Atlanta Bankruptcy Attorney

Too Much Debt? Here Are Helpful Options!

2010-06-04T10:00:00.000-04:00

Finding yourself in debt is no fun. Unfortunately, locating information on ways to get back to a solid financial ground can be difficult and frequently confusing. Hopefully, a few minutes with this article will help clarify the landscape and provide a logical starting point.

If you have a small amount of debt you may be able to take control directly. Often, people will be underwater by only a few thousands dollars and struggling because of a high interest rate. What people often don't consider is that you can call your credit card company directly and ask to change the terms of your debt. Very few people would buy a house or a car without haggling a least a little bit - extend this mentality to your credit debt. Your credit provider will likely be willing to work with you in order to help you avoid bankruptcy. If you go bankrupt they will receive no money so it behooves them to be flexible. Keep in mind that your credit limit will likely be lowered to your outstanding debt amount.

If you are not the do-it-yourself type or have a balance on multiple cards, you might want to call a financial counselor. Such a counselor can assess your entire financial situation and suggest changes to your budget that will enable you to free up money to pay down your credit debt. Often the support of a third party will help you stick to a new financial plan. Credit counselor typically charge a small fee of less than $50.

If your situation is more dire, you might need the help of a credit counseling agency. The agency will contact all of your creditors and negotiate better terms so that you can actually service your debt and not fall further and further behind. In fact, they are often able to cut your interest rates in half or less. Usually, late fees and over limit fees stop as well.

Once a plan is in place, you pay a lump sum to the agency who distributes the amount across all of your creditors. Agencies typically charge a monthly fee of $20 to $40. Expect to be working with the agency for several years.

If your situation is so dire that an agency would be unable to help, you may need to file bankruptcy. This may be the case if you are many thousands of dollars in debt and lost your job. Or perhaps you have hundreds of thousands of dollars in medical bills. Bankruptcy is generally to be avoided so make sure your situation really is unrepairable before choosing this option. However, getting a clean start is better than suffering through the pain of a debt you can't possibly repay.

If bankruptcy is needed, be sure to contact several attorneys that specialize in this area of law. You don't want to be somebody's experiment into a new practice area.

It is common practice for an attorney to offer a free thirty minute consultation. Be certain to ask many questions during this time to make sure you are comfortable with the attorney and the firm. They are going to be dealing with a very personal part of your life and discomfort is not helpful to the process.

Taking action on some level now is much better than waiting no matter what your situation is. Time is not on your side when you have a debt load that you are not servicing well. Pick up the phone and call for help - today!

For more information regarding financial help and bankruptcy visit www.GallerLaw.com.

Article independently authored by Eric Parish. The content herein may or may not reflect the views and opinions of Galler Law.

Repair Your Credit and Avoid Extra Expenses and Inconvenience

2010-02-02T12:52:00.003-05:00

Has life dealt you a poor hand recently causing you to be a bit slow to paying bills - or even missing several payments? If so, your credit score has likely been damaged and is in need of repair. In the worst of situations, you might even be faced with filing for bankruptcy.

It is important to start repairing your credit score as rapidly as possible since possessing a poor score can negatively impact your life in several ways. For instance, you may not be able to obtain a home or automobile loan and if you do secure financing the interest rate will be much higher than it would have been otherwise. A low credit score can also make it more difficult to rent an apartment or even gain employment. Many landlords run credit checks on potential tenants and certain job titles require a check with a good score a requirement for employment. In short, repairing your credit score sooner rather than later can help avoid many headaches and extra expense resulting from higher loan interest rates.

Fortunately, credit repair is something that you can undertake yourself. However, you will need to be exacting and persistent if you are to be successful. First, commit to working on credit repair over the course of a year and perhaps longer if your credit score is severely damaged. Repairing your credit is not something that can be done in a few weeks or months.

The first step is to obtain a credit report from each of the three credit bureaus - Transunion, Experian and Equifax. These bureaus monitor and report consumer credit worthiness to potential lenders. You are entitled to one free report from each bureau annually per federal law. Additionally, you may obtain another report if a creditor takes an adverse action against you.

After obtaining the reports, closely review each of them looking for errors. Common errors are inaccurate personal information, incorrect Social Security number, wrong date of birth, or a prior address listed as your current address. Additionally, it is not uncommon for "closed" accounts to be listed as "open" with the associated debt still weighing down your credit score. Also, you might find that a mortgage or other loan is listed twice. Be vigilant when reviewing the reports since studies have shown that roughly 80% of credit reports have some kind of error or omission.

Should you find any errors, report them to the appropriate credit bureau. Do this by writing a brief letter stating the issue and by enclosing a copy of any supporting documentation. Do not send originals as you need them for your file. Upon receiving your letter, the bureau has thirty days to investigate the issue and reply back to you. If you have not heard from the bureau within thirty days, resend your letter and supporting documentation. If you are correct and an error is found, they are required to adhere to very particular procedures and fix the error.

The second step in the credit repair process is stopping any more damage from accumulating. If you are having trouble meeting your monthly obligations, telephone your creditors to negotiate repayment terms. Often creditors will work with you since they want to avoid having you default on the loan. Perhaps they will extend the amount of time you have to pay back the loan and concurrently lower the monthly payment. Maybe simply changing the due date would allow you to pay on time as the change would allow for improved cash flow.

Finally, close credit accounts that you no longer use and pay down your down credit card bills as quickly as possible. Do not let your total credit card debt start approaching the total amount of credit you have available. For instance, owing $5,000 in credit card debt with a $10,000 total credit line is much easier on your credit score than owing $5,000 with only a $6,000 credit line available. The key factor is how close you are to being "maxed out" and having zero credit available. Your best course of action, however, is to pay off your credit cards each month and not revolve debt month-to-month.

By following these steps, you can go a long way toward fixing your credit and avoiding the inconvenience and expense associated with a low credit score.

For more information and guidance about repairing your credit and bankruptcy procedures, one informative source of information is http://www.GallerLaw.com. Galler Law, an Atlanta GA law firm, specializes in bankruptcy cases.

Posted by WebDrafter.com, Inc. with permission.
Article independently authored by Eric Parish. The content herein may or may not reflect the views and opinions of The Galler Law Firm.

Pulled Over For Drinking and Driving - What to Do?

2010-01-29T12:30:00.001-05:00

It is not a happy moment in your life - the flashing lights of a police car are in your rear view mirror and you have been drinking. This is a very stressful situation and knowing what to do ahead of time can help you manage the moment in the best way possible.

The first thing is to find a safe place to pull over and stop. Next, do not make any sudden moves, stay in your car and keep your hands in plain view. Getting out, reaching under the seat or otherwise moving around forces an officer to infer what your intentions are. What might be an innocent move can be incorrectly interpreted as threatening, leading to an escalation in the officers actions. Once the officer reaches your window, be polite. Being rude or combative is not going to help.

If the officer suspects you to be under the influence of alcohol he or she will ask if you have been drinking. You are under no obligation to answer this question or any others as you have the right against self-incrimination. You may simply state that you have been advised not to answer questions. If you do answer - tell the truth. If you are asked to get out of the car, you are almost certainly going to be arrested.

