DebtStoppers USA Bankruptcy Blog

A recent Forbes article reports helps consumers figure out how to obtain a credit card, opining that lenders are being more strict with who gets one of their shiny pieces of plastic.

But according to creditcards.com, there are more than 400 million credit cards in circulation in the United States and industry experts believe that companies are sending out offers at record levels.

Many people believe that the amount of credit available in the United States has actually increased, which has led to a decline in the number of Chicago bankruptcies reported in 2011.

Typically, in times of tighter credit, more people are willing to consult with a Chicago bankruptcy lawyer and go through with the process than when more credit is available. That's simply because when more credit is available, people will take it, especially if they are in a financial bind.

But this isn't necessarily a good thing. When these credit companies extend offers to consumers, it's to make them money, not to actually help the consumer. These companies aren't designed to lend out money with zero return. That's why they pack in hidden fees that crop up when payments are late or if certain requirements aren't met.

Interest rates can spike at any time and the "perks" and "rewards" offered typically require huge amounts of spending so that even if a person gets the perks, they end up paying for it i the end. It's not really a perk, after all.

The Forbes article goes on to say that a 720 credit score used to be considered good, but the author believes that credit card companies are considering 750 an "excellent" score. The analysts in the article believe that credit card companies are being more conservative.

But that mainly applies to simply handing out premier interest rates. Anyone can get a credit card and fall into the traps set by card companies. Other news media have reported that there are record numbers of credit card offers being mailed out daily.

Some tips for consumers searching for a credit card:

Payment history is key
Experts believe that people who have a long history of paying their cards on time will likely be able to obtain new cards.

Credit length, diversity is important
Credit diversity means holding different types of loans -- car, home, credit card, store credit. Length of credit simply means showing that you can make payments for years.

Debt-to-credit ratio
Credit card companies don't like to see that a consumer uses one card exclusively and has little on others. They would prefer to see your debt stretched out.

Students who have never owned a credit card before and those under 21 have had difficulty obtaining credit cards since the passage of the CARD Act in 2009. Under the act, they must have co-signers unless they have enough assets or income to obtain a waiver.

Some who get rejected for cards might consider going to a bank and starting a checking account and later seeking a credit card through their bank. There are options, but consumers must be careful. While credit card companies seem to be showing some restraint as far as who they provide cards to, they still want to maximize their business and get as many cards out there as possible. The more cards, the more profit. And that means the more trouble for consumers.

Continue reading "Media Offers Advice On How To Get a Credit Card, But Not the Debt that Follows" »

Every month, just like in October, foreclosures increased throughout the Atlanta metro area. This time, they increased at a higher clip than usual.

Foreclosure in Atlanta and throughout the state has been a problem that has hampered local and state economies, made housing prices plummet and caused many homeowners heartache.

Yet bankruptcy, usually Chapter 13 bankruptcy in Atlanta, can help homeowners save their houses. Atlanta bankruptcy lawyers have been able to help many people save their houses through this process. By eliminating debt and setting up a payment plan for three to five years, people can hang on to their homes and still pay off the debt that is causing them so much stress.

With foreclosure notices constantly on the rise, the real estate market will not recover for years or perhaps decades. An increase in foreclosures means a steady decline in prices for houses. And as unemployment remains steady, this spells disaster for the economy.

Most analysts believe that major banks halted their foreclosure processes last fall in order to revisit how they could handle all these foreclosure cases -- millions nationwide -- without illegally signing fraudulent documents, using robo-signing practices and fabricating documents to support their foreclosure filings.

That's why 15,000 fewer foreclosure notices have been filed this year compared to last. But now that banks appear to have gotten that figured out, they are again starting to file hundreds of thousands of notices and nearly 11,000 in the Atlanta area alone, the newspaper reports.

Analysts with Equity Depot told the newspaper that the numbers show a large number of second and third foreclosure notices, meaning banks may be taking action against people who are furthest behind in payments. Another trend is that more foreclosure notices are being filed against people with prime mortgages, rather than sub-prime mortgages, which were made to people with greater credit risks.

Cobb County set a new high for the year in October with 1,333 notices sent out, while Douglas (410), Hall (332) and Rockdale (259) counties also experienced highs. DeKalb, Fulton and Gwinnett counties all hit more than 1,500 notices for the month.

There have been 102,094 notices filed in the metro Atlanta area this year compared to 117,437 at this time last year, the newspaper reports.

Some could take the latest statistic as a good sign, given that notices are slightly lower than they were last year, but considering banks severely halted their foreclosure filings for the better part of a year while states investigated them for robo-signing and illegal document filing and they're still close to last year's levels shows that they have more than made up for the time lost.

