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

Inflation
Investments have begun to yield less
The auto industry
Oil prices
The federal budget
China economy slows
Unemployment
Debt ceiling
Access to credit
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: Credit card, Creditor, improving credit score — admin @ 7:12 am

Rebuilding Your Credit with 100 Words post-Bankruptcy

For those that are either preparing to go through personal bankruptcy or have recently gone through a Chapter 7 or Chapter 13, the topic of credit reports is not one that people like thinking about. Looking at credit scores and credit reporting makes many consumers nervous as is, without factoring in how much more stressful it can be for those that have recently sought or obtained bankruptcy protection.

Your credit score and credit history are essential components into getting approved for credit and what interest rate you’ll pay if approved. If you are planning a large purpose or looking to apply for a new job, then you already know that your credit report is something that is important. While you think hope might be lost, there are 100 words that can help you get on the path of rebuilding your credit.

AOL Money & Finance came out with a helpful article, 100 Words That Can Change Your Credit History. In this article a little known fact is discussed. All three credit-reporting agencies are required to allow consumer to attach a 100 word statement to their credit reports.

If something is inaccurate in your credit report that is taking a long time to clear up, this 100 word statement can be helpful. This statement can also be useful if you are looking to reassure a lender, creditor or other person that is reading your credit report. While this won’t impact the actual credit score, in terms of its numerical value, it can be a useful piece of qualitative documentation, especially if a manual review of your credit report is occurring.

Important to Know about 100 Word Credit Reporting Statement:

You need to manually submit it to each of the credit reporting agencies (Equifax, Experian and TransUnion)
The statement will stay on file as long as you leave it there
3-4 sentences are recommended
Excellent topics can include: identify theft, medical emergency, or an error with a business that is taking a long time to clear up
Be specific and avoid emotion
Be accountable for your actions and be sincere without making excuses
Proofread — this statement is only 100 words so the grammar and spelling should be perfect.
Chapter 13 Georgia filers should consider revising the 100-word statement once they receive a full plan discharge

While a 100 word statement in your credit report won’t help improve your score, it can help shed some light on what has happened in your financial past. Things happen in life, good and bad. The 100 word statement is an opportunity to take something that is bad and try to explain it so it is a minimally harmful as possible. As you go through the filing and rebuilding process your bankruptcy lawyer will be helpful in sharing methods to rebuild your credit.

Filed under: Bankruptcy Information — Tags: Credit card, improving credit score — admin @ 8:31 am

6 Challenges of Bankruptcy

Bankruptcy challenges you in ways, but when you can save tens of thousands of dollars or protect your family home, it’s also easy to see the benefits. This blog guide goes over the mental, legal, and monetary challenges you face.

To Stay Positive
Mentally, staying positive is hard when challenged by extreme debt or a mortgage you cannot pay on. How do you stay positive before bankruptcy? Look at how much you stand to save, focus on what you want to keep , and set goals on where you want to be in 3 or 5 years time. Look to the future, in other words.

To Get the Right Lawyer
Georgia bankruptcy law is complex. For example, if you file Chapter 7 bankruptcy, your home exemption only covers so much. If you file Chapter 13, you need to spend some time developing a repayment plan. The right person to help is an experienced Georgia bankruptcy lawyer. His or her job is to help you make key decisions and reap the rewards of bankruptcy.

To Be Eligible for Bankruptcy
Are you eligible? Well, it depends on what you make in one case and what you owe on the other. For Georgia residents, if you make more than the median income of our state, you may not be eligible for Chapter 7 bankruptcy. On the other hand, if your income recently took a nose dive – perhaps because you’ve been laid off – you do have the opportunity to file Chapter 7. With Chapter 13, you are almost always eligible, but it can be challenging if your debts run into the hundreds of thousands.

Choosing Chapter 7 or Chapter 13
Which form of bankruptcy should you choose? Sometimes the choice is made for you by your income: you make too much for Chapter 7 so you have to file Chapter 13. This can be challenging when you owe tens of thousands of dollars. On the other hand, with an income and a plan, you stand to protect all your assets and also save money.

Liquidation
Chapter 7 bankruptcy is a “liquidation” where your main debts are discharged and your assets are sold off to pay these debts. The challenge for filers is keeping property. Few lose a lot in Chapter 7, but it does happen. If you have a lot you may lose, such as a home, consider Chapter 13. However, if you’re faced with a huge medical and/or credit card debt, how good would it be to have that disappear? That’s what Chapter 7 can do.