You might want to consider declining to participate in field sobriety tests as you are under no obligation to take them. Such tests can only work against you as the results are highly subjective and difficult to pass when sober let alone under the influence. Common tests are following the tip of a pen with your eyes, standing on one leg or reciting the alphabet in some fashion. Additionally, you may also be asked to take a roadside breath test (PBT). Frequent advice is to decline this test as well since the devices are very unreliable. Remember all of the roadside tests are designed to gather evidence of your intoxication. Refusing to take them gives the police and the prosecution less evidence to work with and makes their case more difficult to prove.

If you are arrested, you will be asked to take the official state test of either blood, breath or urine. This test will be administered at the detention center or a medical facility. At your expense, you can ask to be taken to an independent medical facility for the test. Failure to take this test will result in the revocation of your license for one year and should rarely be declined. However, if you are were involved in an accident, have a previous DUI or had children in the car you should contact an attorney for advice before taking the state test as it may be in your best interests to decline.

Finally, bear in mind that once taken into custody you are likely being audio and/or video recorded. Anything you say could be used against you. Of course, the best way to avoid all of this stress is to not drive under the influence. Catch a cab, have a friend drive you home - a DUI is expensive, time consuming and very unpleasant to deal with. Altering your plans because you have to much to drink is a small price to avoid the flashing lights in your mirror.

Attorney websites like http://www.Gallerlaw.com are great for researching information and providing insight on topics such as Driving While Intoxicated (or Driving Under the Influence) situations where a lot is at stake.

Posted by WebDrafter.com, Inc. with permission.
Article independently authored by Eric Parish. The content herein may or may not reflect the views and opinions of The Galler Law Firm.

Bankruptcy - Which Chapter Should I File Under?

2010-01-26T12:20:00.003-05:00

It can happen to the best of us. Perhaps you suffer a prolonged or serious illness and have run up large medical bills or perhaps you are laid off and are forced to use your credit cards to pay the monthly bills. No matter how it happens, you are looking at a debt load that you are unable to pay or are getting more and more behind on each month. If you find yourself in this difficult position, you might want to consider filing for bankruptcy.

Personal bankruptcy can be filed either as a Chapter 7 or as Chapter 13. Each are designed to give you a clean slate so that you can build a new life without being hampered by pre-existing debt.

Chapter 7 is what most people call to mind when thinking about bankruptcy. At the end of approximately six months, all of your debt is wiped away with just a few exceptions including student loans and taxes. These debts will survive the bankruptcy and you still be required to pay on them. However, Chapter 7 does eliminate debt where people are most likely to be in trouble such as credit cards and medical bills. The debt is simply discharged and you are no longer liable no matter what happens subsequent to your bankruptcy. Unfortunately, not everyone can qualify for Chapter 7.

Every six months the state's median income is reevaluated and your income must fall below this number in order to automatically qualify for Chapter 7. If your income is above the median, you can still qualify by satisfying a secondary test called the means test that involves digging into your financial situation a bit more.

Additionally, in order to keep your home or car under Chapter 7, your payments must be current. If you are not able to qualify for Chapter 7 as a result of your higher income or being behind on auto or home payments, you would be forced to file Chapter 13.

Chapter 13 bankruptcy is designed for people who have sufficient resources to pay back some of their debt but are simply a few months behind on payments. Payback is facilitated by developing a court approved plan to repay creditors over the course of three to five years. In short, your "important" creditors - mortgage, auto loan, and taxes - are paid in full during the plan and the less important creditors are paid what you are able to pay based on your financial situation. Any remaining unsecured debt such as credit card debts are generally discharged at the completion of the plan.

A bankruptcy is not a decision to take lightly because it will remain on your credit history for up to ten years. Only file for bankruptcy as a last resort since it can make getting loans more difficult and often force you to accept a higher interest rate on loans you are able to obtain.

Additionally, after completing either form of bankruptcy, it is advisable to sit down with a financial planner. A planner will be able to develop a strategy to keep you on sound monetary ground and help you develop good fiscal habits. Take the breathing room the bankruptcy has provided and build a solid financial foundation to last for the remainder of your life.

For more information and guidance about filing for bankruptcy, visit http://www.GallerLaw.com. Galler Law specializes in motor vehicle, worker's compensation and bankruptcy law in the Atlanta, Georgia area and has a list of the information you will need to bring to a bankruptcy attorney if you hire one.

Posted by WebDrafter.com, Inc. with permission.
Article independently authored by Eric Parish. The content herein may or may not reflect the views and opinions of The Galler Law Firm.

When the Creditors Keep Calling - Bankruptcy is Financially Stressful Enough Without Harassment

2009-10-26T20:57:00.003-04:00

Financial instability can be a major cause of stress to a person or family. Being in debt and receiving harassing phone calls and letters can compound this stress. These harassing calls may occur at home and even at work, risking job security. Laws are currently in place to keep these calls from happening and to punish the creditors who do not follow them.

Debt collectors need to follow strict rules when it comes to communication about debt. The calls may not announce the debt to the person answering the telephone and the calls must go through an attorney if one represents the debtor. Any calls should be made between the hours of 8am and 9pm only, and no calls should be made to places of employment if prohibited by the employer. These calls should never consist of profanity, threats, or false representation. If collectors do not adhere to these rules, as well as other stated in the Fair Debt Collection Practices Act, the debtor may be allowed legal recourse.

Bankruptcy will also get these calls to discontinue. During the bankruptcy process, the creditors are contacted and either a plan of repayment or dissolution is reached. An attorney helps file the necessary paperwork for the bankruptcy and also communicates with the creditors as mentioned above. Depending on the type filed, the bankruptcy process contains quite a few steps, which will be made easier with the help of a qualified attorney.

A fresh start to finances can help with stress in many different ways. Bankruptcy may never be an easy decision or a fast path to travel, but it can assist debtors in starting over. Credit counseling is a typical part of the process to help keep the pattern from repeating. All in all, bankruptcy with a proper attorney's guidance can ease a debtor back into the world of financial freedom.

For more information and guidance about bankruptcy issues and considerations, visit http://www.gallerlaw.com. Galler Law specializes in Bankruptcy law and protection.

Avoid Financial Cons Which Will Damage Future Credit History Far More Than Bankruptcy Ever Could

2009-10-14T11:45:00.002-04:00

"Debt consolidation for free", "no cost debt relief", "free credit counseling to end credit card debt", or "get out of debt fast" are sales pitches which almost everyone has heard or seen on radio, television, or in print. These pitches should be grouped with all of the other "get rich quick" schemes and pyramid scandals that have prospered in recent decades.

The truth is if it sounds too good to be true, it almost always is. While there are some legitimate debt consolidation companies out there, a large number of them are in fact fly by night operations in which after gaining a customers confidence, exploit and leave the victim in a worse financial state than before. With the proliferation of website businesses, it can be very difficult to determine which debt consolidation companies are legitimate and which are scams.

Because the financial market fluctuates constantly and banking institutions, lending laws, and credit reporting agencies are constantly changing the rules, promises and guarantees of getting out of debt quickly or instant "debt forgiveness" are warning signs to avoid. Debt consolidation and debt reduction is just that, reduction of the amount owed. The debt still exists, but in smaller payments and with lower interest rates.