While it's true that banks appear to be going after the most delinquent borrowers first, many homeowners are at risk. And even people far behind in making payments can save their homes through bankruptcy. Filing for bankruptcy immediately stops foreclosure and ensures that creditors are shuffled to bankruptcy court as it stops them from contacting the homeowner.

Continue reading "Foreclosures On The Rise But Atlanta Bankruptcy Can Help" »

Our nation's economy and the world's economy has struggled to get recover after years of bank business that went largely unregulated.

After the collapse of the United States' real estate market, things have been slow to recover. After years of prosperity in the mid 2000s, times have quickly turned bleak as banks and other businesses began laying people off and cutting back in such a tough economy.

With housing prices plummeting and people losing their jobs, foreclosures have gone on the rise in Chicago and elsewhere throughout the country. At a time like this, bankruptcy in Chicago must be an option worth considering.

Homeowners are losing their jobs, which is forcing them to stop making monthly mortgage payments. After only a few missed payments, banks are calling and writing letters, urging homeowners to either pay up or get out. But without an income, Chicago bankruptcy lawyers know it is impossible to meet such demands.

Kiplinger recently reported that President Barack Obama's plan to help the housing market has done little to relieve the pressure. After promising that government-backed mortgage programs would help millions of families, the President's programs were largely unused by banks and did little to actually aid homeowners.

As Kiplinger reports, the President's new plan would target "underwater" borrowers -- people whose homes are worth less than what they're paying for them -- to help ease their burden. But the plan doesn't help in addressing the root problem that caused the real estate meltdown.

While foreclosures are the public face of the housing market crash, the underlying issue is what sinking home values have done to equity. Equity in houses is down $7 trillion, or 50 percent since the crash. As a result, many consumers have cut back on spending, which makes up 70 percent of economic activity nationwide.

With a glut of foreclosed homes on the market, it could take years or even decades before prices return to what they were pre-recession. Either way, it's likely that the problems will keep consumers wary of making such a big investment.

The President's initial plan was to help 3 to 4 million homeowners, but the number is less than 1 million. The new goal is to help just over 1 million underwater homeowners, but Kiplinger predicts this isn't possible without home prices rising.

It's obvious that these government-backed programs are being shunned by banks as they find it more profitable to go ahead with foreclosure rather than work with homeowners. But bankruptcy in Chicago is a way to prevent foreclosure without the banks' cooperation.

In bankruptcy, whether an owner has missed one payment or 10, the foreclosure process stops. As unsecured debt such as credit card bills and medical debt gets eliminated, the homeowner can come out of bankruptcy able to make payments on a house. And when the process is ongoing, homeowners can typically stay in their homes.

It's not always the case that a consumer will lose their house after the bankruptcy process is completed. In fact, in many cases they keep their home, get rid of the rest of their debt and can continue making payments.

Every case is different and discussing it with a skilled bankruptcy lawyer should be a homeowner's first priority if they are struggling with debt and are unable to make payments.

Continue reading "Chicago Bankruptcy Aids in Foreclosure Prevention Unlike Fed Plans" »

A recent Wall Street Journal article looks at deficiency judgments, which are court orders that banks can get to force homeowners to pay the difference between what the home sells for and what remains owed on the loan.

This is a terrifying prospect. A homeowner loses his or her job and is forced to stop making payments on a home they want to keep. The bank is unwilling to modify their mortgage, so they're stuck.

Without notice, some months later, they get a phone call or a letter. It's the bank telling them a judge signed off on a deficiency judgment against them. This is after the bank took back their house, sold it at auction for significantly less that what was owed, and now wants the difference in the loan paid to them.

This is happening with great frequency as banks are unable to cope with the losses from home loans gone bad nationwide. There are millions of homes in foreclosure and the losses for banks are staggering. But there is a solution -- bankruptcy in Chicago.

Under certain forms of bankruptcy, there are ways for people to hang on to their main house even if a vacation house is in foreclosure or has already been sold by the bank. Chapter 13 bankruptcy allows for people to make payments over a three to five year period in order to discharge all the money they owe. Other forms of bankruptcy allow all the debt to be removed without making payments.

Consult with an experienced Chicago bankruptcy lawyer if you find yourself in this position. Getting out of debt can be a monumental challenge and it's one that can't be tackled alone.

As lawyers have noted, banks have become more and more aggressive in seeking deficiency judgments. Rather than working with homeowners or cutting them some slack because of tough financial times, the number of deficiency judgments has actually spiked this year as foreclosures have increased. With real estate numbers slow to improve, analysts say it's likely that this strategy will continue to play out for banks who are seeking to get back as much money as they can after the market's collapse.

