Filing Personal Bankruptcy in Atlanta

Thousands of Atlanta, Georgia, residents are unable to pay their bills or meet their financial obligations due to the economic downtown. If you are facing home foreclosure or unable to pay your credit card bills you are not alone.

No one wants to have to file bankruptcy and it is a difficult decision which should only be done after your other financial options are exhausted, but filing bankruptcy in Atlanta may allow you to dismiss most or all of your unsecured debt or develop a repayment schedule to repay your debt and allow you to make a fresh financial start. If you have questions about filing bankruptcy in Atlanta, an Atlanta bankruptcy attorney is available to answer your questions and help you determine if you can file Chapter 7 or Chapter 13 bankruptcy.

Filing Chapter 7 Bankruptcy in Atlanta

Filing Chapter 7 bankruptcy in Atlanta may allow a filer to eliminate or discharge most of their unsecured personal debt. Dischargeable debts are determined by federal bankruptcy law (not all debts are eligible for discharge), but qualifying debt may include medical bills and credit card debt.

The first step in the Chapter 7 bankruptcy process is to contact an Atlanta bankruptcy lawyer who can determine through the bankruptcy “means test” if the filer is eligible to file Chapter 7 bankruptcy in Atlanta. If they are, the Atlanta bankruptcy attorney can file the bankruptcy petition in the appropriate bankruptcy court. The petition contains a list of the filer’s debts, non-exempt and exempt assets and the names of their creditors.

The bankruptcy court will review the petition, schedule the 341 Creditor’s Meeting and assign a trustee to sell the filer’s non-exempt assets and take the money from the sale and repay the filer’s creditors. Most debt is discharged within four to six months after the petition is filed.

Filing Chapter 13 Bankruptcy in Atlanta

Chapter 7 bankruptcy is a liquidation of assets. Chapter 13 bankruptcy is a reorganization of debt. One benefit of filing Chapter 13 bankruptcy in Atlanta is the filer may be able to retain their property and stop home foreclosure. Filing Chapter 13 bankruptcy may allow them to avoid selling their assets, and instead, allow them to restructure their debt payments over a three to five year payment period.

Not all residents can file Chapter 13 bankruptcy in Atlanta. Filers will need a steady income source to qualify for Chapter 13 bankruptcy and can not have secured debt exceeding $807,750 or unsecured debt exceeding $269,250.

Personal Debts Not Eliminated By Filing Personal Bankruptcy in Atlanta

Filing Chapter 13 bankruptcy or filing Chapter 7 bankruptcy in Atlanta does not discharge all personal debt. Debts not eliminated by filing bankruptcy are documented in federal bankruptcy law and are the same for all states. Filing bankruptcy in Atlanta, Georgia, will not eliminate the following personal debts:

  • Most back taxes
  • Child support and alimony payments
  • Certain student loans
  • Purchases of luxury items within ninety days of filing personal bankruptcy in Atlanta
  • 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 Information — Tags: , , , , , , , — admin @ 1:35 pm

Foreclosure Rate Still Climbing in Atlanta Metro

Metro Atlanta saw a 10 percent increase in foreclosures from November and a 77 percent increase over last December, according to numbers gather by Equity Depot. The company says that 10,341 foreclosure notices were published in the 13-county Atlanta metro area. That number brought the year-end number to a record shattering 117,107 foreclosure notices published this year.

Barry Bramlett, president of Equity Depot, told the Atlanta Journal Constitution that fewer residential properties were involved in the December notices and that commercial real estate, including hotels, office space and manufacturing sites, are on the rise.

“Maybe we have reached the apex, but it is still unbelievable, in my opinion,” Bramlett said when describing the numbers.

The Obama Administration has promised that homeowners who need help staying in their homes, will get the help through mortgage modifications, but few have seen this help in the year since plans were announced.

Bankruptcy filings continue to climb as people look for any way possible to keep their home and stop foreclosures.

Filed under: Economic News — Tags: , , , , , , , , — Rob @ 1:01 pm

Mortgage Modification Program Gaining Momentum?

Many homeowners struggling to make the payments on their mortgage were promised help from President Barack Obama’s Making Home Affordable program, but only 20 percent of those eligible for the program have begun trial modifications on their home loans, according to information released by the Treasury Department.

Once the homeowner is in the trial modification, they must stay current on their new mortgage payment for three months they can apply to turn the trial into a permanent modification.

A story about the issue in the Wall Street Journal, one mortgage servicing company in has 39,000 borrowers who are up to date on their trial payments, but only around 500 have received permanent modifications. It almost seems the pace is slower than getting the modification in the first place.

My guess is that many of these homeowners are facing collection calls and foreclosure notices waiting to get a trial modification on their mortgage.

I don’t think that bankruptcy would be right for all of these homeowners fighting to keep their homes, but it could be a solution that is much quicker and easier than this drawn out process that has no guarantee of success.

Filing bankruptcy will stop foreclosure on your home. It will clear some of your debts and might help to free up some income that could then be used to make the payments on your home.

Bankruptcy may sound like a drastic step, and it may be. But it helps to stop creditors from harassing you for payments you can’t make. It can give you the help you need to start your life fresh, free of the obligations that have you trapped in a downward spiral.

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Filed under: Economic News — Tags: , , , , , , , — Rob @ 10:56 am

Who is filing bankruptcy?

Interesting question, isn’t it? In my experience, there is a broad spectrum of people filing bankruptcy in Atlanta. But the people at FancyStats.com have created a graphic with demographic data showing that the average person who filed bankruptcy in 2008 was a married Caucasian, between 35-44 years old, with a high school diploma, who made less than $30,000 a year.

