Common Georgia Post-Bankruptcy Problems

Whether you file Chapter 7 or Chapter 13 bankruptcy in Georgia, you may be worried about what happens after you file. You won’t be able to get a credit card. You will still owe money. You won’t be able to get a loan. You might have trouble making ends meet. Well, some of these problems have a basis in fact, but some are myths. You can always rebuild credit. You should owe little to nothing. You might have to rebuild your credit before getting a loan. And you may have to be thrifty for some time in order to get new credit cards and loans. But you can get a fresh start.

There are many pitfalls you can avoid when you file for bankruptcy help. After you file, some big decisions need to be made. If you make the right choices – and follow the advice of this guide – you can avoid many post-bankruptcy problems.

Bad Financial Planning
Just because you file bankruptcy does not mean all your problems will go away. Nor will you be able to spend money freely or ignore how you created these problems. Poor financial planning is a leading cause of second and third bankruptcies. You discharge a debt, then go and create a new one. If you can change how you spend money – and budget what you have – you stand to save a lot.

Rebuilding Credit
Another problem people have is in rebuilding credit. Some are taken advantage of by credit repair agencies. These agencies are almost always a dead end. They tend to bend the rules or flat out lie to you about how they can help. In other words, they take advantage of you. Your credit needs time to be repaired. There are no secrets. You might get a secured credit card and slowly improve your credit score. You might start spending money on cards and paying them off immediately. If you follow common sense, you can rebuild your credit.

The Wrong Credit Cards
In order to rebuild your credit, you are going to have to get some credit cards. One common problem people have is getting cards with high interest rates and then spending too much on them. Or you sign up for a plan after hearing some pitches, only to find out about monthly fees you simply should not pay or some other way to take your money. Creditors want money too. They can take advantage of you, so be careful in what credit cards you sign up for.

Using Chapter 7 Correctly
If you are going to file Chapter 7 bankruptcy, do so the right way. You stand to save tens of thousands of dollars, but this is not a get out of jail free card. Sometimes the debts are not your fault, but what you do after a bankruptcy filing can change your life. If you can save money, rebuild your credit, and budget what you have, you can get a fresh start.

Filed under: Bankruptcy News — Tags: , , , , , , , , , , , — jmalewitz @ 5:57 pm

Your Georgia Bankruptcy and Foreclosure Options

If you are facing immense debt or a foreclosure of your home, you may wonder what your options are. You have far more than you might think. You should always consult with an experienced Georgia bankruptcy attorney prior to making any big decisions. This blog guide explains some of the options you have and decisions you’ll need to make.

Your Chapter 7 Option
All bankruptcy discharges debt, just in different ways. Chapter 7 sells off some of your assets in order to pay back debts. You typically lose little, but save a lot of money. If you have a $50,000 medical debt, or a $100,000 credit card debt, or a mortgage you cannot afford after being laid off, you do have options. You can file Chapter 7 bankruptcy to discharge these debts. You may be wondering what you’ll lose. Few bankruptcy filers who follow all the rules lose many assets when it comes to Chapter 7 bankruptcy. Technically your home, car, and other valuables can be taken, but this is a rare and there are ways to protect them. You might discharge other debts and continue paying on your mortgage, for example.

Your Chapter 13 Option
Chapter 13 bankruptcy also discharges debt, but it’s debt you are paying back. You are not eliminating this debt like you are in Chapter 7 bankruptcy nor selling off assets; you are paying it off and not selling anything. If you have an income, Chapter 13 bankruptcy can be a smart option. You stand to protect your home from foreclosure, your car from repossession, your wages from garnishment, and having other valuables taken from you. In Georgia, where foreclosures are a major problem, Chapter 13 bankruptcy can buy you time to pay off your debts and keep your home.

Your Foreclosure Options
Where in some states homes are being foreclosed on at 1 in 800 per month, in Georgia the number is closer to 1 in 250. So every month 1 in 250 homes are being foreclosed on. How can you avoid this? We went over one of your options: to file Chapter 13 bankruptcy. If you file before the foreclosure process is started, the judge will put an automatic stay on all your debts – and this stops collections against you and a foreclosure. If you wait too long, you may still lose the home. You have another option involving Chapter 7 bankruptcy. You might discharge certain debts but continue paying – called affirming the debt – on your mortgage. This way you can both save money and keep your home.

