DebtStoppers USA Bankruptcy Blog

Usually employment and the housing market follow one another. Not in Atlanta, however.

The good news is that, after increasing between 2007 and 2010, Atlanta unemployment is finally starting to ease. The rate has been falling steadily for seven months and has decreased nearly a full percentage point - to 9 percent - over the past year, according to the Atlanta Journal-Constitution.

Typically an increase in employment would be accompanied by an increase in housing prices. Yet the average sales price of an Atlanta area home was down 2.1 percent since the start of 2012.

Atlanta home values are currently at the lowest level since 1997. Meanwhile, market analysts are predicting values will continue to decrease this year.

As was recently reported in our Atlanta Bankruptcy Attorney Blog, banks have finally gotten back to processing foreclosures now that a settlement has been reached between U.S. states and the nation's five largest lenders. In metro Atlanta, foreclosed properties make up at least one-third of home sales.

Just because consumers have more money in their pockets doesn't mean they'll immediately be able to afford pricey mortgage payments.

Experts predict that, when the housing market does start to recover, the process will be slow. With damaged credit, uneven job histories, and little in the way of savings, most consumers will be hesitant to move into the home buying market.

Meanwhile, those who already have homes are still struggling to keep them.
Often times, it's credit card debt - not house payments - that makes paying the bills most difficult. For underwater borrowers who are delinquent or at risk of becoming delinquent, Atlanta bankruptcy can be a saving grace.

Those with steady incomes may qualify for Chapter 13 bankruptcy, which provides the freedom to prevent or stop foreclosure and reorganize many types of debt into a single repayment plan.

With the house protected and debt under control, homeowners can begin rebuilding credit and regaining control over finances.

The job market in Atlanta is finally breathing a sigh of relief. With bankruptcy, Atlanta homeowners may be able to do the same.

Continue reading "As Housing Prices Stay Low Despite Increase in Jobs, Atlanta Bankruptcy Remains an Option for Consumers" »

When it's a challenge for the most seasoned business professionals to land a well-paying job, you can only imagine how difficult it is for today's recent college graduates.

Gone are the days when a four-year education equaled job security. More than a shiny new degree or passion for one's particular field, employers are looking for solid work experience.

Tennessee bankruptcy lawyers have seen an increasing number of well-educated young people struggling in today's economy. Foreclosures are on the rise in Tennessee neighborhoods, and so is unemployment. As a result, many recent college grads quickly end up over their heads with debt.

In many cases, considering bankruptcy in Tennessee may be a smart idea.
That said, bankruptcy doesn't work for everyone. That's why consulting with an experienced bankruptcy lawyer should be your first move if you're experiencing debt trouble.

Bankruptcy's effectiveness depends on factors that include income level, types of debt, amount of current and expected debt, and your personal situation. A bankruptcy lawyer can evaluate this information to determine your best course of action.

Perhaps the most appealing aspect of bankruptcy is that it was designed to help the consumer. Nonprofit credit card counseling programs may offer some guidance, but they do nothing to legally lower debt. For-profit programs often make the problem worse by requiring substantial fees.

Debt settlement companies also cost money and may make your credit worse by recommending that you stop paying your debts. The truth is, getting a lender to sit down with you and negotiate a repayment plan is not likely to happen.

Student loans are a difficult debt burden to unload. In fact, the only way to discharge student debts is to prove you have an "undue burden" or are otherwise physically unable to work due to injury or illness. But that's not how bankruptcy works.

What bankruptcy can do is relieve pressure from unsecured debts - i.e., your credit card balance, medical bills, and other types of loans. Many young Tennessee bankruptcy attorney clients have high unsecured debt because student loans and car payments have left them with little cash leftover to pay other bills. Filing for bankruptcy can free up money for your loan payments, making the rest of your bills more affordable.

If you're unemployed or underemployed, an underutilized two-year-old federal provision known as the Income-Based Repayment program may also help, according to the Associated Press.

Aimed at grads with little or no income that are stuck paying off federal loans, the program lets enrollees pay back debt over either 10 or 25 years if they take a public service job. Eligibility can be determined with a debt vs. income calculator on the Department of Education's website.

