Is Georgia Experiencing a Double Dip Recession

Douglas A. McIntyre recently published a 24/7 Wall St. article on MSNBC that illustrated 10 signs that the economy was already in a double dip recession. The thought that the economy may be getting worse will be scary to many, but not news to others. In many ways the economy has never fully rebounded to pre-2007 levels. For example, unemployment is at 9.2 percent, housing prices remain around 2002 levels and consumer confidence at an all-time low.

Many of the below signs you might already be observing. For example that cup of coffee is costing more due to inflation, including increased oil prices, which is pushing the average consumer’s budget further and preventing them from having the purchasing power they once had. For those looking to pay off debt, investments are not yielding as much as in the past. Of course the 900 lb gorilla in the room is the fact that housing declines has resulted in millions of homes have negative equity.

10 Signs the Double-Dip Recession has Begun

  1. Inflation
  2. Investments have begun to yield less
  3. The auto industry
  4. Oil prices
  5. The federal budget
  6. China economy slows
  7. Unemployment 
  8. Debt ceiling
  9. Access to credit
  10. Housing

What about Georgia? In some ways Georgia is positioned to do better in the recession than a rust-belt state like Michigan. Labor laws and a lower cost of living have allowed Georgia to flurish during boom times, such as the period before the 1996 Olympics into the early 2000s. When certain industries slow down, such as new home construction, Georgia is hit hard because it has been known as a state with positive population growth. This positive population growth requires more resources, such as new homes and services from local businesses. When consumer buying power slows, or if the rate in which people are moving to Georgia slows, so too can the rate of growth of certain industries.

It will be interesting to see how Georgia is affected in the coming months. The data is mixed. This bankruptcy blog has been following the Georgia economic outlook for a long time. It both shows that some industries are rebounding and the worst appears behind us. Other reports are showing that a double dip is a real thing. For the thousands of Georgia residents looking for solutions, the recession can’t be over soon enough.

If you are looking at debt law options, consider contacting Berry & Associates. Our Georgia bankruptcy lawyers can help evaluate you situation and help advise you on potential options.

Read the MSNBC Article: 10 Signs the Double Dip Recession has Begun

Filed under: Economic News — Tags: , , — admin @ 7:12 am

FTC Announces Georgia Customer Refunds for Overcharges

For 19,529 Georgia customers of Countrywide Home Loans they will receive a share of the millions of dollars in a payout from overcharges. The FTC settlement focuses around refunding customers that had a loan in default, but were charged increasing fees for property inspections, maintenance and other services such as title searches. The period that the events covers is January 1, 2005 through July 1, 2008.

Countrywide was purchased by Bank of America in 2008. The settlement was originally reached with the FTC in June 2010.

By the Numbers:

  • $108 million: settlement cost between Countrywide and the FTC
  • 450,177: number of customers affected nationally
  • 19,529: number of Georgia customers affected
  • July 21, 2011: Date the checks begin to be mailed
  • September 19, 2011: Date the checks should be cashed
  • 1-888-230-3196: Number to call if you believe you should have received a check, but didn’t

In Georgia this case has impacted thousands over the last few years. Also under investigation lately has been the allegation of unfair practices conducted by mortgage companies to foreclose on a home.

Is your home in danger of foreclosure? Are you facing a possible bankruptcy because of mounting debts? Contact Berry & Associates and learn about your options. We have 11 metro Atlanta locations. We have helped over 20,000 residents file for bankruptcy in Georgia.

Filed under: Bankruptcy News — Tags: , , — admin @ 7:22 am

Be Watchful of New Credit Before You File Bankruptcy

Be careful in what you new credit consist of up to 90 days before you file for bankruptcy. If you incurred new credit of $500 or more for “luxury goods or services” within the 90-day wind before your bankruptcy, or if you obtain a cash advance in the amount of $750 within 70-day period before your bankruptcy, the debt will likely not be able to be dischargeable.

In other words, if you are considering filing for bankruptcy, now is not the time to go on a shopping spree or make personal upgrades to your home or self. Your creditors will see the statements of these new debts and the law will not allow for these to be included in your case and you’ll still have to pay these debits.

Taking out a cash advances either of $750 or more at once or the total of multiple cash advances will likely also not be included in your case. Obtaining any new debt unless absolutely required within the 90-day window is something that many Georgia bankruptcy attorneys advice their clients against.

Have a question about new credit can affect your bankruptcy filing? Click to contact us. Berry & Associates helps Georgia residents file for personal bankruptcy, including Chapter 7 and Chapter 13. They offer 11 metro Atlanta bankruptcy law offices with lawyers on staff Monday – Saturday.

