Atlanta Bankruptcy Rates Expected To Climb In Continuing Economic Decline

To many Georgia residents, it’s no surprise Atlanta ranked 8th in the nation on the Forbes.com list of metropolitan areas with the worst housing markets. The first quarter of 2009 has been a continuation of the declines the area saw through most of 2008. Jobless rates are the highest they have been in the history of the state, and foreclosure rates continue to climb.

Bankruptcy attorneys and financial experts expect that bankruptcy rates will continue to climb until the economy turns around.

Many people may not understand bankruptcy or they are not fully aware of the protections that it provides them.

If you are facing heavy financial burdens, the first thing you should do is talk with a bankruptcy lawyer. A bankruptcy attorney will have a deeper understanding of the different aspects of the law, and the advice that you get will allow you to make informed and educated decisions about your financial future.

Essentially, filing bankruptcy can help you erase or pay off many of the debts you have incurred. Filing for bankruptcy protections will allow you to obtain a start fresh and begin anew with a clean slate.

Statistically, most consumers file chapter 7 bankruptcy, which allows for most debt to be wiped out in about 90 days. There are some limitations. Some debts, such as student loans and child support, are not eligible for discharge in bankruptcy. Chapter 7 will clear most of your unsecured debts, such as credit cards and signature loans (loans for which no collateral was provided).

Changes to bankruptcy laws that went into effect in October 2005 did make it more difficult for consumers to file bankruptcy. One change required that all persons who consider filing for bankruptcy undergo a “means test” to determine if their income level is high enough to support some repayment of their debt.

If in the past six months, the debtor made more than the median income for the state they live in, they must file a chapter 13 bankruptcy case and make payments in an effort to pay off their debt in three to five years.

Chapter 13 bankruptcy does offer benefits. It will stop foreclosure and allow you to catch up mortgage payments over time. It also stop lawsuits, garnishments and even tax levies, so that you can get back in control of your finances.

Understanding your options is essential to protecting your financial future. Getting the assistance of an expert can be extremely valuable. Contact an Atlanta bankruptcy attorney to review your situation and see if bankruptcy is a viable option.