There are some cons, however. If your student loans came from a bank, not the Fed, you're out of luck. Also, it's possible that repayment plans can be recalculated based on your annual tax returns - perhaps resulting in higher payments. Selecting the 25-year repayment option will also result in higher interest rates, though remaining debt will eventually be discharged.

Continue reading "Recent Grads Considering Tennessee Bankruptcy Amid High Unemployment and Poor Economy" »

Being young doesn't always mean being carefree - especially in today's economic climate.

With college tuition fees and the cost-of-living rising steadily, young adults today are suffering from more financial pressure than they have in generations. Couple these costs with the fact that most recent college grads are faced with a sluggish and brutally competitive job market, and you get a battle that feels like it just can't be won.

As a result, say Tennessee bankruptcy lawyers, many people in their 20s are starting out their adult lives with the burden of debt.

Credit card companies routinely push their products on college students who can't afford them. Meanwhile, young folks can't really rely on their parents for guidance and advice because adults of all ages are suffering from the same problem: spending more than we earn with the help of credit cards, then getting stuck with growing debt thanks to high interest rates and hidden fees.

Yet there's a solution that many young people overlook: filing for bankruptcy. Young adults often have a negative perception of bankruptcy because it seems extreme - and they may have heard it can't eliminate college loan debt. While it's true that bankruptcy can't make your school loans disappear, it does have the power to wipe out unsecured debt like your credit card balance.

For most young people, credit card debt is a problem that only gets bigger. Without a well-paying job, you may only be able to make minimum payments. Without years of responsible credit experience to your name, you may only qualify for high interest rates. The combination of low payments and high rates leads to a balance that grows out of control. Before long, you've got debt collection companies calling and wages being garnished from your already-too-small paycheck.

By filing for bankruptcy in Tennessee, many clients are finally able to pay more than the minimum payment on credit cards, make on-time payments, and get a handle on debt. With the financial burden lifted from your shoulders, you can start worrying about what really matters: finding that well-paying job and moving on with your life.

Never has there been such a significant gap between the earnings of the young and old, according to a recent story on MSNBC.com. Adults over 65 enjoyed a median net worth of just under $180,000 in 2009 - an increase of 42% since 1984. Meanwhile, people under the age of 35 had a net worth of $3,662. That's a decrease of 68%.

Part of the discrepancy is due to home ownership. Since the majority of older adults purchased a home before 1986, the gains received during the real estate boom in the 1990s offset many of the losses we've seen since. Young adults, on the other hand, either purchased at the peak of the market - leaving many struggling with high payments and little equity or, worse, a credit-wrecking foreclosure - or have yet to buy a home.

While all ages are suffering from the poor job market, older adults are more likely to have an established career and reputation.

Life isn't always fair when it comes to finances. But if unmanageable debt is holding you back, you don't have to put up with it. Tennessee bankruptcy is one tool that can help you make a change.

Continue reading "More Young Adults Struggle with Debt in Tennessee Compared to Older Consumers" »

Prolonged periods of financial struggle are taking a toll on the psychological health of many Chicago families - kids included.

A recent Chicago Sun-Times article examines the effects of long-term unemployment and foreclosure on children. Currently, unemployment rate in Chicago is hovering above 9% and more than 138,000 homes in the Chicago metro area have gone into foreclosure since the recession began - that's one in every 27 houses.

While all age groups can suffer from financial distress, studies are showing that uncertainty and stress can affect the behavior of kids in school and, later in their lives, in the workplace. Children may become withdrawn, act out in class or at home, or experience depression. Kids with a father who lost a job were more likely be suspended or expelled from school, while children with low-income mothers out of work were 40% more likely to exhibit problem behavior.

As parents, we can't control the economy for our kids - but we do have some control over how we react to economic changes. Maintaining consistency is key, say experts. A Chicago bankruptcy filing may be able to help.

If you've lost a major source of income or are drowning in debt, Chapter 13 bankruptcy can protect your home from foreclosure and help you get back on track with payments. Shielding your kids from the upheaval of losing a home, finding another place to live, and moving to a new location can go a long way toward making this tough time more manageable. Meanwhile, with the burden of the mortgage out of the way, it will be easier to focus on managing the credit card debt that often makes house payments so difficult.