Your Lawyer Options
You have far more options than this, but let’s close with your options in hiring an experienced Georgia bankruptcy lawyer. You can look online, such  as at the Georgia State Bar, found at GABar.com, where you can find many experienced bankruptcy lawyers. You want someone local. You want someone you can afford. And you want someone you can communicate well with. Bankruptcy can take some time. If you hire a lawyer you do not like working with, you can also fire him or her and hire another.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , , , — jmalewitz @ 3:25 pm

Important Georgia Foreclosure and Bankruptcy Laws

If you’re trying to avoid foreclosure or considering bankruptcy, you have many options and some decisions to make. First off, how can you avoid foreclosure? Technically you can use bankruptcy to avoid a foreclosure. You can also sell your home or use a short sale to avoid foreclosure. Foreclosure laws vary from state to state, so if you’re unsure about the process, it’s time to consult with an experienced Georgia bankruptcy attorney or real estate expert. To get you started, let’s go over the basics of Georgia foreclosure and bankruptcy laws.

The Power of Sale
In Georgia foreclosure, you can lose a home by either judicial or non-judicial means. The power of sale is important here too. The “power of sale” is the term used when the owner of the property signs a document explaining that by defaulting on the mortgage the home can be sold to pay off the balance. In a non-judicial foreclosure, there is a power of sale in effect. In a judicial foreclosure, no power of sale has been signed, so the foreclosure will go through different means. If there is no power of sale – with a judicial foreclosure – a lawsuit will be filed to gain the power to foreclose on a property.

Chapter 7 Bankruptcy
Technically you may be able to use a Chapter 7 bankruptcy filing in Georgia to avoid a foreclosure. While Chapter 13 is usually far more effective, Chapter 7 can be used to discharge other debts, while you affirm certain debts such as on your home and car. To be eligible for Chapter 7, you must not make too much money, the average median income for Georgia. If you are unsure about this, contact an experienced Georgia bankruptcy lawyer.

Chapter 13 Bankruptcy
If you own a Georgia home, Chapter 13 bankruptcy is the most useful strategy to save it from foreclosure. You might have fallen behind on payments, but want to keep it. You may owe too much debt and have recently lost some of your income. You may have no other place to live if you lose your home. If you can afford to make some payments, and if you file before the foreclosure is started, you can keep your home.  It’s important to file before the foreclosure process has started. If you wait until weeks before they are to take your home, it’s too late. If you take action early, file some form of bankruptcy and speak to a lawyer, you may save some money.

Your Right to a Georgia Lawyer
Finally, if you want to avoid foreclosure, it’s time to consult with some legal help, and that means working with an experienced bankruptcy lawyer. A lawyer can best explain your options. Bankruptcy may be best. You may save more with a short sale. You may want to simply leave the home. If you want to keep your home, a lawyer can be invaluable.

Filed under: Bankruptcy News — Tags: , , , , , , , , — jmalewitz @ 12:53 pm

How to Make Important Bankruptcy Decisions in Georgia

If you’re considering bankruptcy, you may be scared about some of the decisions to make. How can you save money? How can you save property? How can you save time? This guide can provide legal help.

Get Legal Help
Your first decision is in getting legal help. For Georgia bankruptcy filers, this is a critical decision. If you lack the funds to hire a lawyer, you should still try to get one. While not all lawyers are equal, you need legal guidance from a good lawyer. A lawyer can explain the advantages of both Chapter 7 and Chapter 13 bankruptcy. A lawyer can help you protect property. A lawyer can answer all your questions. And a lawyer can help you make important decisions.

Where will you find an experienced Georgia lawyer? You can find them at the Georgia State Bar. You can find them online. You can ask for referrals from your family lawyer. Don’t discount the importance of hiring legal help; it’s crucial in making these decisions.

Find Resources
You should look anywhere you can for legal resources, especially online. There are many state, federal, and lawyer run legal resources online. You can read articles on how Chapter 7 bankruptcy works. You can find out how to protect property with a Chapter 13 bankruptcy. You can also find help on getting a lawyer. Take advantage of your legal right to file bankruptcy by understanding how it works. A redlined and hyperlinked version of the U.S. Bankruptcy Code and other bankruptcy related statutes and rules can be found at Weberlaw.com. This resource details all changes made to federal bankruptcy law by the 2005 bankruptcy reform legislation.

Ask Questions
There is always good reason to ask questions. Well, it’s not elementary school, but it is important to ask these questions. Ask your lawyer. Ask online. Ask experts. Asking questions is how you learn, especially when it comes to filing Georgia bankruptcy. You likely don’t know much about how bankruptcy works, but you can find out more by getting legal help, going over resources, and using these to find answers.

What kind of questions might you ask? You might ask your lawyer how best to discharge debts with Chapter 7 bankruptcy. You may ask your lawyer about foreclosure laws in Georgia and how bankruptcy can help. You can even ask questions of those who filed bankruptcy before on how the court process works.

