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.

The shift from June to July is a 16 percent increase in foreclosures for Fulton County. Other major Atlanta area counties were also hit hard, in particular DeKalb and Gwinnett. Cobb County saw only a marginal increase in foreclosures.

Question: Can I Avoid a Fulton County Foreclosure?
Perhaps. Declaring bankruptcy may be an option to avoid a foreclosure. Other actions, along with the bankruptcy filing are often required. If you think you are a candidate for bankruptcy, contact Berry & Associates to schedule an appointment. Our bankruptcy attorneys average 10 years of case experience and can help explain what bankruptcy options may exist.

If you are facing a Fulton County bankruptcy, contact us. Our Atlanta office is our main office and it is open 6-days a week, including Saturday.

Fulton County Berry & Associates Atlanta Bankruptcy Attorney
2751 Buford Highway
Suite 400
Atlanta, GA 30324
Tel: (404) 235-3328

Georgia had 60,870 foreclosures in the first half of 2011. Georgia foreclosures were down 15.4% from the same period of 2010.

Georgia’s year over year decrease of 15.4% is lower than the national average of 29%

Nationally there were 1,170,402 foreclosure filings in the first half of 2011.

“Foreclosure” is being defined by RealtyTrac as a default notice, scheduled auction or bank repossession

Foreclosures Actions Drop 15.4% Year over Year:

Georgia’s foreclosure rate is down, which many would think means that the housing market is getting better. In reality, foreclosures are down because of procedural delays. This is resulting in pushing foreclosures out. It is estimated that approximately one million foreclosure auctions that should have taken place in 2011 will be pushed into 2012, if not later.

If you are facing a foreclosure, the time to act is important. Some options may be available, but it will depend on your situation and your current outstanding debt. If you haven’t already, now is the time to contact an experience bankruptcy attorney. Your Georgia bankruptcy attorney will be familiar with the bankruptcy code and how it can be applied to your financial situation.

Give Berry & Associates a call. Whether you are near Duluth, Newnan, Dalton, or Conyers, there is a local office near you. We have 11 metro bankruptcy law offices that you can schedule a free consultation with.

• 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.

• Home prices reach another new low
• Home prices are down 5.1% in the first quarter 2011 from a year ago
• Standard and Poor’s states this report confirms a double dip in home prices
• Home prices are down 32.7% from its peak 5 years ago

The double dip is being observed across much of the nation, according to David Blitzer, spokesman for Standard and Poor’s. It is a little early to know how metro Atlanta will be impacted. Some counties in the metro area and North Georgia have been hit very hard with home price decreases in the last few years.

High numbers of foreclosures are flooding the market and driving down prices. This has resulted in decreases in new home construction and reductions in home prices on houses being sold that are not in foreclosure.

Foreclosure is a topic on the minds of many facing a potential bankruptcy. Contacting an Atlanta Chapter 13 attorney can help increase your chances of avoid foreclosure. He’ll explain your options, and if you qualify, he can help you file for Chapter 13 in Georgia. If this is a topic on your mind, it is important to talk to an expert and learn what you can do.

Will a double dip occur in Atlanta? Has one already occurred? In 2009 during the homebuyer tax credits a modest gain was observed. That gain has disappeared now that the homebuyer tax credits have expired. Metro Atlanta and North Georgia remain attractive places to move to, especially for those from up north, but moving here can be difficult when northern states are in such tough economic conditions. Selling a home is very difficult right now. For those that need to sell quickly, it is often happening at deep discounts. For others that are in long selling cycles they are too often facing the stress of a potential foreclosure.

Foreclosure can potentially be avoided, but you need to know your options and you need to have the right plan. For the moment, it looks like it is going to get worse before it gets better. Be as prepared as possible.

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.

Know Your Rights
You have a right to file bankruptcy as a U.S. citizen, a right to a fresh start. Sometimes you may not be eligible for bankruptcy, but you always have some options, and almost always have the right to file either Chapter 7 or Chapter 13. Living in Atlanta is unique, but the major benefits are universal. You can discharge credit and medical debt with a Chapter 7 bankruptcy; you can protect your home from foreclosure while paying on other debts with a Chapter 13 bankruptcy.