If you've been out of work for an extended period of time, Chapter 7 bankruptcy may be able to eliminate your debts in entirety - in many cases, while also allowing you to keep assets like your home - so that you can devote more time to finding work and less time battling bill collectors.

In a recent blog post, our Chicago bankruptcy attorneys looked at how bankruptcy can allow enough financial breathing room for the unemployed to take on part-time jobs, which are more readily available, as a stepping stone to full-time employment. Look at it as a fresh start for you and your family.

Meanwhile, an article by the Family Education Network offers up some tips on how to discuss job loss with children.

Be Honest - To an Extent
Often times, uncertainty is even scarier than reality. Be upfront about your job loss. You don't have to give your kids the specific details of your finances, but be open about what changes they can expect. That said, don't speculate out loud about unknowns like foreclosure, which could just leave them more worried. Make sure your kids know that whatever happens, you'll get through it together.

Money Lessons
If your child wants to go to the mall or get the latest electronic gadget, this can be a good opportunity to talk about restraint. You may want to mention that things have changed, and you won't be able to afford everything that was possible before. It's important to stick together, and that means saving money together.

Stick to a Routine
Whether it's sitting down to dinner at the same time every day or enjoying a favorite family activity on the weekend, find ways to spend quality time with your kids. Unemployment is not an ideal situation, but maintaining a routine and making sure your children feel loved will help them hold onto some security when many things around them are changing.

Take Care of Yourself
Alcohol abuse, depression, and domestic violence can be an unfortunate side effect of unemployment and other financial struggles. It's often these issues, not the lack of money, that impact kids most. Take care of yourself so that you can take care of your kids. If you need help, ask. Many counties offer no-cost or low-cost family counseling services.

Continue reading "When Tough Economy Takes Toll on Psychological Health, Chicago Bankruptcy May Help" »

It's a tough time for young adults in this country.

They have dealt with increasing costs for higher education on top of cost-of-living expenses that never go down. They come out of college after earning a degree over four to five years and are thrust into a job market that is the worst in decades.

And so many are becoming adults and starting their lives saddled with debt. Many college students live off credit cards. They get little guidance from their parents or other people of influence who can teach them the dangers of overspending and relying on credit cards, which have high interest rates and hidden fees, especially for people without credit.

One solution to the problem is filing for bankruptcy in Chicago. While bankruptcy can't wipe out college loan debt in most cases, it can eliminate other unsecured debt that is causing students who have only managed to find low-paying jobs to pay the minimum on their cards.

Even if bankruptcy seems like an extreme option, making minimum payments, missing payments and carrying tens of thousands of dollars in debt while fending off creditor calls and wage garnishment threats is no way to live. If you are having debt problems after having just gotten out of college, consult with an experienced Chicago bankruptcy lawyer before making any other decisions.

A recent MSNBC.com article looks at the disparity between young people and older people in America today, concluding that the Great Recession made the gap between old and young much wider than it had been previously.

The recession caused adults older than 65 to enjoy large financial gains, while those under 35 are mired in losses. While it has historically been found that older Americans have more money than younger Americans, the gap has grown in recent years.

Statistical analysis has shown that those 65 or older had a median net worth of $179,494 in 2009, up 42 percent from 1984. In 2009, households headed by those under 35 had a median net worth of just $3,662. That's down 68 percent in the same time period.

The housing market collapse hit younger Americans worse than their older counterparts. Half of people 65 and older who own houses bought them before 1986, which allowed them to ride big gains in home equity during the 1990s. About two out of three have paid off their mortgages.

Younger adults bought into the housing market recently only to see it collapse and then be stuck with high payments on houses that aren't worth what they're paying. Either that or they walked away and took hits on their credit history. They also have little equity in their houses.

The poor job market has also hit younger people hard. Workers under 35 are finding a difficult time finding a job, while older workers have been in the workforce for a long time and are holding on to steady jobs.

Continue reading "Young Adults Hit With Debt in Chicago Harder Compared to Older People" »

Recently released data suggests that more than 120,000 jobs were added in November, which lowered the unemployment rate to 8.6 percent, CNNMoney reports.

This is certainly encouraging news. Our Chicago bankruptcy lawyers hope that many of the seasonal workers who were hired in retail and by companies producing consumer goods can hang on to those jobs as we get into 2012.