The key to reducing debt and eliminating debt isn't a magic phone number, but a structured adjustment and manipulation of spending habits which will allow an individual or family to live within their financial means. A large percentage of individuals can find this exceedingly difficult and end up declaring bankruptcy regardless. Many well known and prominent people have experienced this same problem despite having millions of dollars. Bankruptcy has not damaged their financial success.

That is because declaring bankruptcy is not the financial failure of an individual, but the beginning of creating a solid financial base from which to grow and improve upon in order to recreate a sound financial credit history. Again the key is to moderate spending habits after bankruptcy to ensure financial stability in an unstable economy. Banking institutions and credit unions usually have financial advisors on hand. Many bankruptcy attorneys also provide financial advice or can refer individuals to qualified financial advisors to help clients achieve their goals.

For more information and guidance about declaring bankruptcy and protecting assets through the bankruptcy process, visit http://www.gallerlaw.com. The Galler Law Firm, LLC. specializes in bankruptcy and debt consolidation, as well as, worker's compensation and motor vehicle accident representation.

Bankruptcy - Learning Better Spending Habits will Prevent this Financial Do-Over-Agail

2009-10-01T11:04:00.002-04:00

Filing for bankruptcy cannot make one better with handling money, but it can allow for a fresh start. When the decision is made to file, a qualified attorney should be contacted. The attorney will help to follow the correct path and assure that the paperwork is completed properly. The first noticeable occurrence is that the creditors will cease calling. This is a result of the bankruptcy petition filed in the courts. The creditors must stop collections proceedings once they receive notice of the bankruptcy petition. If a creditor fails to cease the proceedings, they may be subject to fees and court sanctions. The bankruptcy petition becomes a matter of public record. This is not a confidential process, however, only creditors will be physically notified by the courts.

The next step in the process is a court hearing. This usually occurs a month after the petition filing. The hearing is led by a bankruptcy trustee, not a judge, and is the first meeting of the creditors. The debtor will be under oath for this hearing and is required to answer questions about the previously filed paperwork, assets and debts. Creditors may also ask the debtor questions at this time. In most cases a primary residence and vehicle may be kept, unless a payment agreement with the creditor cannot be reached.

Bankruptcy is seen on a credit report for seven to ten years. While it is an option to receive a credit card after bankruptcy, one must be careful not to fall back in the same habits. Most companies that issue credit cards after bankruptcy either keep limits low or interest rates high to help deter debtors from resorting to past patterns. Secured credit cards are also another option. These cards are backed with money that the debtor has already contributed. In ways, these are much like debit cards.

Bankruptcy can typically not expel student loan debt, unless there are extenuating circumstances. If a student loan was provided by the government, it must be repaid. However, if it is not a loan from a government institution or if the loan would cause hardship for the debtor or debtor's dependents, the loan may be discharged. Alimony cannot be discharged unless the amount provides more harm to the debtor than benefit to the spouse.

Bankruptcy should always be considered a final option and last resort. Bankruptcy should never be seen as an easy way out or a way to cheat the system. It is a court process where debtors with severe financial situations can be relieved of their debts. By having a qualified attorney to help with this difficult process, the choice of bankruptcy should go smoothly.

For more information and guidance about declaring bankruptcy and protecting assets through the bankruptcy process, visit http://www.gallerlaw.com. The Galler Law Firm, LLC. specializes in bankruptcy and debt consolidation, as well as, worker's compensation and motor vehicle accident representation.

The Mortgage is Close to 90 Days Past Due - Foreclosure Imminent - Consult a Bankruptcy Attorney

2009-08-03T13:10:00.002-04:00

It is true that history repeats itself. In search of a fresh start, the early American settlers and founding fathers, many of whom were bankrupt and penniless, came to the new world. Bankruptcy today is exactly that, a fresh start, but without the cruise across the Atlantic. Bankruptcy protection is no longer a shameful experience of which to take advantage. A few of the nation's most trusted and respected professionals and corporations have taken advantage of this same bankruptcy protection, such as GM, Northwest Airlines, Delta, Lehman Brothers Holding, Inc., Chrysler, and countless more.

Unfortunately, those private citizens that are filing for bankruptcy will not be receiving bailout funds from the U.S. Government as will those major corporations. Because of this lack of extra financial backing, it is imperative that private individuals and families unable to pay debts or losing their home to foreclosure consult an attorney specializing in bankruptcy protection.

Should a family be 90 days past due with the mortgage payment, it is essential to consult a bankruptcy attorney immediately. Many bankruptcy attorneys will make recommendations that will allow a homeowner to continue making payments in order to prevent losing the home.

Shortly after filing bankruptcy, a hearing will be set. One instant benefit of filing for bankruptcy is that every harassing collection call will stop once each lender has been notified of the intent to declare bankruptcy has taken place. Should any lender which is owed money fail to appear at the hearing, will generally forfeit any claim to monies owed. This is not an absolute certainty, though. Certain loans and debts are not forgiven and must be paid back to the lender regardless of declaring bankruptcy or not.

Once the bankruptcy hearing has taken place, many attorney's offices will be able to refer the client to a reputable financial advisor so that the road to financial recovery may be smooth and efficient. Within a year, it will be possible to begin building a positive credit history once again through a credit card. The interest rate will be exceptionally high, but will fall as the client proves financial responsibility.

For more information and guidance about declaring bankruptcy and protecting assets through the bankruptcy process, visit http://www.gallerlaw.com. The Galler Law Firm, LLC. specializes in bankruptcy and debt consolidation, as well as, worker's compensation and motor vehicle accident representation.

Bankruptcy Will Protect You and Your Family...

2009-07-17T11:31:00.001-04:00

But Only if Filing Bankruptcy the Right Way.

Declaring bankruptcy is the end all of last resorts. With personal debts and business debts mounting ever higher and income remaining stagnant or dipping, many individuals, families, and businesses are being forced to consider bankruptcy as a very real option where once it was never a thought. The bankruptcy process is fairly straight forward, however there are many ways in which an individual filing for bankruptcy may bring more disaster upon themselves if they try to do it themselves rather than seeking professional, qualified help.

The first word of caution is to not attempt to declare bankruptcy alone. Experienced bankruptcy attorneys are a very wise asset to utilize. An experienced attorney specializing in bankruptcy asset protection may ensure that the bulk of a families or individual's assets remain untouched by those lenders and banks looking to recover debts owed to them. It may not be possible to retain every last asset, but the bulk of them, such as vehicles, homes, and real estate may remain unaffected. Major problems arise when clients fail to adhere to the instructions of the bankruptcy attorney.

Some individuals try to conceal or fail to disclose all of their assets in hopes that the will retain them. Failing to disclose all debts and assets to a bankruptcy attorney eliminates the chance that the attorney will be able to assist in the retention and protection of said assets. When a client tries to "get over" on the courts and lenders, it usually ends in a fraud situation which will prove much worse than before declaring bankruptcy.

If an individual or family is seeking bankruptcy protection, it has been tried unsuccessfully to transfer titles of ownership of vehicles and real estate to other family members in the hopes that lien holders would be unable to lay claim to the property. The courts and lenders may very well view this as fraud and deception which does not help in the disposition of filing for bankruptcy hearing.

Before any decisions and actions are taken regarding such a delicate situation as declaring bankruptcy, consulting an experienced bankruptcy attorney months before the actual filing takes place is paramount in order to salvage any money and property which the client possesses. There are no guarantees with declaring bankruptcy, but an attorney will help minimize the damage.