Foreclosure
Finally, one of the biggest challenges any of us face is getting a home and keeping it. If you have a family, it may feel like a nightmare when you cannot pay your mortgage. The challenge here is to protect your home, and a Chapter 13 bankruptcy can do just that. First, you do have property exemptions, which cover about $10,000 for one person and $20,000 for a couple, but you can protect your home by law with a bankruptcy filing. If you have some income, you can start making affordable payments with a Chapter 13 debt repayment plan – keeping your home.

Filed under: Bankruptcy Information — Tags: Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Chapter 7 bankruptcy Atlanta, Georgia bankruptcy attorney, Georgia bankruptcy law, Georgia bankruptcy lawyer, improving credit score, Unsecured debt — jmalewitz @ 3:53 pm

Common Fears on Chapter 7 Bankruptcy for Georgia Residents

We on Georgia Debt Law hear many stories of Georgia residents and families getting much needed help from filing Chapter 7 bankruptcy. We also listen, and by listening we hear some very common fears related to specifically filing Chapter 7 bankruptcy. You might have heard some too. “The government will take all my stuff … I won’t be able to get a credit card for 10 years … I won’t be able to buy a home ever again …” and so on. This guide is an answer. It goes over some very common fears specifically related to filing Georgia Chapter 7 bankruptcy.

Your Credit Will Be Ruined
Your credit will not be ruined. Bankruptcy is a very common financial action. For Chapter 7 bankruptcy, yes, you are voiding many of your debts. Understandably this will affect your credit. A Chapter 7 filing shows up on your credit for 10 years. However, this does not ruin your credit. Georgia Debt Law goes over many ways you can rebuild your credit by taking some simple steps.

Everyone Will Know
You may be in some ways ashamed at having to file for bankruptcy, maybe even for Chapter 7. And then you may fear that everyone else will know. First, bankruptcy is filed by over 1 million individuals every year. That’s a lot of people. Second, you can only find out about a bankruptcy by going through court records. So yes, some credit companies, if they look, will know you filed bankruptcy. But not everyone will know you filed.

You’ll Lose Your Home
There is some basis for fact in this fear. The general point of filing Chapter 7 bankruptcy is to discharge debt; you have less protection for assets than you might have in a Chapter 13. Still, few lose anything when they file bankruptcy, especially their homes. If you plan it correctly, you can keep your home. If you are in danger of losing it, you have legal rights. You can’t just be thrown out of your home a day after filing bankruptcy. If you cannot pay on it, the automatic stay will protect you for several months from foreclosure and utility shutoff. If you can pay on it in some way, you can keep it.

New Bankruptcy Code Makes it Impossible to File
Yes, the changes to bankruptcy code in 2005 make it harder for some to file, mainly Chapter 7. The new code does not make it impossible for individuals or families to file. If you make more than the Georgia median income, which is 40,456 for one individual and goes up after that for couples and families, you are not eligible. Most are then eligible for Chapter 13.

Lawyers Will Take All Your Money
The idea that lawyers are inherently greedy is a common myth. Of course, not everyone believes it, but it has some reasons. Lawyers are not cheap. In bankruptcy, you are not being defended for a criminal act. You have debt. It’s important, but not a life and death situation. Therefore, lawyers charge some of the lowest legal rates in bankruptcy cases, even some very good ones. You are not filing because you have tens of thousands of dollars. A lawyer can charge you from $1,000 to $2,000 for a successful Chapter 7 bankruptcy discharge.

If you have some questions, contact an experienced Georgia lawyer today. He or she can relieve some of your concerns too.

Filed under: Bankruptcy Information — Tags: bankruptcy fears, bankruptcy myths, foreclosure process, Georgia bankruptcy, Georgia bankruptcy attorney, georgia bankruptcy court, Georgia bankruptcy law, Georgia bankruptcy lawyer, hiring a georgia bankruptcy attorney, improving credit score — jmalewitz @ 1:19 pm

Downfalls of Bankruptcy Alternatives

Bankruptcy is clearly not for everyone, but sometimes the alternatives to filing have too many downsides. Instead of dong nothing, working with debt counseling agencies, or stopping creditor harassment yourself, you should be aware of the benefits of filing Chapter 7 or Chapter 13 bankruptcy.