Focus On The Long Term
Finally, some decisions you make we can help with right now. Should you avoid bankruptcy by tapping into your savings, retirement fund or 401K? Rarely if ever should you avoid bankruptcy and limit your future options. If it’s only going to buy you a few months or a year, it’s not worth it. If a year down the road you have the same problem, it won’t make much of a difference, and you have less money. Therefore, focus on your long term goals instead of trying to avoid bankruptcy.

Filed under: Bankruptcy News — Tags: , , , , , , , , , , — jmalewitz @ 4:57 pm

Why File Joint Bankruptcy in Georgia?

In order to understand what joint bankruptcy is, you must first understand individual bankruptcy. This form of bankruptcy occurs via more normal means: you have a debt, you need help, so you file as an individual. It’s the most common form of bankruptcy. As it sounds, joint bankruptcy occurs when you file with another person. Why would you file joint bankruptcy?

You Both Owe Immense Debts
If you and your spouse are eligible, joint bankruptcy has many advantages. First of all, if you both owe on the same debts, one person filing may mean the other person will continue to owe the debt. So if you file Chapter 7 as an individual, your credit card debt may stay on your spouse’s record. If you both owe quite a lot of money, it’s smart to file for bankruptcy help.

If You Don’t Make Too Much
If you and your spouse make more than the Georgia median income, you would not be eligible for joint Chapter 7 bankruptcy, but you would be eligible for joint Chapter 13 bankruptcy. If you don’t make too much, you can take advantage of joint Chapter 7 bankruptcy,which stands to save you both tens of thousands of dollars. On the other hand, a joint Chapter 13 bankruptcy can help protect secured debts like your home and car.

Save On Fees
When you file together, you pay one lawyer, and pay one fee. The filing fee for Chapter 7 bankruptcy is $299, and $274 for Chapter 13 bankruptcy. While saving on those fees may seem minor, it can be big if you’re running low on income. If you hire one lawyer, it won’t necessarily be cheaper, but it should save you In the end.

Save Time
It takes time to file bankruptcy. Even if you hire a good lawyer,the paperwork can be quite lengthy. On the other hand, if you file together it can cut down considerably on paperwork. And it protects you legally if you both owe debts, so you won’t have to fight back and forth with creditors.

How to Get Started
If you’re still unsure about joint bankruptcy, that’s okay. This post was only designed to help you get started. Filing bankruptcy is never easy, but it can change your life. To get started, start studying more on how Georgia Chapter 7 and Chapter 13 bankruptcy work. You should also consider consulting with an experienced Georgia bankruptcy lawyer.

Where to Find a Lawyer
The Georgia State Bar is a good resource, as is searching via online means. There are hundreds of lawyers capable of helping you, but make sure you get one you can communicate well with, who can explain how this process works, and who in the end will help you save money.

Filed under: Bankruptcy News — Tags: , , , , , , , , , — jmalewitz @ 2:15 pm

The Many Reasons to File Chapter 7 Bankruptcy in Georgia

There many reasons not to file bankruptcy, if you listen to some credit counseling and debt management agencies. There are in fact many more reasons to file. In the first place, credit counseling agencies do nothing you really cannot do yourself, and some charge excessive fees. Few people who consult with credit counseling continue with it. Why? One session can either teach you all you need to know, or lead you away from more useful debt solutions.

The problem with credit counseling agencies is simple: they often warn you of bankruptcy. Well, there are many, many reasons to file bankruptcy in Georgia, a state with unemployment rates higher than the national average as well as 1 in 250 homes going into foreclosure every month. Chapter 7 bankruptcy, specifically, can literally change your life. How so?

Bankruptcy Saves You Money
This may seem quite obvious – of course bankruptcy saves you money! – but many overlook bankruptcy, thinking it’s not an option. You pay $299 to file Chapter 7 bankruptcy. You should hire a lawyer, but even then you are paying a low fee for help which can save you tens of thousands of dollars.

Bankruptcy Gives You New Chances with Money
If you in over your head with debts, you may wonder what to do. Even if you have a good job, if your debts are such that you cannot pay them off in 3 years, consider Chapter 7 bankruptcy. The point here is, it may be easier on your credit to discharge the debt and start fresh. While it may sound odd, if you owe a $20,000 medical bill, a bank lender may have more concerns about loaning you money; if you owe little to nothing, you may have a better chance of getting a loan. Bankruptcy does not help your credit, but neither does it ruin it.