For more information and guidance about declaring bankruptcy and protecting assets through the bankruptcy process, visit http://www.gallerlaw.com. The Galler Law Firm, LLC. specializes in bankruptcy and debt consolidation, as well as, worker's compensation and motor vehicle accident representation.

Bankruptcy Attorney - Protect Your Home, Assets, and Family's Future in Hard Times

2009-07-14T12:27:00.000-04:00

The thought of needing to claim bankruptcy is a scary one. Unfortunately, it is an all too common occurrence in today's economy. Before the 1980's, individuals that declared bankruptcy were often viewed as failures or deadbeats. With the unparalleled prolific rise of tabloids and gossip television broadcasts, news of highly affluent and financially successful individuals that have claimed bankruptcy are constantly surfacing. If exceptionally wealthy individuals have claimed bankruptcy during a strong economy then it's perfectly reasonable that every other average income family or individual during a recession would be hit harder financially.

The stigma of being a "worthless failure" is no longer associated with bankruptcy as more and more large cornerstone companies, financial investors, and banks are filing for bankruptcy protection. These organizations are "in the know" and still have declined financially to the point where they seek bankruptcy protection. Note the key word: protection. The car industry, the airline industry, and the banking industry have all jumped on the "bailout and protection" bandwagon. In other words, bankruptcy is a tool, not a financial disease.

Even though all of this is small consolation, filing for bankruptcy still creates an apprehensive situation that requires an experienced hand. There are many subtleties and "strings attached" to claiming bankruptcy since new bankruptcy laws have been enacted. An experienced bankruptcy attorney with several years under their belt is a much needed resource in order to reasonably ensure that all real assets, vehicles, and investments are kept secure from being lost or forfeited when declaring bankruptcy.

A consultation is recommended several months before any paperwork is filed with the courts. The purpose of the consultation is so that the client and attorney may discuss and formulate a timeline and steps needed in order to protect personal assets and investments. Without an experienced attorney as a guide, lenders and banks will very possibly be able to come back and legally levy liens or garnish wages in order to collect on past debts.

Two recommendations which can not be stressed enough is to avoid the do-it-yourself bankruptcy kits that are commonly found in the office supply stores and be wary of the online do-it-yourself bankruptcy websites. While each of these methods will give glimpses of the process and actual filing of the bankruptcy court papers, these are not all inclusive to every individual's situation. Even if an individual does not own any real property or vehicles, relying on the do-it-yourself bankruptcy method will still cost you more in the future.

For more information and guidance about declaring bankruptcy and protecting assets through the bankruptcy process, visit http://www.gallerlaw.com . The Galler Law Firm, LLC. specializes in bankruptcy and debt consolidation, as well as, worker's compensation and motor vehicle accident representation.

Look Before You Leap - Considerations Before Filing for Bankruptcy

2009-07-07T12:51:00.000-04:00

Initially, declaring bankruptcy is not a quick process. Several months before the actual filing and declaration of bankruptcy is done, you need to make sure that any savings, investments, and assets are properly protected. If any attempts are made to conceal these assets, your creditors may be able to seize them. By consulting with an attorney that specializes in bankruptcy, this scary and stressful situation can be smoothed out.

Bankruptcy is not the dreaded word it once was. This is due in part to larger corporations, which were once a household name, having declared bankruptcy in the past 15 years. While a person or business declaring bankruptcy used to be viewed as a failure, it is now recognized as a person or entity that has become a victim of the economy or a few poor decisions. However, bankruptcy is not to be taken lightly. If a person can recover from high debt and negative cash flow, they should make every effort to do so. Unfortunately, sometimes there's little or no choice and it is the logical course of action.

With the new laws and regulations recently passed, there are now new restrictions that govern who are able to take advantage of declaring bankruptcy. A financial advisor and bankruptcy attorney are the best options to guide you in declaring bankruptcy. Under no circumstances should anyone ever attempt to file for bankruptcy themselves. Even though you can find do-it-yourself bankruptcy kits, these do not take into account the complex finances with which the majority of us have to deal. If you try to rely on the internet or these do-it-yourself kits, the mistakes will be costly.

If you are thinking about bankruptcy, you need to ask yourself a few questions. What will happen to my house and my vehicles? Can the creditors that I owe take my IRA or other investments such as mutual funds, stocks and bonds, or my savings? What about my credit report and for how long will it be affected? In what way will my credit be affected with those current credit cards that I don't owe a balance? Will I be able to help my children get financial aid for college? Will my business be safe if I declare bankruptcy? Trying to find clear cut answers to these questions that pertain precisely to your individual situation is best left up to an attorney.

When you do decide to seek out a bankruptcy attorney, just remember that there is nothing to be embarrassed about. Everyone has fallen on hard times in the past. We all put our pants on the same way. It's just that some of us have been extremely fortunate to get out from under extreme debt on our own, while some have needed a little help from a professional. By retaining a bankruptcy attorney, you're just initiating a professional relationship just like you would with your hair stylist or mechanic.

For more information and guidance about personal bankruptcy, visit http://www.gallerlaw.com.

The Galler Law Firm is an Atlanta, GA, based law firm specializing in financial matters and bankruptcy law. Their site offers many insightful pointers on important bankruptcy considerations.

Finances and Career Falling Apart?

2009-06-22T12:48:00.001-04:00

Get Legal and Occupational Guidance Early!

As the 2008 presidential election looms closer, the public is becoming anxious as to the negative or positive changes that a new president can bring about regarding the economy. At a more personal level, each and every individual and family that has felt the severe financial crunch of the recession are worried as bankruptcy and foreclosure become a very possible reality.

If bankruptcy is the only alternative to ease one's financial burdens, the majority of professional bankruptcy attorneys would recommend paying only the essentials such as mortgage, utilities, and groceries and to discontinue paying on all credit cards and other forms of revolving credit. This should be done several months in advance to declaring bankruptcy.

A credit score lower than 500 is virtually impossible to repair without declaring bankruptcy. Until recently it had been feasible to receive a loan with a credit score of around 530; however the interest rate would have reached exorbitant heights with almost no chance of paying it back in less than 20 years. With many of the large lenders and banks in serious financial turmoil and near ruin, the days of loose lending have come to a close.

For those individuals that have already declared bankruptcy and are finding it difficult to re-establish a positive credit history, consulting a financial planner or even your human resource office at work may be highly beneficial. Many companies and employers make employees eligible or have access to credit unions which can help a family out with more forgiving interest rates than a bank would be willing to extend.

Unemployment benefits have recently been extended and are now just starting to be utilized by those individuals without jobs. Reliance upon the federal government is a short term "patch" though. The best solution is to take whatever job is available until something better can be found. The local unemployment office has many resources that any individual can make use of without cost in order to find that better job. The key is to actively explore these options instead of glancing through the local newspaper. Employment will come much faster through the use of job fairs and the unemployment office.

For more information and guidance about bankruptcy and asset protection, visit http://www.gallerlaw.com. The Galler Law Firm specializes in helping people recover from financial disaster. Their site offers many insightful pointers on important financial and credit considerations.

