If you asked this question a few years you would have likely been laughed it. The chances that a city could file for Chapter 11 bankruptcy were quite rare. It seems like it is becoming a bigger trend though. In 2011 it appears that every few weeks a community actually files for Chapter 11. Many communities will talk about it, and it is likely to start a debt about property taxes and budgets, but the difference in 2011 is that many have filed for bankruptcy. One of the most recent examples comes from the Rhode Island community of Central Falls filed for bankruptcy.

Atlanta has high educate costs, and an employee pool that has both high benefit expenses and pension costs. Atlanta has made many efforts to avoid the fate of communities such as Central Falls, RI. It has made difficult cuts, which has angered many. It has raised property taxes, which has also angered many. The efforts of Atlanta might be enough to avoid it from a Chapter 11 bankruptcy. If the city ever was to declare it would likely be the largest city in the U.S. to default.

• January – June 2011 Foreclosure notices were 8.3 percent lower than January – June 2010 (56, 429 in 2011 compared to 61,524 in 2011).
• While declines in foreclosure continues, new notices are still high

What does this news mean for the metro Atlanta residents? Signals are better than before. For example, more people are paying on time, which is good sign. Other signals are showing that financial institutions might be slowing the pace that they are foreclosing on as they determine how to handle the uptick in foreclosures from the last few years.

What does this mean for you?

Trying to stop foreclosure in Atlanta? If you’re facing foreclosure there are several options available both within the community and potentially through your lender. A final option that residents sometimes take is the option of filing for bankruptcy. A bankruptcy filing may help you avoid foreclosure on your Atlanta home, but this comes with several caveats.

• Bankruptcy cannot be a Chapter 7
• Bankruptcy must be a Chapter 13

7,374 Foreclosures: In June 2011 there were 7,374 foreclosure notices in the Atlanta region. This was the lowest in 2.5 years, and marked a 4th straight month of declines. That said, this is still a very high number.

Have a question about bankruptcy? Trying to rebuild your financial life? With 11 offices available in the metro area, there is a sure to be a local Berry & Associates office that can help with your metro Atlanta Chapter 13 bankruptcy questions and filing.

Fore homeowners considering a foreclosure, protecting their home is one of their top priorities. This can be done through Chapter 13 Georgia bankruptcy protection. According to Chapter 13 law you are restructuring your debt and working out a plan with your creditors. Your attorney will guide you through the system and the court will oversee the process.

The last few years have seen many instances of people in Atlanta going through a foreclosure. Fulton, DeKalb, Gwinnett, Cobb and Clayton counties, among others, have seen many of its residents fall on hard times and seek protection under bankruptcy laws in Georgia.

When you consider filing for a Georgia Chapter 13 bankruptcy, make sure you are going through a qualification checklist well. Before you proceed with filing for bankruptcy you want to make sure that is the best financial option available. You want to make sure that filing for bankruptcy will provide you with the level of protection that you are seeking. Your attorney will be able to help you with this.

If after reviewing your options it turns out that a Chapter 13 bankruptcy will accomplish what you are looking to achieve, then you will create a budget and submit it to the courts for approval. By doing this you are effectively restructuring your debts. Your attorney at Berry & Associates will help you with each step of the process, including filing the proper paperwork. Upon completing payment of the plan you will receive a full plan discharge.

Some exceptions can apply, but as you can see, it is very possible to file for bankruptcy protection in metro Atlanta avoid a foreclosure on your home.

This office is easy to find. Just off of I-85, we are minutes for I-75 and GA-400. Open 6 days a week, including Saturdays from 9-1, this office is the number one choice for many seeking the help of an Atlanta bankruptcy attorney.

2751 Buford Highway
Suite 400
Atlanta, GA 30324
Tel: (404) 235-3328

What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a liquidation proceeding where debts are eliminated. You are eliminating debt, not paying on it, and can eliminate most any debt. If you owe medical, credit card, or other unsecured debts, Chapter 7 bankruptcy is a good option. You may owe too much money on your home, a secured debt, and recently lost your job. If you have no means of paying it, you have means beyond bankruptcy, but you can file to eliminate the debt. Chapter 13 bankruptcy, on the other hand, is a debt repayment plan, which, as it sounds, involves you paying on debts over a long period. So you stand to save more money with a Chapter 7 bankruptcy, but you may get more time and save more assets with a  Chapter 13 filing.

