What Happens to Bankruptcy Rates As Unemployment Drops?

Some interesting news came out today. Unemployment claims fell to the lowest levels since April. This is the lowest level for first time claims filed since the week of April 2, which had 385,000 initial claims. That said, new claims have regularly remained above 400,000 a week for the last six months. Below are some highlights from the data released today:

  • 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.

Filed under: Economic News — Tags: , , , — admin @ 3:38 pm

Chapter 7 for $100,000 Credit Card Debt or Chapter 13 Bankruptcy?

It is not uncommon for the average Georgia resident to have over $5,000 in credit card debt. For some Georgia residents, this may be the credit card debt for one card, even the smallest credit card balance. For a variety of reasons including personal, medical expenses and business expenses, it is not uncommon to see a Georgia bankruptcy lawyer to see a prospect with $20,000, $30,000, even $50,000 in credit card debt or more.

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.

Filed under: Bankruptcy Information — Tags: , , , — admin @ 7:46 am

Is $50,000 Credit Card Debt Enough for Bankruptcy?

Overcoming credit card debt can be a difficult task. Depending on your income and other debts, you may find that bankruptcy is a good option. How much is enough? At what point is it worth filing for Chapter 7 or Chapter 13?

Question: Is $50,000 Credit Card Debt Enough for Bankruptcy?

Answer: Perhaps. It depends on your ability to pay back the credit card(s). If you are able to repay back the $50,000 credit card debt over the course of a few years, then a personal bankruptcy might be avoidable. It will be tough work, but paying back your credit card without bankruptcy has other benefits to your overall financial health. In the event you cannot pay back the $50,000 in full, then there are other options available that you may want to discuss with your Georgia bankruptcy lawyer.

  • Chapter 7 bankruptcy: A Georgia Chapter 7 is also known as a straight bankruptcy. If you are able to shed your debts and start anew, then this is an option worth looking at. People that consider a Chapter 7 often do not have a large number of assets that they are looking to protect, such as a house.
  • Chapter 13 bankruptcy: A Georgia Chapter 13 is a repayment plan between you and your creditors. In this solution you work together to work out a payment plan that will be completed over the course of 3-5 years. If you own a home and are trying to avoid a foreclosure, this is a good option to consider. Same applies if you have other assets of value that you want to protect.
Filed under: Bankruptcy Information — Tags: , , — admin @ 5:12 pm

Gwinnett County Chapter 13 Bankruptcy Tips

Gwinnett County is perhaps the second hardest hit county in Georgia for foreclosures. In July alone there where 468 Lawrenceville Foreclosures in Gwinnett County alone. Gwinnett had just over 1,310 foreclosure actions for the month, which made it the second highest county in terms of activity in Georgia. Only Fulton had more foreclosure actions.

What is significant about this is the percentage that Lawrenceville is making up of foreclosure actions in the county. With over a third of all actions, Lawrenceville residents can surely benefit from additional knowledge about foreclosure and how bankruptcy law affects it. In particular Chapter 13 and how it the Georgia bankruptcy code affects it is something that any resident facing a potential bankruptcy needs to know about.

A Chapter 13 is a repayment plan that is established to settle your debts (at a reduced price) with your creditors. It is filed in court and is approved by a judge. A bankruptcy lawyer often helps with the plan. Contacting a lawyer is not required to complete a Chapter 13. If you have income (ie, capable of repaying) and you have assets worth protecting (home, car, etc), then Georgia Chapter 13 bankruptcy options are something that you need to consider learning about, especially if you are behind with your creditors, capable of repaying. It is expected that foreclosure actions in Gwinnett County will remain high, which makes understanding these Chapter 13 bankruptcy tips so important.

Berry & Associates has 10 Atlanta bankruptcy law offices throughout the metro, including a Gwinnett County office in Duluth, GA.

Gwinnett County Berry & Associates Duluth Bankruptcy Law Office
3235 Satellite Blvd.
Building 400, Suite 300
Duluth, GA 30096
Tel: (404) 425-5181

Filed under: Bankruptcy Information — Tags: , , , — admin @ 8:17 am

What Breast Cancer Bankruptcy Options Exist for Medical Debt?