Keep Up to $500 More of What You Earn, and Get Out of Debt

2009-06-18T12:44:00.001-04:00

With the current economy heading in what some politicians describe as a recession, to the everyday person, the economy can be said to be spiraling in for a crash landing. The U.S. economy hasn't hit rock bottom yet, but for John (Jane) Q. Public, each and every purse string has been stretched to the limit and for many, they have all but broken. This is no surprise to everyone and most of us are tired of hearing the same thing everyday on the news. What can be done to improve the U.S. economy as a whole and turn it around is largely out of the public's hands. Your options as an individual are challenging at best, but there are a few things you should consider.

The most unpleasant solution is to declare bankruptcy. This is a last resort and should not be considered lightly. With the new laws and restrictions governing bankruptcy and to whom it applies, an attorney that specializes in bankruptcy should be consulted. There is just too much at stake for you to make an error. If you were to make a mistake, the effects can potentially follow you and your loved ones for decades to come.

Alternative steps can be taken and utilized by the majority of those in a negative cash flow. Consult a financial planner or advisor. If you are a disciplined individual, you can probably get some education and undertake changes in habits on your own. Whether you see a financial advisor or not, personal luxuries will have to be sacrificed temporarily for the greater good. Examine your personal expenses. See what luxuries you can live without. There are a few excellent financial software packages that can help you do this yourself. Many of these range from about $50 - $100 depending on what type of personal real property you own and your financial investments. Visit your local computer superstore and look on the shelf under the topic of "financial personal planners."

Some unnecessary "luxuries" that you have become accustomed to probably don't even register in your mind. Most of us can temporarily live without digital cable, premium channels, and free long distance for your land-line phone, especially since most of the current seasons can be found on DVD in 6 months after you are on more financially stable footing. Most people get free long distance included with their cell phone service. Cable TV and home phone service can be temporarily canceled and lived without consequence. Yes, it is inconvenient. But the alternative is much more so. Save the $50 - $100 monthly, and apply it to reducing your debt.

Internet access however has become somewhat of a necessity. You can use this necessary expense to your full advantage. Pay your bills online and save postage. Apply the savings towards other necessities. Whereas internet access may be important and necessary, many other monthly bills are not. Review your credit card or bank statements for services and subscriptions that are automatically charged each month. The convenience of auto-drafting payments can sometimes make you numb to the fact that money is flowing out of your accounts, painlessly each month. If you signed up for a membership, a service, or a subscription months ago you may not even remember that the money comes out of your account. Go over your most recent statement line-by-line, and note anything you are paying for that you really don't use. Canceling the future billings of those services will often save another $200 to $300 per month.

In all, would an extra $300 to $500 in your pocket each month make a difference in your financial picture? If you take the time to review your spending, you will likely find that you have the means to make a difference in your own financial picture with what you earn already. Leverage your resources differently and you can change your financial outlook without damaging your credit rating in a bankruptcy. The key is to avoid wasteful and change unnecessary spending.

For more information and guidance about avoiding bankruptcy, visit http://www.gallerlaw.com The Galler Law Firm specializes in helping people financially, and is experienced in helping people through bankruptcies and reorganization. Their site offers many insightful pointers on important financial considerations.

Don't Lose Your Home to Foreclosure

2009-06-15T12:42:00.002-04:00

If you are facing imminent foreclosure or can't see any alternative to your mounting debt that is leading up to foreclosure, pay very close attention to the following words. Even though this information pertains directly to any property owner in the state of Georgia, any property owner throughout the U.S. should be aware of this information in that it can be useful to them depending upon their state laws.

Before July 1, 2008, Georgia state law permitted immediate foreclosure of properties with just a mere 15 days advanced notice. This minimal notice made it all, but impossible for the average home owner to defend themselves from losing their home. The only mandate that Georgia law required was an advertisement of the foreclosure in a legal newspaper for a mere 4 week period leading up to the date of foreclosure. This meant that while the property owner may not be aware of the impending foreclosure, everyone else could have advance notice.

All of this has changed as of July 1, 2008. Thanks to a bill, signed by the governor of Georgia on May 13, 2008, the law now introduces a level of fairness with regards to property foreclosure. The notice given to property owners informing them of their property foreclosure sale can not be less than 30 days. The certified letter informing the property owner of the foreclosure now is required to list the name, address, and contact phone number of the actual agent or representative who has the authority to alter and negotiate the terms of the mortgage with the property owner. Prior to July 1, 2008, this information was not always readily or accurately apparent which hindered the property owner's ability to retain their property through any legal action. Without knowing this vital information, the property owner was assured of being helpless to stop foreclosure.

The newly enacted law now requires the current mortgage holder to be recorded in the public deed records before the foreclosure proceedings begin. Prior to this new law, it has been known to happen that the wrong entity has foreclosed on property owners. This would mean that the property owner would lose their home, but still retain the full debt to the actual lender. Now there is this safety net to "catch" any of these types of mistakes from occurring and ruining individual's credit needlessly.

Even though this information directly pertains to the state of Georgia, property owners throughout the country can learn a lesson from this and take a few steps to clarify and safeguard their own financial and real estate from the risks of foreclosure. The first step in safeguarding their own interest is to always consult with a professional that specializes in real estate. Information is plentiful throughout the online world, but there comes a point when this information needs to be acted upon. A real estate attorney will be a great asset to have on your side to defend against losing one's largest investment.

For more information and guidance about avoiding foreclosures or general help with bankruptcy procedures to protect your assets, visit http://www.gallerlaw.com. The Galler Law Firm specializes in legally protecting what you have worked so hard to earn. Their site offers many insightful pointers on important considerations.

Know Your Options When Your Financial World Crumbles

2009-06-11T12:38:00.003-04:00

The economy is heading south, foreclosures are at an all-time-high, and if you are under serious financial pressure with the walls closing in, you're not alone. In short, there are a number of factors in today's economy that individually would not be of much significance to your financial situation, but this year they may all come into alignment to create financial hardships for millions of hardworking Americans. Despite the optimistic Congress that may generously be rebating you a few extra tax dollars out of the governments pocket this year, the "economic stimulus" package will not keep you out of bankruptcy.

If a financial crunch happens to you, the pressure and stress of the burden can feel like the weight of the world is upon you. If you find yourself in such a situation, you must know that there are resources and legal ways that you can recover, without losing your residence, transportation, and other possessions..

Last year several major credit card companies changed their minimum payment policies, as well as their interest rates. If you normally pay your bill in full, changes in the credit card agreements may not impact you. However, on a revolving balance the new, higher required payments might take you by surprise and be drawing from money that was earmarked for other purposes. For example, if you took advantage of the subprime lending rates on your home and either refinanced or borrowed against your equity, the added payments from adjustable rates mortgages might be creating an additional financial pinch in the coming months, and money that you had planned to spend on keeping up with your mortgage may now have to be redirected to your monthly credit card bills. The compounding effect of balloon payments and increased minimum payments is further aggravated by any kind of life changing or unforeseen expenses:

Kids going to college?
Car needs new tires to pass inspection?
Tax bill coming due?
Your stock portfolio or IRA lost money?

Complicating matters further, recent changes to bankruptcy laws make it harder to be eligible to file Chapter 7 or Chapter 13. That's not to say that you want to hurt your credit rating or run away from your responsibilities, but in today's complex financial world, but industry and commerce has stacked the deck against you much like how the house has favor in a casino. When the rules change in the middle of the game, it's time to consider your options to free yourself of the financial chains. Commercial enterprise is trying to saddle you with their woes as a consumer. There's nothing that says you need to accept their load and encumber your future so that big business can increase their profit margins.