What Should You Do Before You File?
Before you file, you should first hire an experienced Atlanta bankruptcy lawyer. You should then make sure you have the most possible debt. That may sound odd, but you want to file at a time where it will have the most affect on your debts, so you may wait a few weeks for that next medical or credit card bill to come in. You should not run up your credit cards knowing they will be discharged, as this is illegal. Also before you file you might consider Chapter 13 bankruptcy. If you have some income, a Chapter 13 filing can help you protect your home from foreclosure, along with keeping other assets.

How Do You File?
For Atlanta Chapter 7 bankruptcy, you start by filing a petition with the Georgia Bankruptcy Court. You then show proof of eligibility, what debts you owe, what assets you have, what income you have, what expenses you have, your previous tax return, and some other documents.

Who Can Help?
Hire an experienced Atlanta bankruptcy lawyer if you’re going to file for Chapter 7 bankruptcy. It’s a smart choice. There are so many mistakes you can make without the guidance of an experienced lawyer. You may not list all your assets. You may not list all your debts. You may hide things without knowing it. You may delay your filing because of these mistakes. Yes, an Atlanta lawyer will cost some money, but it’s money well spent. To find a good lawyer, you can look online, such as at the Georgia State Bar, found at Gabar.org.

First, Chapter 7 bankruptcy is a liquidation, where you discharge debts at some cost – you might lose some assets. Few lose much in the way of assets, and most debts can be discharged, such as medical, credit card, and mortgage debts. You may have some debts you want to continue paying on if you can afford to, such as on your mortgage, or you stand to lose assets. Chapter 7 bankruptcy is an option, but not your only option. You might consider Chapter 13 bankruptcy, where you repay debt over time and buy yourself some leeway with creditors and on your mortgage.

Second, Chapter 7 bankruptcy should only be used in certain situations. You might have a $50,000 medical debt from when you had no insurance and had to go to the hospital. You might owe $75,000 to credit card companies from a time when you had spending problems. You may be out of work and out of money, and the bills keep coming. On the other hand, if you have a smaller debt, understand that Chapter 7 bankruptcy is a big decision. You will hurt your credit, you may lose some possessions.

Chapter 7 bankruptcy is a fast process. You can be discharged of your debt in a matter of months. That huge medical bill can be gone and you can start rebuilding your credit. Chapter 13 bankruptcy takes much longer to put into effect. And you have to pay on the monies owed. If you file Chapter 13, you typically pay on the debts for 3-5 years.

If you are going to file Chapter 7 bankruptcy, file for effect. Take advantage of all that the filing will do. If you have a large medical bill coming in the mail, you should wait until you get it so you can discharge it with your filing. If you have a credit card bill coming in, perhaps a past due one, wait until you get it to file. In other words, wait until you can discharge the most debt. This is not to say you should spend money and then file, which is illegal. But you should take full advantage of the filing to save money.

Once you have completed Chapter 7 bankruptcy, it’s time to rebuild your credit. Yes, a bankruptcy will hurt your credit, and will show up on your credit report for 10 years. Therefore, you should only use it when you have to. However, it does not ruin your credit either; once you set up some accounts and start paying on your credit cards, you can slowly improve your credit score. Once you get  a better credit score, you can get a larger loan. It’s a very simple process, provided you pay your bills on time.

If you truly want to take advantage of Chapter 7 bankruptcy, it’s time to consider hiring an experienced Georgia bankruptcy lawyer. He or she can help you decide if Chapter 7 is right for you, how to file, and how you can take full advantage of it.