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

The Changes from the New Bankruptcy Law for Georgia Chapter 7 Filers

In 2005, a new bankruptcy law came into effect with some key changes you need to be aware of in order to successfully file. This blog guide focuses on the changes for Georgia Chapter 7 filers. If you have questions about filing Georgia bankruptcy you need to speak with an experienced lawyer.

Main Points
In short, the new bankruptcy law has made it more difficult to file Chapter 7 bankruptcy, with the option of filing with a Chapter 13 plan instead. This is based on how much you make. Prior to the new law, you had the option between Chapter 7 and Chapter 13. The most common form to use was Chapter 7, because you could literally discharge thousands of debt and lose nothing. Chapter 7 is still very common, but less so. There were also some changes made to how Chapter 13 filers, mainly based on giving you less disposable income to live on.

How do you know if you’re eligible?
Under the new bankruptcy laws, you must be below the average income for a family your size. So for Georgia filers, if you make more more than the median income for Georgia residents, you would have to file Chapter 13.

Accordingly, the more you make the less chance you have of being eligible. Here is a quick list as of April 2010 of the current median income.

Family Size 1 – Median Income $40,546
Family Size 2 – Median Income $55, 061
Family Size 3 – Median Income $60,887
Family Size 4 – Median Income $68,258
Add $7,500 for further family members.

If you are below, you are eligible for Chapter 7; if not, you must file Chapter 13. This obviously has been the law for many years, but many are unaware of the significant changes involved. So the higher your family income, the less chance you have of being eligible. You will have to go through a “means test” when you file, so if you’re unsure that can help.

What This Means for Costs
Because filing bankruptcy is now more difficult, lawyers are adapting their prices to the new time issues. It can take much more time to successfully file. While Chapter 7 bankruptcy is usually a quick process, the new means tests for eligibility make the paperwork somewhat more time consuming. It’s still very valuable to hire an experienced Georgia bankruptcy lawyer.

Getting Help
A professional lawyer can help you navigate these laws. Yes, the costs may be more, but don’t forget the benefits of filing, even if you can’t file Chapter 7. In Chapter 7, the majority of your unsecured debts, such as credit and medical debts, can be discharged completely. If you pay your lawyer $2,000 to successfully file, and discharge $50,000, you’re ahead by a lot of money. If you still have questions, a Georgia bankruptcy lawyer can help you with points such as eligibility, and also help you file Chapter 13 if needed.

Filed under: Bankruptcy Information — Tags: , , , , , , — jmalewitz @ 9:29 pm

Unsecured Debt and Filing Atlanta Chapter 7 Bankruptcy

Secured debt is money you owe with assets such as your home and car. A mortgage would be a secured debt, because the home would be like collateral to be taken if you fall behind in payments. Unsecured debt, on the other hand, is actually debt with no collateral. Though creditors can still take collections against you, sometimes get rights to your property, the debt is different. Unsecured debt can be credit card debt, medical bills, and deficiencies after a foreclosure.

One of the best ways to eliminate unsecured debt is Chapter 7 bankruptcy. For Atlanta residents, Chapter 7 has many advantages. You can halt all collection efforts. You can eliminate debts you simply cannot afford. If you fear assets may be taken or other legal action will ensue, you can be protected under law. There are some disadvantages too. This will be a mark on your record for 10 years. You won’t be able to file again for 8 years (or 6 years if you filed Chapter 13 first). Some assets by law can be liquidated in order to pay back some of these debts; assets like a home and car are rarely included, but it happens.

Atlanta Chapter 7 bankruptcy isn’t always your best option. Sometimes filing Chapter 13 bankruptcy has more advantages. As long as your unsecured and unsecured debts are not too high, you are eligible to file, where you may not be eligible for Chapter 7 if you make too much money. If you have a lot of assets, if you’re home is in danger of foreclosure, you can keep these assets and pay debts in manageable installments.

How does Chapter 7 liquidate assets?
You will be charged with a Georgia bankruptcy trustee who will oversee your case. This trustee has the power to sell assets. However, few will lose anything: the great majority of Chapter 7 filers lose no assets. So don’t be afraid of losing your home and car. By following the laws and hiring an Atlanta bankruptcy attorney, you can save assets and discharge debt.

Will all unsecured debt be discharged?
No, the big three debts most people have are credit card, medical, and mortgage. These debts can technically be discharged, though you may lose the home if you do not pay on it. Say you have $20,000 in credit card debt; in this case, filing Chapter 7 bankruptcy can discharge these debts in a matter of months. Or say you have $50,000 in  medical bills; once again, filing Chapter 7 can eliminate these debts.