Go online to your favorite search engine and do a local search for a bankruptcy attorney in your area. Each state is different, so find the best qualified attorney that practices in your area by using keywords like "bankruptcy attorney" or "bankruptcy lawyer", followed by the city and state where you live. When you do a search at the local level such as this, the resulting listing will show you qualified professionals in your surrounding area that can help you reduce or eliminate your debt, while preventing harassing calls from creditors. Getting the right information is just the first step to making an informed decision. There is no shame in protecting your future. You didn't change the laws. You didn't change your payment schedules. And you didn't create the unforeseen circumstances beyond your control. You can, however, take control and minimize the impact on your financial picture in years to come by seeking professional guidance now.

Ask yourself this question: If you do nothing differently in the next six months, will your financial situation improve, worsen, or stay the same? Then answer the question, Are you happy with your current cash flow, debt management, cash reserves, and quality of life? If you don't like the answers to those questions, procrastinating on making a decision to get help is not serving you well. If pride is the culprit keeping you from taking action, it can be difficult to overcome the feelings related to getting assistance. Consider the fact that the laws are in place to help you ease your burden for a reason. If there were not a widespread economic need to address the shortcomings in our financial system, bankruptcy laws would not be available to you. Consider, also, how it would feel to get out from under the anvil of debt that crushes your spirit, steals from your lifestyle, and deprives your family of freedom. Is it time to clear the slate, learn from the past, and make wiser money decisions moving forward? Is it time to live again? The next step is yours.

The Galler Law Firm is a prominent Atlanta, GA, practice specializing in bankruptcy law for twenty years. David Galler is also accomplished and experienced in civil trial and workers' compensation, and has been at the forefront of the alternative dispute resolution movement. Visit the Galler Law Firm at http://www.gallerlaw.com For more information on bankruptcy law practices, visit http://www.georgiabankruptcyattorney.net For more information on successful online business practices, please visit http://www.website411book.com a book authored by Tom Elliott, Website service provider to Galler Law Firm.

Keys to Debt Recovery - Education & Resourcefulness

2008-04-26T14:41:00.001-04:00

Earning your way out of debt is much like the process of dieting. To lose weight you can choose liposuction over dieting and exercise, but in doing so, the solution is just temporary. If you do not change some of the fundamental lifestyle habits you practice, the weight comes back. Managing your way out of debt is comparable in many ways.

You can file for bankruptcy (akin to financial liposuction) but if you don't adjust your spending and saving practices, your debt (the heavy fat burden that weighs you down) will reappear.

Just as with a liposuction (or any other procedure), there is a bit of pain and discomfort with bankruptcy as well. It is better to avoid it altogether if possible, but at some point in evaluating your financial position, leveraging your change of financial habits with some effective financial tools (such as bankruptcy) may be a wise move.

The goal is not to shirk your responsibilities. As previously mentioned, wiping your debt without changing your behavior solves nothing. Many people are able to manage their way out of debt by containing their situation before it compounds. However, often times creditors include terms (or change terms) in your binding contracts that result in increasingly difficult bills to pay. If the situation gets bad enough, you can find yourself with no way out.

Now ask yourself this question. Even if you can manage to change your cash flow to effect a positive result, how long will it take you to eliminate the burden of debt? If your answer is "years", then consider how much time you are losing towards your retirement in order just to break even by climbing out of debt to "zero". By that time, you will likely have lost most of the benefit of compounding interest towards your nest egg. Is it worth it to lose your future security due to current debt? No.

In fact, bankruptcy laws exist, in part, to help people preserve their future security. Our legal system supports your right to prosperity in the face of those who would attempt to contractually indenture you to create an ongoing financial stream for themselves at your expense. Whether you got in over your head due to poor judgment, inexperience, an unforeseen change in circumstance, or by being a victim of predatory lending, filing for bankruptcy (Chapter 7 or Chapter 13) is a legal tool to level the playing field and cut your losses, so you can live, learn, and move on towards a better future.

True, some people abuse the system, and that has given the notion of filing for bankruptcy a negative stigma. Assuming, however, that you uphold higher values and are truly seeking to amend your situation (rather than use the system as a crutch), you really should not overlook the legitimate, legal resources available to you to do so.

Just the same, you should not undertake the process blindly. Take the time to get financial counseling on your debt. Find ways to curtail or reform your spending habits. Consolidate accounts and simplify where you can. Remember, wiping (or reducing) your debt through bankruptcy is not a solution in itself; it is part of a potential solution. The other part is a change in habits and practices. Many a lottery winner lost their fortune as quickly as they received it by mishandling money management through uncontrolled spending. When the money ran out, their spending habits did not change, and hence they ended up worse off than if they had not won the lottery in the first place. Famous athletes and celebrities find themselves in the same boat if they habitually spend what they make as they make it. Financial counseling combined with exercising your legal resources is imperative to prevent the same kind of trend in your household. Otherwise, history will repeat itself and you will be that much worse for the wear. At the end of the day, it's not the amount of money you make that determines your standard of living. It's the amount of money you keep, that can be applied towards securing your future happiness. Are you giving most of your money away in interest payments and fees to creditors?

Examine your finances. If you carry a significant, debilitating debt, it may be time to take action. The debt may come from a variety of reasons: divorce, stock market crash, college tuition, disability, a variable rate mortgage, credit cards, unemployment, the list is endless. Even if your cash flow seems to be improving, if every pay check is spent before you get it and the creditors keep calling back for more, what peace of mind do you have? What quality of life? And thinking forward, what provisions for your future are you making? A combination of debt reduction, financial consolidation, and education through a qualified counselor may be the smartest action to take right now. You have a life to live. Chasing your tail is not the way to live it.

The Galler Law Firm is a prominent Atlanta, GA, practice specializing in bankruptcy law for twenty years. David Galler is also accomplished and experienced in civil trial and workers' compensation, and has been at the forefront of the alternative dispute resolution movement. Visit the Galler Law Firm at http://www.gallerlaw.com. For more information on bankruptcy law practices, visit http://www.georgiabankruptcyattorney.net

For more information on successful online business practices, please visit http://www.website411book.com a book authored by Tom Elliott, Website service provider to Galler Law Firm.

Article Source: http://EzineArticles.com/?expert=David_Galler

File Chapter 13 Bankruptcy in GA

2008-03-16T15:00:00.002-04:00

Who can file a chapter 13 bankruptcy petition in Georgia?

Individuals may file chapter 13 bankruptcy petitions if they:

(1) reside, have a domicile in Georgia for 189 prior to filing case or, a place of business, or property in Georgia;

(2) have a source of regular income; and

(3) on the date the petition is filed owe less than $250,000 in non-contingent, liquidated, unsecured debts and less than $750,000 in non-contingent, liquidated, secured debts.

Corporations and partnerships may not file a chapter 13 bankruptcy petition.

If you filed a prior bankruptcy petition and the prior proceeding was dismissed within the last 180 days, you may not be able to file a second petition and should check 11 U.S.C. sec. 109(g).

Where do you start? The best thing to do is to set up a free consultation with Galler Law Firm to get your questions answered. Call today or schedule online 770-671-8830.