There are 40 states and the District of Columbia that allow lenders to sue borrowers for mortgage debt lingering after a foreclosure sale. Experts believe banks will use these laws to their advantage as their own companies continue to struggle financially with the rise of foreclosures nationwide. Most banks won't say why they choose to seek deficiency judgments against borrowers, but some say they do it when they suspect borrowers have stopped paying because of a loss of value, not because they can't afford payments.

But one strategy for these borrowers is to consider bankruptcy. If a consumer gets hit with a deficiency judgment, they can file for bankruptcy, which stops lenders from coming after them for that debt. By discharging that debt, the borrower can get away from a six-figure judgment hanging over their head.

Continue reading "Homes Can Be Foreclosed, But Banks Can Come After You For Difference Without Chicago Bankruptcy" »

A recent Forbes.com article lays out how a person could go about getting a credit card even when he or she has no credit established.

The article seems to be aimed at college students or immigrants who have never obtained credit before. But what it fails to reveal is that credit card companies have traps -- hidden fees, late payment fees, high interest rates and other built-in policies that can ensnare inexperienced consumers.

This can lead to debt problems that can be difficult to repair. Damaged credit in Chicago is a difficult thing to fix because after years of minimum payments and high interest rates, the amount of debt just keeps piling up and credit scores keep plummeting.

Chicago bankruptcy lawyers have seen how credit card companies through the years have hammered their customers with fees and penalties that lead them deeper and deeper into debt. Obviously, credit plays a large part in the nation's economy. Without it, people wouldn't be able to buy houses and cars, or start businesses. But it can also be very dangerous.

For many college students, having no credit is a starting spot to getting credit. They are getting by on minimal income and need to be able to qualify for renting apartments and making purchases that are more expensive than the cash in their bank accounts.

Credit card companies have hired smart marketing people who try to appeal to college students. They offer "perks" and can sometimes get universities and colleges to team up with them so that spending money gives them credits at book stores or campus restaurants. They try hard to appeal to college students, who don't understand the problems that can linger if credit card habits get out of hand.

Forbes offers some tips to college students who are looking to get their first credit card:

-Make sure the credit card actually reports credit. There are prepaid cards that are attractive to students who don't want to get trapped with credit damage, but they may not report credit, which don't help your credit score. Other cards charge fees, but will help a person establish credit.

-Some cards offer perks such as a small percentage of cash back for paying a bill on time, an incentive that can lead to improved credit scores.

-Getting a co-signer will also help your credit, but it puts the co-signer, sometimes a relative, on the hook if your mess-up. Your poor credit can affect their credit.

Credit cards can be helpful for college students and young consumers who want to try to build their credit, but if not harnessed, they can lead to poor credit in a hurry. Even a person who has spent years of building up strong credit scores can have those toppled when late fees and hidden fees start getting reported by the credit card companies to the credit agencies.

They must be used cautiously and consumers must do their homework when deciding which card to choose. Find out about the different types of fees, how much they are, when they're assessed, and what happens to interest rates if a payment is made late.

Continue reading "Even Mainstream Media Encourage Chicago Consumers to Get Tangled in Credit Cards" »

Even the most experienced business professionals are finding that securing a well-paying job is a challenge.

So college graduates, who have little experience, but a brand new degree and an excitement for getting into the workforce, are finding the current climate even more of a challenge.

Atlanta bankruptcy lawyers have followed the news as Georgia's economy lags and jobs are scarce. Foreclosures are up and people are finding it tough to get by.

That's why considering bankruptcy in Atlanta may be a good move for some people. It may not work for everyone, however. Consulting with an experienced lawyer is the right first step.

Knowing your financial situation, income level, current and expected debt and other issues is knowledge a lawyer should have after talking with the client about their financial situation. Sometimes, credit counseling or debt programs can help, but sometimes they can be a waste of time. For-profit programs can cost the consumer more money and do little to help.

And attempting to discharge debt on your own is a challenge. Credit card companies and other lenders rarely will sit down with a borrower and work with them.

According to bankruptcy laws, it takes a rare exception for college loans to be discharged. If a person can show that the loans are an "undue burden" or they are physically unable to work and earn a living, it's possible for the debts to be discharged.

In most cases, however, that's not going to happen. But that doesn't mean bankruptcy can't help. A person who files for bankruptcy can have the rest of their unsecured debts discharged, meaning credit card loans, medical bills and other types of debt can be eliminated.

This leaves the recent graduate able to make their loan payments. And, as the Associated Press reports, an underutilized federal program may also help.

