.

Contact Berry & Associates for questions about Chapter 7 debts that can be discharged. Berry & Associates maintains offices in 10 locations throughout metro Atlanta.