This is a guest blog post from Nicole, the daughter of a breast cancer survivor. Nicole is a direct witness to the affects that breast cancer can have physically, mentally and for the fortunate that survive, financially onto them and their family.

When the doctor comes in and informs you that you have breast cancer, it’s a whirlwind of emotions. Sometimes going from having cancer to being cancer free can be shorter than the time you financially recover from the diagnosis.

Not only do you have the obvious expenses of doctor and specialist visits co-pay, cost of the chemotherapy and radiation sessions, and the cost to and from the hospital, but you also have other cost that still encompasses your care, but might not be covered. If you have insurance, and depending on your insurance coverage, you could be writing a check to the hospital for your co-payment for treatment 3 to 5 times a week, depending on your cancer treatment. If you’re on a fixed income, this additional cost can be a huge impact on to your family budget. Also, maybe you’re already living paycheck to paycheck and you’ need to place your treatment cost, travel expenses, and other aspects of your care on a credit card or a few.

To obtain some of the best treatment in the area or to see your doctor who might travel from hospital to hospital, the cost of travel can become quite significant. Also, you might need to have a family member or neighbor take you for treatment because you might be too sick to drive, and need to compensate them for their time and expense. Some additional expenses of breast cancer might include the cost of wigs, hats, time off from work during your treatment time and also to regain your strength back, oral medication, and possibly even breast prosthesis post cancer.

Breast Cancer & Bankruptcy

All these cost add up… fast. You’re healthy and cancer free, but you’re now living under a mound of debt and might be unemployed. Now what? For many women personal bankruptcy is an option to consider because the mountain of debt from the treatment creates. Personal bankruptcy options such as a Georgia Chapter 7 or Georgia Chapter 13 bankruptcy filing might be an option for you to explore with an experienced bankruptcy lawyer.

About the Author: Nicole witnessed her mother undergo breast cancer treatment in 2003-2004. In learning more about cancer survivors she has witnessed other women go through the emotional changes and financial struggles of being a survivor.

Filed under: Bankruptcy Information — Tags: , , , , — admin @ 8:36 am

Average 2011 College Graduate Debt is $22,900

The graduating class of 2011 will set a record for having the highest amount of debt upon graduation. That is not the way that many students want to start off their career, but one that many believe is necessary to give them the opportunities in life that they want from their careers. The Wall Street Journal reported about the class of 2011 in May:

Together with loans parents take on to finance their children’s college educations — loans that the students often pay themselves – the estimate comes to about $22,900. That’s 8% more than last year and, in inflation-adjusted terms, 47% more than a decade ago.

Is the level of debt still worth it? Probably, but the amount of time it will take to get free from this debt is going to take years. In Georgia, which experiences a high quality of living, average starting salaries can be lower for recent graduates than in other parts of the country. Starting with $20k of debt can be difficult for a person that is making just over $30k per year in a city such as Atlanta.

While the unemployment rate is much lower for college graduates, so too is the typically the level of debt that they owe. For those that are a college graduate, but are unemployed the risk of bankruptcy can be too real (see college graduates bankruptcy). Mounting credit card debts and the pressure to keep up with car payments and student loans can eat away almost all of a 20-something’s income. Maintaining payments of these debts is obviously more challenging when that person is not employed.

Bankruptcy is an option to free yourself from debt, but it is not an option for everyone. If you have questions about a Georgia Chapter 7 or Georgia Chapter 13 personal bankrputcy, the Atlanta bankrputcy attorneys of Berry & Associates can help.

Filed under: Bankruptcy Information — Tags: , , , — admin @ 7:40 am

Personal Bankruptcy Filings Fall 18 Percent in July

Over 24,000 fewer people filed for personal bankruptcy in July 2011 versus July 2010 according to the American Bankruptcy Institute. ABI recently told its story to Reuters.com. Citing National Bankruptcy Research Center, the story is good news, especially considering that ABI is estimating 1.4 million bankruptcy filings will occur in 2011. This is down from an all time high of 1.53 million filings in 2010.

The news isn’t all good. It is expected that bankruptcy levels won’t fully peak off until consumer confidence levels are increased. Consumer spending plays such a critical role into bankruptcy filings. Recent news suggests that consumer spending may not be increasing soon and in fact a double dip recession could be already here.