The news story looks at the Income-Based Repayment program, which helps recent grads who have little or no income. Under the rules of the two-year-old program, people may be able to make few or no payments if they aren't earning a living.

Only 450,000 people are enrolled, though the government estimates 36 million people could qualify based on today's economy and the lack of available jobs.

The program allows people to pay back their debt over 25 years or 10 years if they are entering public service jobs. Eligibility is based on debt vs. income and the Department of Education has a calculator available on its web site.

But, there are drawbacks. First of all, only federal loans can be discharged, not loans from banks or Sallie Mae. Second, those enrolled must submit annual tax returns, so it's possible their payment plans will be recalculated, thus triggering higher payments.

There are higher interest rates for the longer payment program. The upside is that after the time period has elapsed, the remaining debt is discharged.

While President Barack Obama has said he wants to make the program more forgiving, the changes likely won't take place for several more years. It is a program that could work, depending on a person's situation. And it appears there's no reason a person couldn't enroll in that program and still use bankruptcy laws to their advantage.

Bankruptcy is guaranteed to discharge debts and help people get back on their feet, regardless of how much debt they have. There's a reason these laws were created to help consumers. They're needed and if you're struggling with debt they can benefit you.

Continue reading "Recent Grads Considering Atlanta Bankruptcy in Poor Economy" »

The Wall Street Journal recently published an article with tips on how to settle debts.

While the article has good information and ideas that could work for some people, only filing for bankruptcy in Atlanta will guarantee that debts be discharged forever.

Bankruptcy laws were created with the consumer in mind. Government officials realized that consumers could sometimes make big mistakes, but that they deserved a second chance. And given that companies and governments have a larger pool of money, the laws assume they can absorb a loss more than a family trying to put food on the table.

The same holds true today. Millions of people are forced to consider bankruptcy because of expensive medical bills, joblessness and predatory lending practices by credit card companies and banks who charge high interest rates and many fees to borrow money.

Atlanta bankruptcy lawyers have seen many people struggling with debt being saved by bankruptcy after they felt there was nowhere to turn. Carrying a lot of debt is a difficult habit to break, and creditors don't do a very good job of helping consumers who are trying to right the ship.

Here are some tips from the Wall Street Journal that suggest alternatives to bankruptcy. While the article does suggest bankruptcy is an option, this looks at ways to avoid bankruptcy. The article focuses on a debt settlement, which is easier said than done.

Before settling, look at other options
-Try to squeeze extra cash out of your budget
-Take a part-time job or try to sell things at auctions such as eBay
-Consult with a debt-management counselor

Build your case
-Gather financial documents to prove you can't afford payments
-Show that you've been laid off or endured medical bills
-Save the debt-settlement offers made by creditors for comparison

Strategize
-If creditors know you're willing to settle, go after the biggest fish in the pond first
-Focus on payments that are affordable
-Consider tax implications -- debt forgiven above $600 is reportable as income

What you shouldn't do
-Don't lie or leave out important information
-Don't avoid the problem; address it
-Don't skip payments on purpose
-Don't trust a debt-settlement scam artist

While these are all good tips, this assumes that creditors are willing to work with consumers. First of all, they can usually make more money by seeking wage garnishments or repossessing your things than they can in a debt settlement, especially if there are a dozen other lenders lined up with their palms open.

Filing for bankruptcy is the only thing that truly scares creditors and gets them to work with you. Going to a creditor on your own is a big job and should be left to experts. But filing for bankruptcy will provide instant relief rather than mere possible debt relief.

Even most credit counseling agencies will cost debtors something and companies that guarantee they will help for an up-front fee are usually scams. Bankruptcy immediately stops creditors from calling and gives you the breathing room to address your finances.

Continue reading "Debt Settlement May Be Ideal, But Difficult While Atlanta Bankruptcy Works" »

As the Atlanta Journal-Constitution reports, there is little good news to talk about in the housing market in the Atlanta metro area.

It reported that foreclosure notices in October were up from September. This is likely because banks are again ramping up foreclosure cases after taking nearly a year break when unethical and illegal banking procedures were discovered.

Atlanta's economy has faltered along with the rest of the nation. Many unemployed people are missing mortgage payments, sending scores of houses into foreclosure in Atlanta. But one guaranteed way to stop foreclosure is by considering bankruptcy in Atlanta.

Atlanta bankruptcy lawyers have seen how foreclosures have caused house values to plummet throughout the area. For people who are able to afford to stay in their houses and plan to stay forever, this isn't a problem because it's likely that years down the road the values will be restored to pre-recession levels.

But for people who want to move, they are stuck. For homeowners who have lost their jobs, they have no way of paying hundreds to thousands of dollars each month for a house that is worth less than the amount owed.