I think you can find more diversity in the numbers than that, so I included their graphic so you can make a decision for yourself.

Filing bankruptcy demographics 2008

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Filed under: Bankruptcy Information — Tags: , , , , — Rob @ 10:29 am

Retail Foreclosures Could Impede Recovery In Atlanta

Economists are predicting that the unemployment rate will drop dramatically in Atlanta in by the second quarter of 2010. I would like to think they know what they are talking about, but I recently read that foreclosures on retail properties and commercial developments are on the rise.

Defaults on these loans will affect the ability of other businesses in the area to secure financing in order to keep growing, which may result in slower recovery than expected. I think that the recovery should be on the way, but if you are scraping by now thinking that you can wait until the recovery in summer next year, you need to prepare for the possibility that you will have to declare bankruptcy.

Come in for a free evaluation of your current situation and see if bankruptcy can help you get your debt under control. It may seem like a drastic step, but you must remember that bankrupcty is not a personal failure. Bankruptcy allows you to clear the burden that the is causing you stress and help you start fresh with the assets you need to begin a life without debt.

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Filed under: Economic News — Tags: , , , , — Rob @ 12:32 pm

Incomes Flat, Unemployment Unchanged, Did Someone Say This Recession Was Over?

Treasury Secretary Tim Geitner and Federal Reserve Chairman Ben Bernanke have been saying that the numbers show that the recession is over and that the economy is on the upswing. Little comfort in Georgia, where according to a report in today’s Atlanta Journal-Constitution, unemployment seems to be pegged at 10.1 percent and incomes remained flat.

People are still struggling to pay their bills and keep their heads above water here in Atlanta. (Now that we have had some rain we can talk about being underwater again.)

Most experts will tell you that recovery in the numbers that show the economy is improving precede the recovery in incomes for most families by 6-9 months. That means that Georgia families will continue to struggle to pay their credit card bills and keep up on mortgage payments.

Clearing unsecured debt and getting a fresh start can take part of the burden off you and your family. Schedule a free consultation to see how filing bankruptcy can help.

Filed under: Economic News — Tags: , — Rob @ 2:21 pm

King Siblings Reach Settlement

In an interesting case that reflects how families can let perceived slights and disagreements build into public brawls.

The three surviving children of the late Martin Luther King Jr. and the late Correta Scott King have agreed to allow the court to appoint a third-party custodian to manage King Inc, the corporation that controls the use of their father’s papers, intellectual property and materials.

Dexter King, who serves as president of the company, told reporters that he would maintain that position but would allow the custodian to manage the “family business”.

His siblings, Bernice King and Martin Luther King III filed suit last year alleging that they had been shut out of decisions made about the company. They accused Dexter of mishandling the affairs of the company and their late mother’s estate after her death in 2006.

The settlement comes just as the case could have gone to a jury trial that could have been lengthy and possibly embarrassing for the family.

A full story on the settlement can be read in the Atlanta Journal Constitution.

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Filed under: Economic News — Tags: , , , , — Rob @ 12:21 pm

Qualifying For Mortgage Modification Is Not Easy

I read an article on Forbes.com yesterday written by Stephane Fitch that provides some good information for those who are seeking to lower their house payment in order to stay in their home.

Now some may say that the Making Home Affordable program is a waste of taxpayer money, but the since it is out there, people in need should take advantage.

The first thing you have to know if you want to participate is what percentage of your gross monthly income goes toward paying your house payment. The number includes payments on the principal, interest, taxes and insurance on your home. If it isn’t greater than 31 percent, you are out of luck and need to find another way to ease your financial burden. Maybe filing bankruptcy will help?

If you made it through the first test, then you have to find out if Fannie Mae or Freddie Mac, the government-backed mortgage holders, own your mortgage. You can do this by visiting the Web sites of each lender and enter information about your home.

Once that is determined, get ready for the negotiations with the bank that is servicing your mortgage. While Fannie Mae or Freddie Mac own your mortgage, they count on the banks that service the mortgages to handle the paperwork involved in the process and decide which homeowners qualify.

Each case will be treated differently. If your house payment is more than 31 percent of your monthly income, the bank will use other costs that you have to determine if you can still make the payment if the interest rate is lowered.

You have to already be behind on payments to be considered by most banks. They will take into consideration how much savings you have, income prospects over the next nine months to one year, and other monthly expenses that you incur.

It isn’t likely that they are going to approve a modification if you are spending a large percentage of your income on health club memberships and private school tuition. It will be a subjective and sometimes humiliating look at your financial situation.

Of course, a report in the Wall Street Journal today says that some lenders are starting to write off principal when modifying troubled mortgages. It says that 10 percent of the modifications approved in the second quarter of this year involved principal reduction.

What you have to remember is that there are lots of options out there. It is also important to remember that these are business transactions. You have every right to use all the tools and programs available to you to save your home. And remember, you can still file bankruptcy to prevent foreclosure on your home.

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Filed under: Economic News — Tags: , , , , , , , — Rob @ 7:49 am

Flooding Likely To Add To Economic Problems

The flooding that we have experienced in the Atlanta area over the last few days will likely have effects for months to come.

Cleaning up after a flood is a long, strenuous process that is likely to take a financial toll on the entire metro area. Lost time at work, missing financial documents, and trying to get by with no insurance in the current economic climate may end up costing Atlanta residents more than they can afford.

If your financial situation was close to the edge, the rising flood waters may have swept you under already. If you need help recovering your financial stability, you should consider filing bankruptcy.

The Georgia Insurance Commissioner has offers some tips on recovering from the flood that are on the Atlanta Journal Constitution’s Web site.

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Filed under: Economic News — Tags: , , , , — Rob @ 10:23 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


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