  • U.S. consumer spending fell 0.2% in June. This is the first decline since September 2009.
  • There is typically a 12-18 month lag in consumer spending declines and increased bankruptcy filings

So what does this mean for the country? What does this mean for Georgia consumers?

Nationally the increase consumer spending is a potential leading indicator of why personal bankruptcy filings are expected to be at 1.4 million this year from a high of 1.53 million last year. This also means that personal bankruptcy filings could increase in 2012 if consumer spending trends continue.

If you facing high debt levels, bankruptcy is a legal option that you can explore. There are two types of personal bankruptcy filings, Chapter 7 and Chapter 13. They each offer different solutions to a debt problem.

  • Chapter 7 bankruptcy, is also known as a straight bankruptcy. This is a good potential option if you have minimal assets and want to make a clean break.
  • For those with high debts and assets that they are looking to protect, a Chapter 13 bankruptcy is a potential option. In a Chapter 13 you look to negotiate a repayment plan with your creditors.

Need an Atlanta Bankruptcy Lawyer? Contact Us:

Have a question about debt options? Contact Berry & Associates. With 10 metro Atlanta bankruptcy law offices, we have local lawyers than can help answer your questions on a potential filing.

Filed under: Bankruptcy News — Tags: , , , — admin @ 7:05 am

Finding a Cobb County Bankruptcy Lawyer in Kennesaw

If you are filing for bankruptcy and live in Cobb County, then you’ll want to know about the Berry & Associates office. Located at 125 Townpark Dr. in Kennesaw, our experienced lawyers can help you navigate through the bankruptcy system, including filing for protection and removing yourself from your financial debt.

Cobb County Chapter 7 and Chapter 13:

Various bankruptcy options are available, depending upon if you are able to negotiate and create a repayment plan based on your income. For those that need a clear separation and do not have substantial assets to protect such as a home, a straight bankruptcy may be a better option. Cobb County residents considering a Chapter 7 or Chapter 13 filing should consider contacting the bankruptcy lawyers at Berry & Associates in the Kennesaw office. Our law firm has helped over 20,000 residents in Georgia go through the bankruptcy system.

Reasons Why Cobb County Residents File for Bankruptcy:

There are a wide variety of reasons why people file for bankruptcy. The common thread that they all have is that they are looking to rebuild their finances by separating from overwhelming debt. For those that are receiving harassing calls from creditors, bankruptcy is a method to end the calls. Those that cannot overcome their debts typically are unable to pay because of unemployment, or underemployment. For those that are underemployed, they are not able to make enough money to catch up to their debts. A final common reason why people file for bankruptcy is because of high medical expenses. Medical debts and bankruptcy tend to be more commonly linked than you would think. For those that have benefited from the physical success of an expensive medical treatment, their physical wellness is often replaced by mental stress of how they will ever repay these debts.

Contact Berry & Associates Cobb County Bankruptcy Lawyers:

Cobb County Kennesaw Bankruptcy Lawyer
Berry & Associates
125 Townpark Dr.
Suite 500
Kennesaw, GA 30144
Tel: (404) 425-5184

Filed under: Bankruptcy Information — Tags: , , , — admin @ 7:05 am

The First Steps After Georgia Bankruptcy

You successfully filed a Chapter 7 bankruptcy and you’re ready to save, save, save, avoiding the mistakes which led up to the bankruptcy. Some are ready to spend, spend, spend, learning nothing from bankruptcy. It’s better to be the saver, of course, and good to learn from the experience.

We often get asked, “What do I do after a successful bankruptcy?” Thousands in Georgia are discharged of millions in debt every single year. If you’re one of them, it’s time to start taking steps to avoid filing ever again. This blog guide can help.

Pay Bills Early, Always Pay On-Time
Paying bills early may seem obvious. But many go right back into the old mode of paying bills by credit card the day it’s due, if not forgetting about the bills entirely until problems result. This is quite common, nothing to be ashamed of, but certainly something you want to avoid. Bankruptcy experts always say you should pay bills early after filing. Pay them early as much as possible. If you are running behind one month, it’s okay to pay on-time. However, don’t get in the habit of just paying on-time; pay early to save yourself the headache and start rebuilding your credit.