And when one payment is missed, the letters start arriving in the mailbox. Automated calls come once, twice or three times a day. Homeowners may get a call from a customer service representative asking if they want to make a payment.

After the second payment is missed, they tack on late fees, saying the homeowner owes them more money on top of the missed payments. Then, they start suggesting a loan modification program, which they rarely will agree to comply with.

In the Atlanta metro area, there were nearly 9,000 foreclosure notices in October, a jump from about 7,600 in September, the newspaper reports. While there have been month-to-month jumps, foreclosure notices appear to be on the rise.

After nearly a year of reviewing their practices, banks are again moving forward with foreclosure notices now that they believe they have cleared out their unethical robo-signing and fake document practices.

All of this can be avoided, however. By filing for bankruptcy, regardless of the stage of foreclosure, the foreclosure will stop. If you are one payment behind and don't believe you can make any further payments or if your house is close to being sold at auction, bankruptcy stops the process.

Once you enter bankruptcy, you likely will be able to stay in your home during the process and may be able to work out a way to stay in it even after the process is completed. For those who are struggling to make payments -- as many in the Atlanta area are -- bankruptcy may be a smart option.

If you are in this situation, set up a free consultation today to discuss your options. It may be the best choice you make and it could save your home.

Continue reading "Atlanta Forecloures on the Rise Again, But Bankruptcy Can Stop Them" »

A recent Fortune Magazine article looked at how underemployment has turned into an advantageous thing for many jobless Americans.

While finding any work right now is a good thing, consumers who are jobless and struggling with debt may consider filing for bankruptcy in Chicago while taking on a part-time job.

If you are struggling to find work and the bills are piling up, you're behind on payments, interest rates are rising and credit card fees are keeping you down, consulting with an experienced Chicago bankruptcy lawyer may be a good option for you.

Under bankruptcy laws, people who have no income or only slight income can qualify under Chapter 7 bankruptcy, where they are able to clear out all of their debt by going through the bankruptcy process.

In most cases under Chapter 7 bankruptcy in Chicago, a consumer doesn't have to lose any assets in order to qualify and reap the benefits of this bankruptcy law. This is the most commonly filed form of bankruptcy because it is a way for consumers to discharge all their debts without paying anything back.

Chapter 13 bankruptcy, however, is considered the wage earners' form of bankruptcy. This is for people who make enough money to be just out of the reach of Chapter 7 bankruptcy.

They may have large assets, such as a house and vehicles, that they want to keep and not be forced to give up in a bankruptcy proceeding to pay off creditors. They can still get rid of most of their debt through this form of bankruptcy.

Instead of having the debt discharged outright, they must set up a payment plan over 3 to 5 years. After those payments are made -- assuming no late payments -- the remaining debt is discharged.

This is where the article about underemployment comes in. Underemployment is defined as when a person who is overqualified to do a job does it anyway just to make some money, or if they work part-time jobs in order to work their way up to a full-time job.

The Fortune Magazine article suggests that because unemployment is high and jobs are scarce that people consider underemployment as a way to get back on their feet financially.

A recent query by a columnist found that using temporary work can be a stepping stone to a permanent job. This could be the first step in learning a new skill set and work your way into a new career field. Some people have considered taking college classes to learn a new skill.

The worst thing a person can do is simply give up, the report points out. Rather than stopping their search for a well-paying job, they may take a detour and still get to where they want to be.

Bankruptcy is a strong option for certain people in this poor economy. If you are in a position where you were previously making good money but had to take a lower-paying job because of layoffs, this may be a good time to consider bankruptcy in Chicago. With a lower annual salary, you may qualify for Chapter 7 bankruptcy and be able to discharge your debts and keep your assets.

Continue reading "Being Underemployed, Coupled With Chicago Bankruptcy, May Make For a Brighter Future" »

A recent article in U.S. News & World report surmises that women should manage their own money, given that retirement isn't typically as cozy as their male counterparts.

The article points out that lower pay over their lifetime and a longer lifespan are reasons why women should take control of their finances in an effort to ensure they have enough money to survive after working age.

Combine a poor economy, high unemployment and mounting debt for some to be the incentives they need to get their financial house in order. For women struggling to pay back loans and get by on a lower salary, bankruptcy in Atlanta will eliminate the debt and allow them to move forward with a better plan to avoid staggering debt in the future.

Atlanta bankruptcy lawyers have seen many consumers who are widowed or who are divorced later in life and are left in shambles, with outstanding debts carrying them down. Rather than live by making minimum payments and being buried in loans and credit card bills, it can be refreshing to put the debt behind you and move on with life without dealing with the debt on a daily basis.