Debts you can’t discharge include alimony, child support, and back taxes. These are unsecured debts, but by law you have to pay them.

How much does it cost?
Chapter 7 bankruptcy is very reasonable for Atlanta residents looking to eliminate debts. You pay only $299 to file with the court. You should also hire a lawyer. A lawyer will cost more, from $1,000 to $2,500 depending on the time involved for your case.

Why a Lawyer?
There are hundreds of Atlanta bankruptcy lawyers who can help you, but not all are equally experienced and have fair prices. You need a professional, experienced lawyer who will walk you through this process. A lawyer actually saves you time and money, allowing you to discharge the most debt in a timely manner.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , — jmalewitz @ 1:09 pm

Before You File Georgia Chapter 13, Read This

Why not file for Chapter 7 bankruptcy instead of Chapter 13? Before you start making decisions, there are some key points you need to know. First, let’s talk eligibility for Georgia filers.

Bankruptcy Eligibility
For Chapter 7 filers, you have to be below the median income for Georgia. For Chapter 13 filers, it’s uniform: your secured debts cannot exceed $1,010,650 and your unsecured debts must be lower than $336,900. Secured debts are items such as your home and car, where the creditor can take if no payment has been made. Unsecured debts are different in that the creditor has no leverage on you via assets, such as with a credit card or medical bills.

Changes in the Bankruptcy Code several years ago instituted new eligibility requirements, which tend to change based on income and debts. The numbers for Chapter 13 will change again in a few years, as that’s how it works. The changes have made it more difficult to file Chapter 7, making Chapter 13 more common than before.

Why File Chapter 7?
For Georgia residents with little to no income and minor assets, Chapter 7 is much better. It can discharge credit and medical debts of high amounts. If your problem is you don’t have enough money and that may not change – perhaps because of a job loss – you are likely eligible for Chapter 7. The good news here is you often lose nothing, though your credit will be hurt for several years and if you intend to buy a new home or car soon you may have some trouble.

Why Chapter 13?
Georgia residents who have an income, perhaps a home and car, can utilize Chapter 13 bankruptcy in a different way. For one, you pay back some if not all the debts, but you also gain some benefits. It’s been talked about quite often on the Georgia Debt Law blog, and it should be repeated: Chapter 13 is your best option to avoid foreclosure, keep all your assets, and sometimes to avoid wage garnishments. If you file Chapter 7, your assets can technically be liquidated, though that’s not common. But if you have an expensive home you’ve been paying on for 10 years, you may want to avoid losing it. In this and similar cases, Chapter 13 is very smart.

Making the Decision
Bankruptcy isn’t always your best option, but at the least you can sit down and talk with professional counsel about all your options. You may be able to pay these debts yourself. However, if you fear medical or credit card bills will ruin you, hiring a lawyer for Chapter 7 bankruptcy is smart. If you fear home foreclosure, hiring a bankruptcy lawyer to help with Chapter 13 can save it.

Before you file bankruptcy, the best choice you can make is hire a professional Georgia bankruptcy lawyer.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , , — jmalewitz @ 8:59 pm

Options to File Bankruptcy In Atlanta Georgia

You have many options when it comes to bankruptcy – which form of personal bankruptcy, how to handle creditors, how to handle debt not discharged or paid, and perhaps often ignored but still important, what bankruptcy lawyer to hire. This blog guide gives you the key options for filing bankruptcy in Atlanta, Georgia.

What Form?
Well, we go over the forms of bankruptcy often on this blog, but if you’re new to Georgia Debt Law, you may wonder exactly what your options are. You have Chapter 7 or Chapter 13 bankruptcy. Each form has different positives and negatives, which an experienced Atlanta bankruptcy attorney can help you with.

Chapter 7 is used over 75% of the time by Atlanta residents; it discharges major debts such as credit and medical debt. Chapter 13 is your only other option, but it’s benefits can be supreme – save your home from foreclosure and keep your other assets.

No matter what you choose, you may wonder how creditors should be handled.

Creditors Do What?
Technically, after you file bankruptcy creditors have no more reason to contact you. In some cases, they might appeal your bankruptcy, still hoping to get their money. Most of the time these attempts fail, but be mindful if the appeal is made. You can, even before bankruptcy, write letters to your creditors asking them to stop contacting you. By law they have to. If you file, and they continue to call, refer them to your Atlanta bankruptcy lawyer.

What Debts are Discharged?
In Chapter 7 bankruptcy, the biggest debts discharged are credit card, medical, and mortgage debt. Some debts cannot be discharged, including alimony, child support, and back taxes.