Bankruptcy Allows You to Discharge Impossible Debts
If you owe a $100,000 medical bill, for example, and make $40,000 a year, you have an impossible debt. It’s more than you might make in two years. As noted, if you cannot pay something off in a reasonable amount of time on your own, if it will hamper your life greatly, you may consider Chapter 7 bankruptcy. You can only file every six years, but if you do it right you won’t have to file again.

Chapter 7 Bankruptcy is Cheap
And if you pay a lawyer $1,000 and pay the $299 filing fee $1,299 to discharge that $100,000 medical bill, or whatever it is, it’s more than worth it.

Chapter 7 Bankruptcy Gives You a Fresh Start
Finally, bankruptcy is a second chance at a new life. It will not solve all your problems, you will have to change some things, and you won’t end up rich, but you can get a fresh start with money. Maybe that’s enough.

Filed under: Bankruptcy News — Tags: , , , , , , , — jmalewitz @ 1:43 pm

Your Options and Your Rights in Chapter 13 Bankruptcy

Should you file Chapter 13 bankruptcy? Foreclosures are high in Georgia. We have unemployment over 10%. If your income has decreased and your struggling to pay a mortgage, you may think you’re out of options. Yet you have more options than you might think. And you have a right to file Chapter 13 bankruptcy in most situations. This blog guide will explain how your options, while also going over your rights.

Are you eligible?
Your secured debts cannot exceed $1,010,650, and your unsecured debts cannot be more than $336,900. So if you owe $15,000 in secured debts and $100,00 in unsecured debts, both quite high, you would still be eligible. Many who are not eligible for Chapter 7 bankruptcy are in fact eligible for Chapter 13 bankruptcy. Therefore, you usually have this option.

How much do you owe?
If you owe a lot of secured debts, and have the option of either Chapter 7 or Chapter 13, you may consider Chapter 13 over Chapter 7. If you owe more unsecured debts, monies owed on credit cards for example, you may be better off with Chapter 7.

What will you lose?
With Chapter 13 bankruptcy, you have the option of protecting your secured debts, such as monies owed on your mortgage and car. This is why Chapter 13 bankruptcy can be much better for you financially. If you have a job, a $200,000 home, and some debts you need help paying, you buy yourself 3-5 years time to pay back debts with Chapter 13 bankruptcy. If you can keep up with the repayment plan – which is very important – you can protect your assets and properties.

How much will it cost?
Chapter 13 bankruptcy only costs $299 to file, so you almost always can afford that minor fee, especially when you consider that you might protect a valuable home, the car you need to get to and from work, and the other valuable items you might have.

Your Legal Options
Should you hire a lawyer or forgo hiring a lawyer? It really makes no difference whether you file Chapter 7 or Chapter 13 bankruptcy: in both cases you should consider exercising your legal right to a lawyer. With a Chapter 13 bankruptcy, you can be done in 3-5 years, and pay a small fee to a lawyer to ensure you follow all laws, that creditors do not take your property or harass you, and that you can start fresh. Unless you are a bankruptcy lawyer, you should consider hiring an experienced Georgia lawyer.

Your Other Options
You have a right to file for help, but should you consider credit counseling or debt management plans instead? Rarely do these companies do you a great service, though when filing for bankruptcy you must go through an accredited credit counseling company. Credit counseling can sometimes be a help, but this does not eliminate your debts. And debt management companies, who offer to lower your payments, do no negotiating you cannot do yourself.

If you have a right to file bankruptcy, whether it’s Chapter 7 or Chapter 13, and you have some impossible debts or properties in danger of foreclosure, it’s time to consider speaking with a Georgia lawyer.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , — jmalewitz @ 8:14 pm

Georgia Bankruptcy Tips: Save Money and Your Home

Bankruptcy is one of the biggest financial decisions you will make in your life. Therefore, spend time studying it, make sure you follow all laws, and hire an effective bankruptcy lawyer for help. This guide gives some essential tips on saving money throughout the process, while also giving help to home owners facing foreclosure.

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.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , — jmalewitz @ 1:57 pm

Unemployment and Georgia Economic Outlook

In a recent article on CourierPostonline.com, journalist Jeannine Aversa points out the economic reality we in Georgia are facing. Georgia is unique, but not in a good way. We have a 10% unemployment rate, with the country averaging 9.6%. If you factor in foreclosures, which, according to RealtyTrac.com, amount to 1 in every 250 homes every month, the problem is clear.