Filing for bankruptcy stops annoying automated calls from banks and constant letters from lenders complaining that payments are late. You don't have to deal with the embarrassment of having employers ask why they are being contacted about wage garnishments and other frustrations.

In the U.S. News & World report article, the author suggests that older women are in a tough spot financially. A Government Accountability Office report states that 12 percent of women over 65 are living in poverty, compared with 7 percent of men. For those who are divorced or widowed, the numbers are 21 and 15 percent, respectively.

Because of longer life, there are expensive expenses that crop up later in life, such as nursing homes or assisted living facilities that many women must consider if they are unable to take care of themselves. But here are some strategies to consider:

Save up:
Social Security, a pension or 401(k) plan and individual savings should be a three-pronged plan for storing up money to get you through the retirement years.

Start early:
Don't wait until the middle of your life to save. If you save starting in your 20s, you can store up a nice amount of money by the time you retire.

Manage your money well:
In marriages, finances are typically handled by one spouse, but since the woman is expected to live longer, it would be smart for her to hone her skills now.

Consider an IRA for the couple:
Jobless spouses can still contribute to a retirement account. In a divorce or death, the surviving spouse is typically entitled to a pension, but rules and circumstances can dictate that amount changes.

Overestimate how much you'll need to retire:
Between longer life and inflation, it's best to contribute more now and assume you'll need more money in the future to live comfortably.

Manage your own money:
Studies show that couples who split financial duties -- such as one handling day-to-day bills and the other looking at investment opportunities -- work out better than those who let one spouse do everything.

Continue reading "Women Challenged With Finances, Debt Should Consider Atlanta Bankruptcy" »

A recent article out of St. Louis looks at the pros, cons and differences in the two types of bankruptcies. Anyone filing for Chapter 7 bankruptcy in Atlanta or Chapter 13 bankruptcy in Atlanta should learn all they can about the process, then consult with an attorney.

As we previously reported on the Atlanta Bankruptcy Attorney Blog, more and more people are considering Chapter 13 bankruptcy, though it's easily the least popular of the two choices.

Chapter 13 bankruptcy, Atlanta bankruptcy lawyers will tell you, is designed for people who are earning a living or have some form of income, but who are still overwhelmed with debt. This form of bankruptcy is written for consumers who want to keep their house, cars and other assets and not risk them being liquidated to pay for the debt that is owed.

Under Chapter 13, a person can keep his or her assets, but must adhere to monthly payments, typically over a 3- to 5-year period. After those payments are made, which result in the consumer paying back less than what is owed, the remaining debt is set aside.

Chapter 7 bankruptcy, however, is designed for those without a steady income, but who have debt that they want to eliminate. This is the most popular and most commonly considered form of bankruptcy.

In Chaper 7, a consumer usually has very little income, typically from job loss, and has been hit hard with other misfortunes, such as huge medical bills and large loan fees.

In this form of bankruptcy, the debtor is allowed to discharge all unsecured debts, such as credit card bills and medical bills, without having to pay anything back. There are times when a person under Chapter 7 may have to give up some assets so they can be sold to pay back part of the debt, but that depends on the individual situation. In many cases, a person can keep his or her home, vehicles and other significant assets and still qualify for Chapter 7.

As the article lays out, there are considerations for both forms of bankruptcy. Qualifying for one type over the other depends on income levels, the type of debt, and how much is owed.

Declaring bankruptcy is an important decision for a consumer, but it is not one to take lightly. Whether you are considering Chapter 13 or Chapter 7, there are limits on how often a consumer may file for bankruptcy, so the choice must come after strong consideration of all the options.

That's why seeking out an experienced Chicago bankruptcy lawyer is important -- someone who has spent years helping people regain financial freedom.

Whether working or recently unemployed, debt can attack anybody. And rather than deal with creditors making constant harassing calls or dealing with possible wage garnishments, filing for bankruptcy will get creditors off your back and get you back on your feet.

Continue reading "Chapter 7 Bankruptcy in Atlanta vs. Chapter 13 Bankruptcy in Atlanta; What Works for You?" »

The Illinois case of two brothers charged with bankruptcy fraud shows the dangers of not following the complex rules of the court. This potential for fraud could be equally tempting for someone filing for Chapter 7 bankruptcy in Chicago.

In United States v. Persfull, two brothers were sentenced to 30 and 39 months in prison, respectively, for lying to a bankruptcy trustee.

This case highlights just how important it is to communicate openly with your Chicago bankruptcy lawyer in a bankruptcy case. While bankruptcy allows consumers to reap the benefits of having debts discharged, there are specific rules that must be followed. It is a complex process that must be handled by a skilled lawyer.