Advantages of Chapter 7
Chapter 7 bankruptcy is also not for everyone, but it’s your best option in certain cases. If your problem is high debts you simply cannot pay back, you can discharge most common debts. This includes the big 3: medical debt, credit card debt, and mortgage debt. Also, you can stop creditor harassment, negotiate with your trustee to keep certain assets, and get a fresh start.

Advantages of Chapter 13
Chapter 13 bankruptcy is used about 25% of the time, while Chapter 7 gets the majority at 75%. Why? This is because you don’t discharge debts with Chapter 13; you pay back all debts. However, you also get to keep all your possessions. Technically, you may lose your home via Chapter 7, while Chapter 13 can effectively stop a foreclosure. If you discharge mortgage debt with Chapter 7, you can lose the home, but with Chapter 13 you are allowed to make payments you can afford.

Now let’s go over the downfalls of the alternatives to filing bankruptcy.

Stop Creditor Harassment
There are laws in place where you can stop creditor harassment without filing bankruptcy. If you only want to stop the harassment, writing a letter to your creditors asking them to stop contacting you can stop the harassment. However, you are still liable for all these debts. The point is you stop the harassment, but you still have all these debts and may run into foreclosure, repossession, and credit problems.

Negotiate With Creditors
You can also work with creditors yourself. Some may be willing to renegotiate your payments. You may be able to sell some assets to pay them. If you have no income coming in, however, this just won’t work. If you cannot afford these debts, negotiating with creditors may be next to impossible. Chapter 7 is a better alternative.

Debt Repayment Plan
There are many agencies out there who can help you negotiate with creditors if you’re uncomfortable with negotiating. The problem again is you may not be able to negotiate at all; some creditors simply won’t respond. Other times, you won’t be able to afford the payments, even lowered.

Debt Counseling
This alternative to bankruptcy, specifically Chapter 13, has the most downfalls. Many go into debt counseling thinking it will solve their problems. It works much like Chapter 13 bankruptcy, in that you create a plan where you can pay off debts. The difference is, if you fail to make just one payment, your creditor can stop the plan. With Chapter 13, you are protected by law from such an event.

Bankruptcy sometimes sounds like a total life change. Yet in most cases you lose nothing. Yes, it stays on your credit report, sometimes you can handle creditors without it, but by law Chapter 7 and Chapter 13 bankruptcy protect you far more.

Filed under: Bankruptcy Information — Tags: Atlanta Bankruptcy Attorney, Atlanta Bankruptcy Lawyer, Bankruptcy, Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Foreclosure, Georgia bankruptcy, Georgia bankruptcy law, Georgia bankruptcy trustee, improving credit score, Liquidation — jmalewitz @ 12:34 pm

6 Tips for Atlanta Residents to Improve Credit Report Scores

What is a credit report? A credit report shows your financial history, as created by credit bureaus. If you’ve ever fallen into debt, filed bankruptcy,and/or lost your home in foreclosure, your credit report may look like a battlefield. No worries–you can improve it. And this guide shows you precisely how to do that.

1- Get Your Credit Report
How do you get your credit report? Simple. You can get it by going to the three major credit bureaus, who have websites at Equifax.com, Experian.com, and Transunion.com. This is where your credit score is created. You can expect your scores to reflect: your payment history, how much you owe, length of your credit history, types of credit used, and your new credit.

2-Improve Your Payment History
You can improve your credit score in a variety of ways. No matter how bad you think it is, there is always a solution to improving credit scores and rebuilding your life after bankruptcy, home foreclosure, or job loss. To improve your credit report, improve your payment history. This means paying bills on time, getting current on past due bills, contacting creditors if you think you’ll not be able to pay a bill on time, and if you run into trouble working with a non profit credit counselor (be thorough in researching them and making sure they’re legit).

3-Avoid Debts
One major problem people in debt face is high credit card balances. You want to keep these low. Why? They lower your scores, so keep them low and you can improve your score. Next, you want to avoid moving debt around; just pay it off. The more open balances you have the lower your score gets.

You just have to be logical when it comes to debts. Here again there is professional help, just as there is for home owners facing foreclosure or bankruptcy.

4-Time and Credit History
Time is on your side if you follow these tips, but it’s something you obviously cannot “rush.” However, what you can do is not opening multiple accounts in a short period. If you have little credit history, this could hurt you.