And economists are not foreseeing many economic changes in 2011. What will the Georgia economic outlook be in 2011? The average rate of unemployment for the U.S. has traditionally been 5-6%. That may sound incredible, but in reality those numbers were very common in the past decades, through recessions and booms. Economists, as noted in the Aversa article, are not predicting much of a change in unemployment in 2011. Some are predicting the national average in 2011 to be just under 9%, at about 8.7%. In previous estimates, it was expected that unemployment would be lower than this.

Is Georgia different? We have more unemployment than most states, more foreclosures than most states, and more bankruptcies too. And incomes have gone down too: in the years 2006 to 2007, when compared to the time of 2008 and 2009, incomes have dropped about 13%, averaging about $6,000 less income per person.

This is the economic reality we face.

Are there solutions? The entire country is facing tough economic times, though states such as Georgia and Florida have been hit particularly hard, especially in the wake of the mortgage crisis.

You may have to change spending habits. The pricey car, dream home, and expensive college education for your child may have wait. You have to start thinking of cutting down on expenses. And you have to continue with the hope things will change. They will. Not everyone in the country is being hit hard, and there are still many options for all of us.

You may consider filing Chapter 7 bankruptcy to discharge your debts if you are unemployed. If you are working, but fall behind on your mortgage, you may file Chapter 13 bankruptcy to avoid a foreclosure. Chapter 7 is the most common form of bankruptcy, yet Chapter 13 should be considered too, especially if you own a home.

Chapter 7 is best for eliminating unsecured debts – medical and credit card monies owed, most commonly. Chapter 13 takes more time, and does not eliminate the debt, but allows you to pay over time. If you are facing foreclosure, you may want to consider Chapter 13.

If you are unemployed, how can you afford to file bankruptcy? Filing is not very expensive. Bankruptcy lawyers with experience are willing to work with you, to help you save money, and to protect your assets. If it’s $1,500 total to discharge $20,000 or more, filing is more than worth it.

Filed under: Bankruptcy News — Tags: , , , , , , , , , — jmalewitz @ 1:55 pm

8 Ways a Georgia Bankruptcy Attorney Helps and Protects

1-Understand Bankruptcy
Where do you start when it comes to Georgia bankruptcy? You start with the right game plan. You learn how the process works. You find out what debts can be discharged. You see which assets are exempt. You consider whether to file Chapter 7 or Chapter 13, and therefore go over eligibility. This all can be very technical. You need not read 100 books and research for weeks. You can hire an experienced Georgia attorney to help understand bankruptcy.

2-Helps You Discharge Debts
A good Georgia bankruptcy attorney helps you discharge the most debt. Is Chapter 7 or Chapter 13 better for you? Sometimes you stand to save more property with Chapter 13. Other times a Chapter 7 bankruptcy can save the most money by discharging the most debt. An attorney can help with this decision.

3-Helps Stop Creditor Harassment
A good attorney can also help you stop creditor harassment. If you owe a lot of money, you may be getting phone calls every day. There are rules, first of all, which protect you, such as calling too early or late in the day. If you file bankruptcy, most creditors have no reason to call you. If they do, refer them to your attorney.

4-Protect You Legally
Bankruptcy can be rewarding, but if you make mistakes, it may lead to your request being denied. You may not list all your assets, for example. An attorney can help here by going over all that you must list in order to file.

5-Protect Income
If you fear wage garnishments because of debts – a reality for many of us – by filing bankruptcy you will get an “automatic stay” stopping all collections against you. If you filed Chapter 7 bankruptcy, the judge would put the automatic stay on all collections, and then after 3-4 months most of these debts would be gone. If you are unsure on how this works, a Georgia attorney can help.

6-Protect Your Home
Foreclosure can seem more like a nightmare than reality, especially if you’ve lived in the same home for much of your life. If your family has no other options, hiring an attorney and filing Chapter 13 bankruptcy before the foreclosure process starts can literally change your life. You have legal options for stopping a foreclosure, but the first step is to hire an attorney.

7-Protect Your Car
Repossessions are also a reality for many of us, and again, as with your wages, you can stop a repossession in its tracks by filing Chapter 7 or Chapter 13 bankruptcy. Will you lose the car if you discharge the debt? Yes, if you discharge the debt via Chapter 7, you stand to lose it. On the other hand, with some legal help you can pay outside the bankruptcy.

8-Protect Your Future
For you and your family, bankruptcy can be a life changing event. Instead of fighting creditors for the rest of your life, you can be free. Instead of borrowing money to pay your child’s tuition, you can avoid another debt. If you are unsure of how bankruptcy works and how to use it to best protect your future, you need an attorney.

Filed under: Bankruptcy Information — Tags: , , , , , , , , , , — jmalewitz @ 3:41 pm


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