The assumption is that bankruptcy petitions will increase in Georgia as the employment rate improves. As people get back to work, those in financial trouble will be able to pay the price of filing and they will have the income needed to pay their creditors. The need for income is necessary for filing a Georgia Chapter 13 for example. Equally, as people have income, and pressure from creditors for repayment, the desire to take action will increase because residents will have more to lose.

Read the Boston.com article: Bankruptcy Filings Down but May Signal Financial Struggles

As the economy improves it is also expected that creditors will put additional pressures to collect from debtors. In the last year foreclosure filings have been more relaxed, which is an indicator that an uptick may occur later in 2011, if not in the first half of 2012. Attorneys like Berry are preparing for the economy to shift and more consumers to come to his law firm with questions. His law firm Berry & Associates operates 10 bankruptcy law firm locations in metro Atlanta.

Is the bankruptcy filing rate down because the economy is better for those on Main Street, or is it because consumers considering bankruptcy cannot afford to file, or are not receiving enough pressure to tip them towards filing?

A recent article came out that featured a quote from Jack Williams. Williams is a Georgia State University law professor suggests that there is an “invisible class of debtors who can’t afford to file.” If this invisible class is true, then bankruptcy rates will go up as unemployment goes down and the economy recovers.

The logic behind this is that people will have more of value and an easier ability to file for bankruptcy. If this starts to take affect later this year, into 2012 and beyond, it is sure to keep Georgia lawyers busy with Chapter 7 and Chapter 13 filings.

As a citizen in Atlanta, do you know what your rights are when filing bankruptcy?  How will bankruptcy affect your student loans, taxes and your mortgage payments?  Does filing change the status of your business debts, lease agreements or credit card payments?  Should you qualify for Chapter 7 Bankruptcy or Chapter 13, and what impact will it have on your personal and your business goals?

To make the most efficient recovery from your economic situation, you need an Atlanta bankruptcy attorney with a deep knowledge of bankruptcy exemptions.  A skilled bankruptcy attorney will equip you with the knowledge of how your assets will be affected in both the short term and the long term.  Their counsel will also give you confidence when faced with a creditor who is using harassing techniques.

As your advocate, an experienced bankruptcy attorney will prepare you for court hearings, options to consider when dealing with creditors, including what type of monthly payment plan is affordable (depending on how you file).

Don’t face bankruptcy alone.  Surround yourself with a skilled team that can help you weather the storm and establish a solid financial future.