When To File Chapter 13
Chapter 13 bankruptcy can be much better when you have an income and your home is in danger of foreclosure. Technically you can protect your home by filing Chapter 13. If you have enough of an income to continue paying on debts, you can protect all your assets here. You set up a debt repayment plan to pay back your monies owed over 3-5 years, stopping all collections, including any foreclosure, against you. If you file on time, you can save your home. If you have a job, this is a good option. If you have the income to continue paying off debts, and have a home, it can save you financially.

How Chapter 13 Bankruptcy Works
Chapter 13 bankruptcy is debt repayment plan, where you buy time to pay on certain debts and protect your property. It is not a magic pill; there are rules. You must have an income. You must pay on what you want to keep. And you must continue paying for several years. It costs you more money than Chapter 7, but you stand to save more assets.

How Georgia Foreclosure Works
If you file Chapter 13 bankruptcy prior to the foreclosure process beginning, you can save your home. If you wait too long, they may still be able to take your home. The secret is to file before the foreclosure papers are filed. So when you know you are not going to be able to pay, it’s time to consider filing bankruptcy.

Who Can Help?
If you’re unsure how to protect your Atlanta home from foreclosure, that’s okay. You simply need to consult with an experienced bankruptcy lawyer. It’s his or her job to help you understand how this process works, how you can protect your home, how you can protect other assets, what rules you have to follow, and how you can move on.

Chapter 7 to Cancel Credit Card Debt
While credit card debt is not the #1 cause of bankruptcy, it is a big one. Some of us are forced to use credit cards after losing our jobs. Others have poor spending habits. Some are trying to avoid losing everything. Credit card debt can be discharged in a matter of months with Chapter 7 bankruptcy. If you owe more than you can pay off in 3-5 years time, you may consider it. If you owe more than you make in an entire year, and you should be able to protect your property, you may should also consider it.

Chapter 7 to Discharge Medical Debt
Medical debt is the leading cause of bankruptcy nationwide. As noted, Georgia has some of the highest unemployment in the country, at over 10% by last count. Atlanta itself, as we all know, has thousands out of work and thousands more without medical coverage. If you have no medical coverage, get hurt, and have to go to the hospital, in a matter of days you can get a bill worth more than you make in a year. You might get a $50,000 bill for a bad infection, or a $100,000 bill for an injury to your child. Whatever the case, this is a time to consider Chapter 7 bankruptcy. It can discharge the debt in a matter of months.

Why not Chapter 13?
Chapter 7 bankruptcy is a liquidation: you discharge debt at some cost, because some of your assets can be taken to pay off the debt. Chapter 13 bankruptcy is debt repayment plan: you are paying off your debts, not eliminating them, and likely protecting your property. The problem here is if you have an impossible debt it’s pointless to file Chapter 13 bankruptcy. If you have no income, there is no point. On the other hand, if you own a home and have a job, but have fallen behind in bills, you may consider it.

When Not to File
If you are facing foreclosure, Chapter 7 bankruptcy may not be your best option. Atlanta foreclosure rates are quite high. In comparison to other states, Georgia has some of the highest foreclosure rates in the country. If you have an income, you may want to protect your home. Or if you owe a small amount, something you can pay off in a year or less, Chapter 7 may not be your best option.

Get Legal Help
No matter what, file Chapter 7 bankruptcy with the help of an Atlanta lawyer. There are thousands of capable Georgia bankruptcy lawyers. You can find them at the GaBar.org, the State Bar of Georgia, and on sites and blogs like this one.

How much will it cost?
If you want to save money, filing bankruptcy may seem like a no-brainer. Well, it’s not always your best option. You may be able to pay off debts on your own. You may be able to negotiate with creditors without a bankruptcy. And if you’re not eligible, you may have to find other solutions.

On the other hand, Chapter 7 bankruptcy can discharge tens of thousands in debt. It costs only $299 to file. Chapter 13 bankruptcy can save you the money invested in your home, while also buying you time to pay on other debts. You pay online $274 to file Chapter 13. That is a low price to pay for a second chance financially. You should also consider hiring a lawyer. A good lawyer will cost from $1,000 to $2,000.