Because bankruptcy is a federal process, bankruptcy fraud is a federal offense, punishable by five years in prison, a fine or both.

According to U.S. Code Title 18, Chapter 9, Section 157, bankruptcy fraud occurs when someone files a fraudulent bankruptcy petition, files documents in a bankruptcy case that are fraudulent, or makes false or fraudulent representations in a bankruptcy case.

In Persfull, one brother, from Poplar Grove, filed for bankruptcy in 2003. Because his mother was ill and possibly close to dying, the bankruptcy trustee asked if the one brother would be getting an inheritance from his mom if she died. The trustee told him that if he did acquire any assets, that he was required to report it to the court.

On the day his debts were discharged through bankruptcy, his mother died, leaving him and his brother, from Rockford, with equal shares of her estate. The brother filing bankruptcy signed a disclaimer of his interest, but never told the bankruptcy trustee about the inheritance.

More than a year later, the trustee discovered that the man had inherited property from his mother's estate and saw that he and his brother had conducted a series of transactions. The U.S. Attorney's Office began investigating and eventually filed criminal charges.

According to court documents, the brother filing for bankruptcy had received two loans from his brother, one that allowed him to retire the mortgage on his primary residence and another that allowed him to buy a car and put money into a stock trading account.

He said he assumed they were just loans from his brother and had nothing to do with his inheritance. At trial and on appeal, the brothers claimed they were not attempting to defraud the government and their creditors, but rather were simply acting on brotherly love.

But they were convicted and sentenced to prison and on appeal, a court ruled that they were, in fact, guilty of bankruptcy fraud.

If you find yourself filing for bankruptcy, we urge you to be honest and keep an open line of communication with your Chicago bankruptcy lawyer. A skilled lawyer will help you not only avoid these serious charges, but also maximize the amount of debt you can eliminate.

Continue reading "Chicago Bankruptcy Case United States v. Persfull Shows Dangers of Fraud" »

Many people are looking for jobs. As of October, the Atlanta Bankruptcy Attorney Blog reported, the jobless rate was 10.4 percent in September.

Unemployment is one of the top causes for bankruptcy in Atlanta, as people simply can't afford to make their monthly mortgage payment if they don't have a job. Sadly, banks are unwilling to help even the most downtrodden homeowners.

Instead, banks would rather let a house go into foreclosure in Atlanta rather than work with a homeowner through a loan modification or other option to keep a person in their house. Atlanta bankruptcy lawyers have seen many people desperate for help, looking for answers despite not knowing where to turn.

Those facing tough times should consider how filing for bankruptcy can help a person's financial outlook and, in turn, their job prospects. No one would want to find a job after months of searching only to have their employer begin getting calls from creditors or seeking to garnish wages.

That can be embarrassing and get a person out onto the wrong foot with a new job. That's not the best first impression to make. In other cases, an employer may check a prosepective employee's credit report -- where bad debt can be a red flag. If you are seeking a job while dealing with poor credit -- or have outstanding loans that you are behind on -- filing for bankruptcy could put you in a good position moving forward toward a brighter financial future.

Eliminating those debts when you are unemployed can allow you to start life anew when you settle down at a new job. If those debts are still active when you get a new job, that would allow creditors to begin the pursuit all over again. Bankruptcy in Atlanta can end the frustration.

And, to assist with the job search, here are some tips to staying relevant in a tough job economy, courtesy of kiplinger.com:

What are your career goals?
Whether you're a recent graduate or long-time worker, you should make sure you have a clear goal in mind for your career. You may be asked by potential employers, so make sure you have it straight yourself. This could include seeking an advanced degree.

Be seen online
Whether creating a website or social media account, making sure you are up on current trends and stay connected with resume web sites.

Look at where you have a chance to get a job
Survey the landscape and try to get an idea of what the current market is at least once a year. Keep up on local business news and try to identify where you think you fit.

Identify strengths
Know your value. Whether changing companies or staying where you are -- or if you are looking to break into a new field -- know what the typical salary range is.

Learn a new skill set
Being a team-player with a range of abilities is attractive to employers. Having one skill in an ever-changing world may not get it done. Do a web seminar or attend a class to get some new ideas and meet some people.

Network
The old adage it's not what you know it's who you know is as important as ever these days. With so many people seeking jobs, it's tough to stand out. Having an in is a big step in that direction.

Continue reading "Atlanta Bankruptcy Can Help If You're a Job Seeker" »

It used to be that consumers had to watch out for frauds who wanted to steal their money by trying to scam them by letter or phone. Nowadays, consumers must be even more vigilant, what with the ever evolving digital world of mobile banking and other money related online transactions.