Educate Yourself
Research may not have been your most enjoyable part of school, but it’s really not that hard these days. You can go directly to U.S. government web sites for rules and regulations on bankruptcy. You can read valuable information on blogs just like this on. You can stop by the library, ask for materials, and find magazine articles and books explaining exactly how to solve your debt problems. Did you know, for example, that the “automatic stay” stops all collections against you for some months, whereupon you can discharge the debt causing it? That’s some of the valuable info you can get on this blog, on government sites, and at the library.

Georgia Bankruptcy Eligibility
If you want to discharge debt with a  bankruptcy, you need to know your eligibility. Here on Georgia Debt Law, we go over eligibility rules weekly. If you make too much money as an individual or family, you may have to file Chapter 13 bankruptcy instead of Chapter 7. If, on the other hand, you owe hundreds of thousands if not millions in unsecured and secured debts, you may be ineligible for Chapter 13 bankruptcy.

Chapter 7 to Discharge Debt
Chapter 7 bankruptcy is effective for Atlanta residents who simply cannot keep up with interest rates and penalties. There is no limit on how much credit card, medical, or mortgage debt you can discharge. As long as you do not make a more than average income, you can be free of that huge credit card debt, that impossible medical debt, or that mortgage you cannot keep paying on.

Chapter 13 to Discharge Debt
Chapter 13 bankruptcy, though used less than Chapter 7, has some major benefits too. You are technically still “discharging” your debts, but by paying on them over time. You might save your Atlanta home too, a major benefit, by stopping a foreclosure before it begins.

Atlanta Bankruptcy Lawyer
In Georgia, unemployment is over 10%, higher than the national average. If you walk down past 250 homes, one will go into foreclosure this month, if not more. These problems can be life changing, but you have rights, and you have options. While you can forgo hiring an Atlanta bankruptcy lawyer, he or she can ensure you discharge the most debt and protect the most property. And a good one should charge a fair fee, from $1,000 to $2,500.

Why use debt consolidation?
There are few circumstances where you should consider consolidation. These companies do little you cannot do yourself. If you filed bankruptcy, you would either be completely free of the debt or be able to pay on a fair time table.

Is bankruptcy always the best option?
Sometimes you can negotiate with creditors yourself rather than filing bankruptcy or using debt consolidation. Say you have a $4,000 credit card debt over year head with interest rates climbing and creditors calling. You do not have enough money to pay off this debt, but you do have a job. Instead of using debt consolidation to combine all your monies owed, you might contact the creditor and explain to them how you won’t be able to pay. Creditors want their money, even if it’s over a long period or for less. If you file Chapter 7 bankruptcy, they may get nothing. You can use that. If you have a minor debt, a Chapter 7 bankruptcy may be unnecessary.

When is Chapter 7 bankruptcy best?
For Georgia residents, where unemployment and foreclosure rates are climbing, Chapter 7 bankruptcy has numerous advantages. If you owe a lot of unsecured debts – monies owed on credit cards and to hospitals, most commonly – Chapter 7 is almost always your solution. As long as you don’t make too much money, you can discharge any amount of debt. You owe $50,000 in credit, $40,00 in medical, and cannot keep your $150,000 mortgage going; Chapter 7 bankruptcy is a good option here. It’s not easy, which makes hiring an experienced lawyer a crucial part of the process.

Why not debt consolidation?
You get one bill every month and you lower interest rates; that is how it’s supposed to work. Debt consolidation gives you little legal protection, but bankruptcy does. If you have secured debt – monies on your home and car for example – debt consolidation can do little, as it’s designed for unsecured debts. But you pay less, right? Wrong, you typically pay more on the debts over time because of interest.

Who can help?
Debt consolidation is an option, but for Georgia home owners, it does nothing. If you’re unemployed and owe tens of thousands, you may have no way of paying the monthly fees. If you’re still unsure, contact an experienced Georgia bankruptcy attorney. In most situations, a Chapter 7 or Chapter 13 bankruptcy can save the most money and protect most of your property.