Will you lose your home in bankruptcy?
Not necessarily; you can save your home with bankruptcy. Georgia bankruptcy allows for you to protect your home; the key is to have the right strategy. You might file Chapter 13 bankruptcy to stop a foreclosure before it begins. You might file Chapter 7 bankruptcy and pay on your home outside the bankruptcy. If you simply cannot afford your home, you might be able to use a short sale to lose the debt. If you want to discharge the debt instead, you can do so with Chapter 7.

What are your options?
You have Chapter 7 bankruptcy, perhaps the best way to save money, and Chapter 13, likely your best option for avoiding a foreclosure. If you make too much money, you may not be eligible for Chapter 7 (it’s based on the average Georgia income). If you owe too much – though this is rare – you may be ineligible for Chapter 13. You usually have the option of Chapter 7 or Chapter 13.

Why hire a lawyer?
Should you always hire a bankruptcy lawyer in order to file? About 99% of the time you should consider hiring a lawyer. A lawyer saves you money: it’s his or her job to ensure you discharge the most debt, and also avoid wage garnishments. A lawyer protects your possessions: it’s his or her job to help you avoid foreclosure and to keep other assets like your car too. Perhaps the most value a lawyer gives is in giving you a second chance.

Bankruptcy is not always your best option, but it’s often much better than the alternatives. Instead of paying on debts you simply cannot afford, file for help. Instead of using debt consolidation, protect your assets and your income by filing. Instead of selling your home, protect your dream with a Chapter 13 bankruptcy.

When Not to File
If you owe small amounts, why not file and be done with the debt? Bankruptcy is a serious move, and you can only file so often. If you file Chapter 7 to lose the $2,000 credit card debt, you won’t be able to file again Chapter 7 again for 8 years. A lot can happen in 8 years time; you may get a $50,000 debt you can’t pay, but won’t have the ability to file. Also, bankruptcy does affect your credit scores. Though it can be rebuild – and filing is more than worth it if you have huge debts – filing for minor debts may make it difficult to get new loans.

One other mistake filers make is using Chapter 7 bankruptcy to get creditors off their back. If that sounds like you – if the phone is ringing off the hook – consider that you have other options to avoid creditor harassment. You can write a letter to the creditor, “I want no more contact from you regarding this debt, etc,” and be done with the harassment.

Protect Your Rights
You have a right to file bankruptcy – usually. If you make too much money, if you’re over the Georgia median income, you may have to file Chapter 13. However, you almost always have a right to bankruptcy, to protect your assets, to be free of debts, and to get legal counsel. To protect these rights, get the right lawyer.

File Correctly
If you have a lot of assets you want to keep, list them in your bankruptcy. If you want to discharge a debt, list it in the bankruptcy. If you want to pay on certain debts outside the bankruptcy – to the trustee – this is legal and allowed. You might, for example, not want to discharge your mortgage.

File for Effect
Filing bankruptcy is all about timing. For Atlanta residents, unemployment rates are high, many homes are going into foreclosure every month, and many of us lack medical coverage. There are no secret solutions here, but with a bankruptcy, you can do things like protect your income, protect your home, and protect your finances by discharging a huge medical debt. By “filing for effect” you are timing your bankruptcy at a point where you can discharge the most debt and protect your income and assets. For example, you might wait until you get the huge medical bill before you file. You might wait until you credit card bill comes, or the interest rate increases. You may also file before your home goes into foreclosure, giving you many more options.

Be Frugal
If you’re going through a bankruptcy, your income may get tight. Find ways to keep up on bills, cut down on expenses such as eating out and buying lattes, perhaps sell certain assets worth a lot of money. You need not be frugal every day the rest of your life, but as noted, you can only file so often.

Get a Lawyer
You have a right to file bankruptcy, but perhaps the best person to protect these rights is a professional lawyer. For Atlanta residents, you have numerous options for lawyers. But you should hire a lawyer who specializes in Georgia bankruptcy, not a “do-it-all” kind of lawyer. A specialist will be far more effective. He or she will know all the laws involved, and can answer the many questions you likely have.