Going to The Wrong Money Lenders
There are some horror stories of people getting into debt after losing a job. They had been getting advances from loan companies just to pay the bills on time. Then they got fired, couldn’t pay the advance financially company, and got stuck in a debt with a horrible interest rate. Avoid money lending companies for check cashing and advances. They are the worst way to get money.

Avoid Co-Signers
You may think you can easily get a loan or new account by having a co-signer. A mother helping her son, a father for his daughter, a sister for her brother. However, it’s best to protect your friends and family. You do not want to have them owing thousands because you can’t make a payment. It may sound odd, but you want to be the only one affected. Therefore, co-signers after a bankruptcy is a bad idea.

Getting Credit and Loans
After filing bankruptcy, it may be difficult to find a good lender. You will be told no on many applications and in meetings. However, these men and women are just doing their jobs. You can always get new credit lines and loans. How? Simple, ask the lender who might take you on. Don’t just take the refusal and go to the next company on the list. One financial expert points out you should ask open ended questions. You ask the lender, “what would you do?” Or, “who might finance me?” They often enough have some ideas. There are always options.

Rebuilding Your Credit
A checking and saving account are the first steps in rebuilding your credit. You should also consider getting a secured credit card. You pay upfront on these, and the more you pay the more your limit is. You might pay $1,000 and get a balance of $1,000, though you pay that balance outside the initial payment. You do not lose this money; you can get it back easily. You should also consider opening up some store credit cards, though remember to only buy needs, not wants.

There are many other ways to rebuild your credit, get loans, and protect your finances after a bankruptcy. Keep reading Georgia Debt Law for tips before, during, and after bankruptcy.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , — jmalewitz @ 2:36 pm

When Should You Consider Filing Georgia Personal Bankruptcy?

A common question during tough economic times is, when should you file bankruptcy? The question is especially valid in Georgia, with plummeting home values, foreclosures, job losses, and credit card debt. These are in fact some of the biggest reasons you might file personal bankruptcy in Georgia, if not any state in the country. This guide begins the process for you to help make the choice. It’s an important one, so read on.

Bills You Can Pay
If you are paying only the minimum on most if not all your bills, personal bankruptcy is a good option. Many can only afford to pay the interest on credit cards or other bills, falling deeper and deeper into financial troubles. If you simply know it won’t get better, consulting with a Georgia bankruptcy lawyer can help make the decision for you.

Budgets Won’t Work
If it won’t get any better, if it’s impossible to create a budget to get out of debt in a matter of years, Georgia bankruptcy can give you a fresh start. It’s not giving up financially; it’s a move you are allowed to make as citizen and what you’ve been paying taxes for. If no foreseeable budget can get you out of this problem, bankruptcy is much better than losing all your assets and properties.

Home Foreclosure, Apartment Rent
If foreclosure papers have been filed, are about to be filed, or if you cannot pay the rent on your place, bankruptcy may be your best option (note it’s not your last option). Sometimes you can actually save your home by working with a Georgia bankruptcy lawyer, especially if you file before the home goes into foreclosure. If, when looking ahead, you feel the apartment or home you’re renting will be too much with your debt, you may file just to protect yourself from being quite literally homeless.

Lost Job
Losing a job is not the end of the line. In fact, just in 2010 more jobs have been created than in some time. However, in the short term you may have a serious financial struggle. You may be fine on bills, then your laid off and getting unemployment benefits, which can be quite low in comparison to your paycheck. If you lose a job, Chapter 7 personal bankruptcy can discharge your debts and give you a fresh start. You can also file Chapter 13 personal bankruptcy in order to protect your assets.

Other Financial Problems
Losing a job is not the only financial problem Georgia residents face. The biggest reason for filing bankruptcy is not job loss, foreclosure, or credit card debt; it’s medical bills. Sometimes you may suffer through an illness and have no coverage or minimal coverage; paying tens of thousands to the hospital may be out of the question. This is another example where personal bankruptcy, specifically Chapter 7, can discharge this debt for you.

If you’re still unsure if bankruptcy is your best option, consulting with a legal expert can help.

Filed under: Bankruptcy Information — Tags: , , , , , , , — jmalewitz @ 1:26 pm


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