5-Managing Credit
There are many other ways your credit score can do now that you may be unaware of, such as searching for a single loan. If you search for a single loan, perhaps for a home, multiple queries can surprisingly hurt your credit score. Also, if you make many credit queries in quickly, that can sometimes lower your credit score. If you have to do either, do them in as short a window as possible.

6-Improve Credit, Avoid Debt, Delay Problems
There are many other ways you can improve your credit, but if you run into problems with debt on a regular basis, or if you are simply out of reach of paying back all your debt, you may want to consult with non-profit counselor. If things look bad, perhaps you fear a home foreclosure, you could contact a bankruptcy lawyer and see your options. Chapter 13 bankruptcy can be advantageous, including delaying any foreclosures for years. Chapter 7 bankruptcy can eliminate credit card debt. If you do want bankruptcy and a fresh start, hire a good bankruptcy lawyer, and when you’re done, work on rebuilding your credit with the above tips.

Filed under: Bankruptcy Information — Tags: after bankruptcy, Atlanta Bankruptcy Attorney, Atlanta Bankruptcy Lawyer, before bankruptcy, Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, delay foreclosure, fixing credit report, Foreclosure, Georgia bankruptcy, improving credit history, improving credit score — jmalewitz @ 12:22 pm

Cleaning up Your Credit Report in Georgia

What exactly is a credit report, why should you care, and how do you get one?

A credit report is a document compiled by credit bureaus which shows past financial history. This becomes important if you’ve filed bankruptcy in the past, want a new mortgage, or want to make a large purchase and need a loan.

The three major credit bureaus where you can get credit reports online are Equifax.com, Experian.com, and Transunion.com.

Credit bureaus mainly get data about you from creditors. You can also expect court records to be searched for lawsuits, judgments, and bankruptcies. There is also other information in a credit report, including things like your social security number, employment history, past and present addresses, current and former names, and more specifically you banking history (opened and closed accounts, amount of loans given, current balance, etc.).

For Georgia residents, the best way to clean up your credit report involves working with some credit agencies, being smart in the future with loans you take, and hiring professional counsel who can help you in case you see potential problems in the future. You can actually get all your credit reports for free if you contact annualcreditreport.com to get them; this is important because you need these in order to improve credit.

In some cases, you can ask for more than one credit report. If you are unemployed and looking for work, for example, you’re entitled to an additional copy. If not, you can pay a small fee to get your additional credit report.

Clean Up Errors in Your Credit Report
Go through your credit report and look for inconsistencies and problems you see immediately. Out-of-date and incorrect information are often the most obvious. For out-of-date info, you can actually get them taken off your credit report, and the same is the case with incorrect information. We’ll go over that more soon.

Out-of-date info on your credit report includes:
-Negative info that’s more than 7 years old, such as lawsuits and criminal records
-Bankruptcies reported more than 10 years after you were discharged

Incorrect information on your credit report may include:
-Wrong names, numbers, social security numbers, employment info or other personal information
-Bankruptcies which don’t state what form of bankruptcy (Chapter 7 or Chapter 13 bankruptcy usually)
-Bank accounts which are not yours, or lawsuits you had nothing to do with
-Incorrect late payment records
-Any account you closed that doesn’t say it was “closed by consumer”

Clean Up Credit Report
There are many way to clean up your credit report, but what can be difficult is removing incorrect information, if not recognizing it immediately. You can request removal of incorrect information, which is simple. Sometimes the credit bureau won’t agree with that, and you can appeal. In most cases, the incorrect info can be removed from your report by filing documents the credit bureau gives you.

Rebuilding Your Credit in Georgia
After you’ve cleaned up the report, and corrected mistakes, it’s time to get work on improving your credit score. It may take a few years, but once you start regularly paying bills on time, get a credit card and pay it on time, you can have more opportunities. If you’re goal is, for example, to buy a home, it may take 4-5 years before your credit score allows you to get a home and mortgage.

Filed under: Bankruptcy Information — Tags: Atlanta Bankruptcy Attorney, Atlanta Bankruptcy Lawyer, Bankruptcy, Credit card, credit card reform, Creditor, Debt, fixing credit report, Georgia bankruptcy, improving credit score, Secured loan, Unsecured debt — jmalewitz @ 2:00 pm

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