A recent ABC News article details how cybercriminals are using commonly used programs and websites like Facebook to steal money from consumers.

Some victims of cybercrime in Illinois have considered filing for bankruptcy in Chicago. These con games and bogus schemes strip people of their security -- and money -- sending them spiraling into a financial mess.

Even if a person is a victim of cybercrime, it can take a long time for him or her to recover. An experienced bankruptcy lawyer in Chicago can work with troubled consumers to ensure they evaluate all options before filing for bankruptcy.

Cybercriminals are becoming increasingly inventive on how to steal from consumers. While that may seem like a compliment to those committing illegal acts, it is a word of warning for everyone to do a better job of securing their funds.

The ABC News article states that hackers are using text messages and emails to obtain a person's phone number. They then plot a scheme whereby they assess and attempt to collect small fees from those stolen phone numbers, which can go unnoticed by the phone's owner.

Gone are the days when a thief would need a person's credit card number or identification to steal from them. They can now use malware and viruses to steal right from underneath a user's nose.

For those who use online sites to store credit cards, hackers can access that information, cost users and the websites big bucks if they pluck a few at a time. Consumers may not notice or they may be complacent enough not to go through customer service to fix it if the loss is small.

Hackers will use video or web links with outrageous headlines to try to get people to click, which can then lead them to the information they need to begin the hacking process. Android users, whose marketplace is more open than Apple users, may be at a heightened risk of hacking because people can create realistic-looking applications that are actually viruses.

To stay safe, follow these tips:

• Check to see what authorizations you are giving to a website, Facebook program or other online process.


• Don't bank online except through secure, official sites.


• Check phone bills regularly.


• Don't download applications from unknown sources.

Being a victim of cybercrime can send your finances into ruin. You may want to consider bankruptcy in Chicago to eliminate debts and get you back on your feet. Bankruptcy helps many people, but it isn't right for everyone. Consult with an experienced bankruptcy attorney to see if it may be the solution for you.

Continue reading "Cybercrime Can Lead Consumers into Chicago Bankruptcy" »

Even before Halloween, there were Thanksgiving decorations and now there are Christmas and December holiday sales being pitched, some seven weeks out.

It's shopping season.

Sadly, however, all this spending will thrust many Americans into debt in Atlanta because of the predatory actions of credit card companies.

Atlanta bankruptcy lawyers know that high spending, holiday shopping and credit cards are a bad combination. Consumers believe they can simply pay the debt off at a later date.

But what happens if they lose their job at the beginning of January? This economy isn't exactly stable. People are losing their houses, their jobs and their income. There's always the possibility of a major medical issue or high hospital bills.

These are all variables that consumers must consider when they plan out their shopping this winter. And stores are already gearing up in anticipation of the holiday season.

CNNMoney is reporting that Wal-Mart is planning on leaking its own Black Friday deals to shoppers who sign up on their Facebook page or on the web site. The giant retailer typically provides its Black Friday deals to shoppers the week of Thanksgiving, but is starting even earlier this year.

Not to be outdone, electronics retailer Best Buy has announced it will open at midnight on Thanksgiving to ensure it capitalizes on the shopping madness. Some stores will show movies starting at 9 p.m. Thanksgiving to make sure they get as much business as possible.

CNNMoney reports that the store will give free shipping on purchases directly from its website and will give online shoppers a chance to win gift cards throughout the day through its social media pages.

And while October retail numbers were disappointing in the industry, the National Retail Federation is estimating that sales for 2011 will reach $465.6 billion, a 2.8 percent increase from 2010, ABC News reports. That signals a big holiday spending spree by Americans.

All this spending may be great for the economy, but it can be treacherous for consumers. By spending more than they can afford, consumers put themselves in a tough position.

For one, it adds to their credit card debt. But more importantly, it puts credit card companies in the driver's seat. When they know you have thousands or tens of thousands of dollars on your credit cards, they control you. They can kick in hidden fees, hike interest rates and make life difficult.

When a consumer stops paying on their card, the credit card companies can threaten wage garnishments, constantly call and ask for payments, send letters, e-mails and even contact employers or associates. Being buried in debt over holiday spending is not worth it.

Bankruptcy can clear these problems away, however. By filing for bankruptcy, the creditor harassment ends. They aren't allowed to contact you and their threats must cease.

For a consumer who has been trapped by these predatory practices, bankruptcy in Atlanta will allow them to discharge their debts and move on with life without the burden of owing that much money. Consumers can then put together a plan to ensure this doesn't happen again in the future.

Continue reading "Holiday Spending Will Spur Credit Card Debt, Bankruptcy in Chicago" »