Atlanta Bankruptcies Dip, But That May Be Bad News
So far this year, bankruptcies have fallen about 8 percent nationwide, but experts don't believe this is cause for celebration, The Atlanta Journal-Constitution reports.
Filing for Chapter 7 bankruptcy in Atlanta can be a difficult decision, but clients of Atlanta Bankruptcy Lawyers have found that going through with the process brings with it a sense of freedom from bills, creditors calling and the frustration of living with debt.
For many people, they won't even consider filing for bankruptcy and instead choose to open up another line of credit or get another credit card that puts them even deeper into debt. The interest rate is probably in the high 20s and even making one late payment is disastrous. To those people, Atlanta Bankruptcy Attorneys would encourage setting up a free consultation just to look at the options and see what can be done to help the situation.
According to the newspaper article, some people consider a drop in bankruptcy filings a positive sign that with a national credit downgrade, labor and housing woes, an up-and-down stock market and other frustrations, consumers' credit is actually doing better.
Not so, however, experts say. Many believe that bankruptcies may be down simply because people can't afford the filing fee and because creditors are appling less pressure. The article suggests that there are many people on the brink of bankruptcy, but are hoping that an economic uptick can keep them from filing. If the economy doesn't turn quickly, those people may be forced to file.
Georgia State University law professor Jack Williams told the newspaper that there's no proof that bankruptcy filings have dropped because the individual consumer is in better shape financially.
"The economy hasn't turned," he said, "and, if anything, it may be going back down."
Filing for bankruptcy can cost a few thousand dollars. Some believe that when more people are employed, they will be able to afford to file for bankruptcy protection.
Some people may make too much money to qualify for Chapter 7 bankruptcy, yet can't afford payments under Chapter 13 bankruptcy in Atlanta. These people may be "stuck," the article suggests.
Under Chapter 7 bankruptcy, a person's debts are discharged after going through the process of filing and working with court officials. Chapter 13 bankruptcy, however, allows a person to keep larger assets, such as a house, and make payments to lenders. Consulting a bankruptcy attorney in Atlanta will permit you to make an informed decision about how to best handle your unique financial situation.
Bankruptcy is a complex process and there are many variables that can affect the outcome. While it may be true that people are having a tough time affording the filing fee and other associated fees, others recognize the benefits and have put together enough money to enjoy the benefits of bankruptcy.
Setting up a free consultation to discuss your situation is the first step. It's possible there are alternatives to bankruptcy that can help ease the situation of dealing with the burden of debt.
If you need to speak to an Atlanta bankruptcy attorney call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 today for a free debt analysis.
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Bankruptcies generally falling, but it may not be good news, by David Markiewicz, The Atlanta Journal-Constitution