But for many others, jobs have been scarce. Many people have spent months or even years attempting to get a steady income. For millions of Americans, unemployment benefits have been what they live on. But whether a person is newly employed or still struggling to find work, it's likely that credit has been a crutch that is close to breaking.

Without steady income, people have relied on loans and credit cards to get by. This is a disaster waiting to happen. If the consumer has no income, they are likely getting bombarded with calls, e-mails and letters harassing them and making threats against them. If people happen to have a job, they may be in the process of having their wages garnished.

One initial benefit of filing for bankruptcy is that it stops creditors from hounding consumers. Once the paperwork is filed, creditors are no longer allowed to directly contact the borrower as all their communication goes through the court. That can be a load off their shoulders at a difficult time.

The obvious long-term benefit of bankruptcy is the ability to shed debt that has made life extremely difficult. In many cases, all the debt can be vanquished without a person losing their assets. In some cases, they may have to sell some things to pay off their debt and if they file Chapter 13 bankruptcy in Chicago, they can set up a payment plan to pay off debt.

Back to the employment numbers.

The CNNMoney story reports that experts had predicted about 110,000 jobs would be added, so the new numbers surpassed their predictions. Government jobs actually decreased by about 20,000, though private sector jobs were bumped up by about 140,000.

The majority of jobs were added in retail -- 50,000 ---and hospitality, such as hotels and restaurants -- 20,000. An interesting point to the story is that the Labor Department's numbers are adjusted to take into consideration seasonal trends, so the holiday hiring season isn't all to credit for the job growth.

Still, there are 13.3 million people out of work and 43 percent of those people haven't had a job in six months or more. Less than 1/3 of the 8.8 million jobs that have been lost in recent years still haven't been recovered.

Let's hope our country's economy keeps this momentum going into the new year and stock prices, real estate prices and numbers of hires continue to increase. This is a critical time for our nation and our Chicago bankruptcy lawyers hope the recovery continues.

Continue reading "Jobs Up, Unemployment Down, But Chicago Bankruptcy Still a Viable Option " »

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" »

More bad news out of Atlanta, this time from The Atlanta Journal-Constitution -- the newspaper reports that the metro area's unemployment rate went up again in August, from 10.3 to 10.4 percent.

That may not seem like a big jump, but what it shows is that the local economy, like the national economy, isn't getting any better. Layoffs in construction, food services, accommodations, trades, and administration and support staff have left people scrambling for jobs.

Unemployment continues to negatively affect the U.S. economy, and the Great Recession is leaving some people to think about a future with less money or even a complete lack of income. For many consumers, it's a matter of trying to get by, as they are attempting to pay back bills with side jobs, selling assets and taking advantage of other strategies.

But this probably isn't working. They are slipping further and further into debt as interest rates increase, making minimum payments on purchases that result in the merchandise or service being even more expensive, and for some falling behind on mortgage payments. Unfortunately, this situation often leads to foreclosure in Atlanta. But these people should take the time to consult with an experienced Atlanta bankruptcy lawyer who can explain the benefits of bankruptcy and the options consumers have at their disposal.

Bankruptcy laws are some of the only laws that are designed to help protect the consumer. They were enacted in order to give people a second chance after experiencing unforeseeable problems such as job loss, overwhelming medical expenses, predatory lending practices, or poor spending habits. All of these situations could be relieved through bankruptcy.

Mounting debts can be discharged, for instance, and those who own a house can often stay in their homes while the process is ongoing. In many cases, a person can have all of his or her debts relieved, making it possible to move on with life after the process is completed in much better shape than when they filed.

According to the newspaper, Clayton County had the highest jobless rate at 13 percent in August in the area. Clayton County is followed by Fulton County at 11 percent, DeKalb County at 10.8 percent, Cobb County at 9.6 percent and Gwinnett County at 9.3 percent.

In the city of Atlanta, the jobless rate was 11.7 percent, which was up slightly from 11.5 percent in July. Statewide, the jobless rate is 10.2 percent. This is the 49th consecutive month that Georgia has exceeded the national unemployment rate, which stands at 9.1 percent.

Not having a job can be terrifying, and it's obvious that little is being done to bring new companies and new jobs to Georgia. It is painfully apparent that citizens here continue to struggle to find employment opportunities, while residents of some other states may have more choices to find meaningful work.