Chapter 13 bankruptcy is different, as you’re only discharged from the debts after your debt repayment plan is finished.

What Lawyer Should You Hire?
You want to file Atlanta bankruptcy, but when it comes to lawyers experienced in Georgia law, you’re just out of options. Hiring a lawyer is neither a race to find the first one nor the search for the cheapest. There are many experienced Atlanta bankruptcy lawyers who show value, because, after all, by doing this you’re saving far more money and assets than you lose.

Yes, hiring an experienced lawyer can be hard. You have many options in Atlanta. You do likely have a budget – most bankruptcy lawyers charge flat rates for helping you file successfully. Query 5-10, compare rates and experience, and give one a try.

Filed under: Bankruptcy Information — Tags: , , , , , , , — jmalewitz @ 2:38 pm

What Decisions are Made in Georgia Bankruptcy Court?

In a recent post, we went over what happens in Georgia Bankruptcy court. This post goes even deeper, highlighting subjects such as the 341 meeting, and other points in court where information is obtained and decisions are made.

For Georgians, bankruptcy court includes the Georgia Middle District Court, Georgia Southern District Court, and Georgia Northern District court. Each have courts in regions of Georgia, and depending on where you live you’ll be going to the court for that area. For example, if you’re an Atlanta resident, you would go to the Northern District Court.

Now that you know where to go, you might have some expectations of getting into fights with creditors in court. In most cases these processes are very simple in terms of what occurs. You will appear in court regardless of whether you file personal bankruptcy Chapter 7 or Chapter 13

The 341 Meeting
“341″ gets its name from the piece of bankruptcy code it applies to. A 341  meeting is far from some court room drama: you are actually only there briefly. The trustee — the person appointed by the court for your Chapter 7 hearing — will be finding out your exempt and nonexempt assets, and also ask some basic questions to you. While it’s not a battle, if things come up which should have been noted before, such as a property you didn’t list, this information can technically be used against you. In other cases, new information may help you successfully file while losing little if anything. Remember, in most Chapter 7 cases, including  in Georgia, you lose no assets.

What kind of questions will you be asked at this 341 meeting? The trustee usually has a list of simple questions regarding the facts of your bankruptcy filing: if you left assets off, for example.

And in most cases, creditors will not even appear at the hearing, though they are invited.

Chapter 13 Georgia Bankruptcy Court
If you file Chapter 13 bankruptcy, you must also appear in court, typically for a longer period. You will have a different kind of meeting with creditors as defined by the trustee. In both Chapter 7 and Chapter 13, you usually have an appointment for a 341 meeting within 30 days.

What happens if you don’t have all the information?
A 341 meeting can and is often extended until you can provide all the necessary information.

What if you have assets not listed?
If you have assets not listed in your bankruptcy filing, simply state you made a mistake. Unfortunately you are still responsible for doing this. If you try to hide assets, it can only damage your chances. If it’s a simple mistake, be thorough in handing over information on all assets to the trustee.

What will you lose?
As stated earlier, Chapter 7 bankruptcy filers typically lose nothing. If you have a home or car, in many cases they are considered exempt and you won’t lose them. The whole purpose of Chapter 13 bankruptcy is to keep assets instead of selling them, so if you can maintain your repayment plan you can keep everything.

How will creditors act?
Creditors rarely appeal . Once you file, they have the option to fight for your right to bankruptcy. If you filed for Chapter 13 bankruptcy and received an automatic stay on your home, technically creditors can appeal. Most are barely involved at all.

Where to go for professional help?
If this all sounds complex, that’s because it can be. If you are honest, you’ll rarely have any trouble. You do need professional counsel for any bankruptcy case; while the in court drama is limited, correctly filing is important. Also, if you fear assets being taken, you can get help from a Georgia bankruptcy attorney.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , — jmalewitz @ 1:58 pm

What Happens in Georgia Bankruptcy Court?

How does the Georgia bankruptcy court work? Bankruptcy, by federal law and the bankruptcy code, allows for debtors relief from bills. The current bankruptcy code for personal bankruptcies involves only Chapter 7 bankruptcy and Chapter 13 bankruptcy.

What Chapter 7 bankruptcy Means To You
Chapter 7 bankruptcy is a liquidation process designed to eliminate debt by appointing a trustee to liquidate your assets.

What Chapter 13 Bankruptcy Means To You
Chapter 13 bankruptcy, now more common than in the past years with new bankruptcy codes for income limits, essentially is about paying back your debt only over a longer period.