File Chapter 7 Bankruptcy Georgia

2008-03-16T14:25:00.002-04:00

Who can file a Chapter 7 bankruptcy petition in Georgia?

Almost any individual, or corporation may file a chapter 7 bankruptcy petition if he or she resides, has a domicile in Georgia for 180 days prior to filing or a place of business, or property in Georgia. If you filed a prior bankruptcy petition and the prior proceeding was dismissed within the last 180 days, you may not be able to file a second petition and should check 11 U.S.C. sec. 109(g).

You can file a Chapter 7 bankruptcy petition regardless of whether or not you are employed.

If you were granted or denied a chapter 7 discharge in a prior case within the last 6 years or completed a chapter 13 plan in a prior case, you might not be entitled to receive a discharge in bankruptcy and probably are not a candidate for a chapter 7 bankruptcy proceeding. This rule does have some exceptions.

If you have any questions on whether filing is right for you sign up for a free consultation with Galler Law Firm.

Avoid Foreclosure in Atlanta

2008-03-12T10:03:00.002-04:00

The recent agreement by federal regulators and mortgage lenders to freeze interest rates for five years on certain subprime, adjustable rate mortgage loans are intended to help many homeowners avoid foreclosure.

However, for homeowners who have missed mortgage payments and may not qualify for the program, working with a credit counseling agency will allow them to explore alternatives to foreclosure, more commonly known as "workout solutions."

"The agreement announced in early December is an effort to help people with adjustable rate loans stay in their homes," said Suzanne Boas, president of Consumer Credit Counseling Service of Greater Atlanta, Inc. "However, most of the people who are turning to us for help are currently delinquent on their loans, having missed payments for a variety of reasons, ranging from reduced income to large medical expenses. We are working every day to find ways to help these families stay in their homes, too."

Under the agreement announced Dec. 6, borrowers with interest rates scheduled to adjust between January 2008 and July 2010, who are no more than 60 days late and would be unable to afford their new mortgage payments can have their rates frozen for five years.

At CCCS of Greater Atlanta, Inc., certified housing counselors work with homeowners to analyze their current financial situation, communicate with their mortgage lender and outline a variety of options that may allow them to keep their home. If the homeowner has the desire to stay in their home, there are four common plans that CCCS counselors typically explore with their lenders.

Repayment Plan -- This is the most common workout plan for any household that is 1-3 months delinquent on their mortgage payment.

Under this scenario, a homeowner sends in their normal payment plus an additional amount each month that is agreed upon by the mortgage lender. Repayment terms typically span from 3-24 months and the terms of the loan are not changed.

Loan Modification -- A loan modification is a written agreement between the servicer and homeowner that changes one or more of the original loan terms, such as the interest rate, term of the loan or type of mortgage.

Under a loan modification, the monthly payment often is not reduced, though the interest rate usually will not "reset" to a higher rate or will be rolled back to the initial rate. This can be a solution for a family with an adjustable rate loan where the rate has recently increased, or is about to increase.

Forbearance -- A forbearance is similar to a repayment plan, but this agreement usually applies to people who have experienced a major financial setback, such as one-time medical expenses or a temporary loss of income. The borrower must be able to prove that they have a new job or a new source of income to resume making their regular monthly payments in the future

A forbearance allows the homeowner to send in no payment or a reduced payment for a collected during the plan by either doing a reinstatement, a repayment plan, or a loan modification.

Partial Claim (FHA) -- In effect, this is a second loan for anyone with a loan guaranteed by the Federal Housing Administration (FHA). The mortgage loan is brought up to date by securing up to 12 months of past due principle, interest, taxes and insurance in a separate, interest free note that is payable when the original mortgage is paid off.

To qualify, a homeowner must be at least 4 months delinquent on their mortgage loan, but no more than 12 months. The new loan enables them to pay off the amount they are "in arrears" and immediately brings their mortgage loan up to date. There are no extra payments or extra interest. A lien is placed on the home and the amount needed to make the loan current is deducted when the home is sold.

Need help to get started? Contact Galler Law Firm today.

Atlanta Consumer Credit Counseling

2008-03-12T09:58:00.003-04:00

Spending on Gas, Food Jumps 9% in Past Year

ATLANTA, Feb. 14 /PRNewswire-USNewswire/ -- People seeking basic budget counseling from Consumer Credit Counseling Service (CCCS) of Greater Atlanta spent an average of $531 on gas and food in January 2008, 9 percent more than the average of $486 in January 2007.

The nonprofit credit counseling agency, which serves people in all 50 states, provided basic budget counseling to approximately 5,000 individuals in January. The average budget counseling client is 38 years old, had a gross annual income of just under $40,000 and total debt of $25,733. More than half are homeowners.

"There is no doubt that consumers are facing increasingly tough economic times," said Suzanne Boas, president of Consumer Credit Counseling Service (CCCS) of Greater Atlanta. "For many, increases in income do not begin to keep up with the rising cost of necessities."

For the individual calling CCCS in January, the $531 spent on food and gas accounted for about 30% of their monthly living expenses of $1,774.

The increase in spending on gasoline was most dramatic, rising from an average of $182 in January 2007 to $215 in January 2008. Since 2003, average spending on gasoline has almost doubled from its January 2003 low of $112 per month. Average spending on groceries increased 4 percent from January 2007 to January 2008, rising from $303 per month to $316.

CCCS professional counselors offer individual, confidential advice for developing budgets, managing money, using credit wisely and building a savings plan. Counselors will review a person's financial situation and help determine the best possible financial strategies. The counselor will offer solutions to a person's current financial problems, as well as personalized plans for preventing financial pitfalls in the years to come.

This service is available in English or Spanish. People can call for a free budget counseling session today at 1-800-251-CCCS (2227), or can begin an online counseling session at www.cccsinc.org.

About CCCS

Consumer Credit Counseling Service of Greater Atlanta is a 501(c)3 nonprofit community-service agency that provides confidential budget counseling, money management education, debt management programs, bankruptcy counseling and education, and comprehensive housing counseling. The agency serves nearly 400,000 consumers, who are primarily from low- and moderate- income households, in all 50 states.

Consumers can speak to counselors in English and Spanish 24 hours a day, 365 days a year, by phone at 1-800-251-CCCS, and also access the agency's web sites, www.cccsinc.org and www.cccsenespanol.org where live-chat counselors are available around the clock.

SOURCE Consumer Credit Counseling Service of Greater Atlanta, Inc.

Contact Galler Law Firm for a Free Bankrupcty Consultation.

Georgia Bankruptcy Cases on the Rise

2008-03-12T09:37:00.003-04:00

Georgia bankruptcy court filings in the state's northern district, which includes metro Atlanta, rose by nearly 23 percent from 2006 to 2007.

Now Chief Judge Joyce Bihary of the U.S. Bankruptcy Court for the Northern District of Georgia says she expects that number to increase by some 6,000 to 7,000 filings in 2008 -- another troubling indication for an economy that is showing signs of slipping into recession.

Behind only the Eastern District of Michigan, which includes Detroit and is home to the state with the nation's highest unemployment rate, the Northern District of Georgia has the second-most filings in the U.S., Bihary said. That number was 31,435 in 2007, up 22.6 percent from 2006.