Many people choose to try to squeak by with minimum payments, while dealing with hounding collection agency workers and harassing bank officials. But there is a better way through bankruptcy, which stops creditors from calling while the process is ongoing. And after debts have been discharged, the consumer can again live his or her life free from the debt that has trapped them for much of the last few years.

Continue reading "Atlanta Bankruptcy an Option as Georgia Jobless Rate Increases" »

More than two months after Americans got a small paycheck boost courtesy of Uncle Sam, the verdict is in: it's not working.

The goal of rolling back Social Security payroll taxes by 2 percent was to encourage consumers to spend more, thus stimulating the economy. But with the cost of living rising faster than expected and people preparing to pay income taxes, folks are actually spending less, say Chicago bankruptcy attorneys.

Continue reading "Rising Costs of Food and Gas Affecting Payroll Tax Cut" »

Remember the paycheck raise you got back in January? No? You're not the only one.

In 2011, Uncle Sam boosted most people's paychecks by rolling back Social Security payroll taxes from 6.2 to 4.2 percent. Less money withheld meant fatter paychecks. But unfortunately, most of us haven't even noticed, say Atlanta bankruptcy attorneys. That's because the rapidly-rising cost of living is canceling out our federally-funded raise.

Continue reading "Payroll Tax Cut Canceled Out By Increasing Food and Fuel Costs" »

Chances are there's a surprise from your employer on its way to your mailbox, and it's not a Christmas card.

As they seem to do every year, health care premiums are going up in January, note Chicago bankruptcy attorneys. And employers are passing those costs on to us. Sometimes insurers will include a vague reference to costs associated with the federal healthcare reform as explanation for the hike, and sometimes they'll provide no reason at all. But while insurance companies can play it off like no big deal, a 20 percent increase in monthly payments presents a real problem for Americans hoping to get their spending on track for 2011.

Continue reading "Employer Health Insurance Premiums Rise for Chicago Workers" »

Many workers hoping for a bonus from their employers this month received something a lot less pleasant: a memo stating that their health insurance premium will go up next year.

Health insurance companies are raising rates on employers, who are in turn passing the costs on to us. Insurers often place blame on expenses associated with healthcare reform, but the truth is, health costs have increased every January for years. We should be used to it by now - but that doesn't make it any less painful for those of us who are already struggling to pay the bills as it is, say Atlanta bankruptcy attorneys.

Fortunately, we still have some say in the matter.

Continue reading "Health Insurance Companies Increase Premiums for Atlanta Employees" »

What would you do with an extra $1,000 or more a year? You might be about to find out.

Part of the tax plan between President Obama and Congressional Republicans includes a 2 percent cut in Social Security payroll taxes. So if you're making $60,000 annually, for instance, you'll get to keep an additional $1,200 of your income each year. In the great scheme of things, it might seem like a fairly insignificant amount - but it depends on how you use it, say Atlanta bankruptcy attorneys.

Continue reading "Tax Cut Agreement Could Help Atlanta Workers Lower Debt" »

It looks like American workers could be getting a raise next year, albeit a small one.

If the tax agreement between President Obama and legislators passes, one of the provisions will reduce the Social Security payroll tax rate from 6.2 percent to 4.2 percent. For someone making $60,000 a year, that's an extra $1,200 in annual take home pay - or the equivalent of another $25 a week. It might not seem like much, but if you're looking for ways to make ends meet, any little bit can help, say Chicago bankruptcy attorneys.

Continue reading "How Bush Tax Cut Extension Could Affect Chicago Workers With Debts" »

They say home is where the heart is - maybe it's time to put our money there, too. At least, that's the theory behind Small Business Saturday.

Never mind that the campaign, which starts today, is backed by credit giant American Express - who happens to be offering an incentive in the form of $25 credit to the first 200,000 folks who register their AmEx cards on the SmallBusinessSaturday.com. It's a way to pump money into the local economy - and in theory, back into our own bank accounts. And that's good news for those of us with debilitating personal debt, say Atlanta bankruptcy attorneys.

Continue reading "Atlanta Consumers Encouraged to Shop Local and Save Money Today" »