What happens in Chapter 7 bankruptcy court?
Chapter 7 bankruptcy, beyond filing with courts, is actually a very simple court case where you have little direct involvement. It’s wise to hire a good Georgia Chapter 7 lawyer who can help you through the process. In most cases, you will rarely if ever have any involvement in the court proceeding. The only time you may be involved is when the is when an objection has been raised in the case.

What happens in Chapter 13 bankruptcy court?
Chapter 13 filers are more involved than Chapter 7 filers, but it’s still limited. You only have to appear before the court at a plan confirmation hearing. You really only have to be involved with the meeting of creditors, held at the offices of the U.S. trustee.

How Chapter 7 bankruptcy Helps
Typically, you will have no problems filing for bankruptcy beyond the future credit history it entails (bankruptcy stays on your record for 10 years). Chapter 7 filers will rarely lose major assets, will often be accepted unless you make too much money, and you’ll be discharged of debts in a  matter of months.

How Georgia Chapter 13 Bankruptcy Helps
Georgia Chapter 13 is more common because of bankruptcy code changes in the past decades; this includes all U.S. citizens and Georgia Chapter 13 filers. The most common benefit of filing Georgia Chapter 13 is saving your home from foreclosure. This is very common, especially in the economy in the U.S. the past 5 years and in the home owner problems many have had. If you file Georgia Chapter 13 bankruptcy, you can pay back debts over 3-5 years, including mortgage payments. But you must stay current on the payments.

How Georgia Bankruptcy Attorneys Can Help You
Bankruptcy is far more complex than filling out some documents and submitting to a court. Bankruptcy code changes from time to time. For instance, did you know Chapter 7 is off the table for far more filers than ever before? In order to successfully file, a good Georgia bankruptcy attorney is key.

Filed under: Bankruptcy Information — Tags: , , , , , , , , — jmalewitz @ 12:17 pm

Advantages of Filing Chapter 7 and Chapter 13 Bankruptcy Before Georgia Foreclosure

Filing for Chapter 7 or Chapter 13 bankruptcy is too complicated for many individuals to do by themselves, but the benefits of bankruptcy can be had by all. While it can be a complex and difficult process, in most cases Chapter 7 and Chapter 13 bankruptcy do more than give you a fresh start–they give you a second chance.

As noted in this blog post on Georgia Debt Law, if you’re facing foreclosure then  bankruptcy is often your best option. At a minimum, you have extra time to find a second residence. At best, it buys you time to save your home.

Just what bankruptcy should you file and how does it work?  First, let’s go over exactly what a foreclosure is.

Georgia Foreclosure
You fall behind on your mortgage payments, and the lender isn’t working with you on a payment plan. Maybe you have too many other bills, such as medical fees or car payments, or maybe you lost your job or someone close to you passed away. No matter the reason, the lender can take steps to bring foreclosure on your home, selling it at an auction and paying back your debt through the sale.

There are many alternatives to filing bankruptcy, but in terms of foreclosure, if you’re behind on payments sometimes there is little else you can do. If the lender is unwilling to negotiate, if you have bad credit, or if you have no other place to go if you lose this home, bankruptcy is almost a must.

Georgia Bankruptcy
Filing bankruptcy in Georgia usually calls for Chapter 7 or Chapter 13 bankruptcy. The good news with Chapter 7 bankruptcy is that it buys you extra time to find another residence (if you have few other places to go). This can be several months if not longer, as by law the courts can protect you.

How? If you file Georgia bankruptcy, there is the “automatic stay” which usually gives you 3-4 extra months extra time. You will likely lose your home if you file Chapter 7 bankruptcy in Georgia, but 3 months is a lot of time to figure something out.

On the other hand, you may want to fight this to the end. The best option if you want to keep your home–if you want to fight for it–is to file Chapter 13 bankruptcy in Georgia.

Advantages of Chapter 13 Bankruptcy in Georgia
Chapter 13 bankruptcy can save your home. You will need enough income to meet your current mortgage payment, so do what you can to get that. After, you will set up a repayment plan over a few years time–usually 3-5 years. This means you’ll pay back the debt over a longer period. It  does call for bringing in more money, but Chapter 13 bankruptcy is the foreclosure solution.

Hiring a Georgia Bankruptcy Lawyer
Your best choice is to discuss this with a Georgia bankruptcy lawyer. Did you know, for example, you may be able to cancel your 2nd and 3rd mortgages? It’s not a dream, with the right assistance you can. And people successfully file for bankruptcy in Georgia to stop or delay foreclosures. All you  need now is to choose a lawyer who can help.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , — jmalewitz @ 8:08 pm


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