Bihary sees the consequences of a market in which incomes exceed the national average but credit scores lag behind the national average.

"People need to be more realistic about what they can really afford," she said. "People who have bought homes -- much more home than they can possibly afford -- are well-advised to find less expensive housing that would meet their needs.

"As a society, we need to do everything we can to increase financial literacy. The need to understand the range of products, mortgage and credit cards, is so pressing."

The court has just eight judges to process cases, which is 13 fewer than the court that serves Los Angeles, the nation's second-largest city. The last time the Northern District of Georgia received an increase in its number of judges was 1993. From 1990 to 2007, the state's population grew by more than 3 million, according to the Web site of the U.S. Census, and the large majority of that growth came in metro Atlanta.

As a result, Bihary said she will put in a request to the Judicial Conference of the United States for two additional judges in June. An act of Congress is necessary to approve the request.

Before the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, many people hurried to file before changes to the law took effect that were not as lenient on filers as the previous terms. Thus, 50,948 claims were filed in 2005, compared with 24,326 in 2006.

Bihary said she considered both of those years "aberrational."

"We are within a few hundred of where we were in the year before the 2001 recession," said Bihary, who has been a bankruptcy judge for more than 20 years and the chief judge in the district since December 2003.

In 2000, the court processed 31,906 filings, 471 less than in 2007. In 2001, the numbers jumped by 6,219. That past experience is why Bihary said she expects the 6,000 to 7,000 increase.

And that's just if a possible recession is proportional to 2000. If it is worse, the number could be more. Many of the individuals who come before the court are driven there by job loss, which results in foreclosures on their homes, Bihary said, and those individuals file Chapter 13 claims.

Chapter 13 is defined as enabling "individuals with regular income to develop a plan to repay all or part of their debts," according to the Web site for the U.S. federal courts. Bihary said that for the first three quarters of the fiscal year 2007, which ended on Sept. 30, 52.88 percent of the cases the Northern District of Georgia confirmed were Chapter 13 filings. Individuals file far more claims than businesses.

Bihary said that one reason for the large number of cases filed in her district is a state law that makes it easier for lenders to foreclose on properties in Georgia than in other states. Many states require a judicial proceeding before a lender can foreclose on a property, but Georgia does not. "Undoubtedly, it's heavily influenced by state laws, but the growth of the population is a huge piece of it [too]."

And subprime lending issues are the usual culprit in this area, as well.

"In the current environment, we're obviously dealing with results of lax lending standards," she said. "One of the positive results of this is that consumers are asking more questions about laws. They're studying more about adjustable rates. Most didn't know they had it."

In 2007, the three Chapter 13 trustees at the Northern District of Georgia processed $180 million worth of payments, leaving one to wonder the true value -- hundreds of millions, if not billions, of dollars -- of debts left unpaid.

Because, as Bihary said, 2005, with what the judge called "pre-emptive" filings, and 2006 were unusual years because of the changes to the law, the most accurate comparison for trustee payments is 2004. That year, trustee payments were $30 million less than 2007 at $149.68 million, according to Yvonne Evans, the clerk of the court.

Georgia Bankruptcy Filings

Total per year

2007 - 31,435
2006 - 24,326
2005 - 50,948*
2004 - 44,737
2003 - 46,339

*Last year before new federal law took effect.

Contact Galler Law Firm for your bankruptcy needs.

How to Prepare for Bankruptcy

2008-01-24T16:41:00.000-05:00

Filing under the bankruptcy code is much like having surgery for a serious medical problem, it is not your first choice but it you have a serious enough issue it may be the best cure for your problem.

If you feel you are ready for to file you should review the list below and consult with an attorney. An attorney can help you plan for the bankruptcy, decide when to file a bankruptcy petition, or even avoid filing for bankruptcy.

1. If you intend to file bankruptcy you should stop using your credit cards. If you borrow money with the specific intent of discharging the debt in bankruptcy instead of paying it back, the debt is not dischargeable. In addition, three specific circumstances are worth mentioning: (a) certain luxury purchases over $1000 within 60 days of the bankruptcy filing are presumed non-dischargeable; (b) cash advances aggregating $1000 within 60 days of the bankruptcy filing are presumed non-dischargeable; and, (c) debts involving materially false financial statements are non-dischargeable under certain circumstances.

2. Don't transfer your assets to friends, family and business associates to protect the assets from your creditors. The transfer may be considered a fraudulent conveyance. If it is, you may lose both the property and your right to a bankruptcy discharge.

3. Don't destroy any business or financial records. You can lose your right to a bankruptcy discharge as a result.

4. Carefully choose the creditors you pay. Some creditors, such as landlords, secured creditors, and some utilities should be paid under most circumstances. If you pay a credit card debt that eventually will be discharged, you may be throwing money away. Your attorney should advise you on what debts should and should not be paid while you prepare to file a bankruptcy petition.

If you live in the Atlanta Georgia area please visit our website and set up a free consultation with one of the attorneys at Galler Law Firm.

Georgia Free Credit Report

2008-01-22T22:13:00.000-05:00

How to Obtain a Copy of Your Credit Report

Free credit reports

Due to the passage of the 2003 Fair and Accurate Credit Transaction Act (FACTA), all Americans are entitled to one free credit report from each of the three major credit reporting agencies -- Equifax, Experian and TransUnion -- upon request every 12 months. There are several ways you can request your free credit report:

Online: Visit AnnualCreditReport.com
Telephone: (877)-322-8228
Mail: Complete the Annual Credit Report Request form and mail it to the following address:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

Residents of Georgia are entitled to one free copy of their credit report each 12 months from each of the three main credit agencies per federal law and one free copy of their credit report each 12 months from each of the three main credit agencies to satisfy their state's law.

The second free report can be obtained by directly calling each credit bureau:

Equifax: 1-800-685-1111 www.equifax.com
Experian: 1-888-397-3742 www.ExperianDirect.com
TransUnion: 1-800-916-8800 www.transunion.com

January Bills & Bankruptcy

2008-01-22T19:31:00.000-05:00

2008 will prove to be the worst financial year in history for many people. As families settle down after a joyous holiday season of togetherness, tensions begin to mount as the merchants cheerfully send out their post-seasonal bills. They’ve made their money. Now it’s time for you to pay up.

“Wait just a minute,” you may be thinking. “How is this year any different than the rest?” Great question. In short, there are a number of factors that individually would not be of much significance, but this year they may all come into alignment to create financial hardships for millions of hardworking Americans.

If it happens to you, the pressure and stress of a financial burden can feel like the weight of the world is upon you. If you find yourself in such a dire financial situation, you must know that there are resources and legal ways that you can recover, without losing your home, your car, or other assets that you worked so hard to attain.

You may recall that many credit card companies changed their minimum payment policies last year. If you normally pay your bill in full but spent a little extra for gifts this past season, the higher required payment might take you by surprise.

If you took advantage of the subprime lending rates on your home and either refinanced or borrowed against your equity, the added payments from adjustable rates mortgages might be creating an additional financial pinch in the coming months.

Complicating matters further, bankruptcy laws changed significantly in 2005, making it harder to qualify for debt forgiveness due to newly imposed income tests to prove eligibility for filing Chapter 7 or Chapter 13.

The icing on the cake, if your (former) employer was kind-hearted enough to keep you on their payroll through the holidays, but unexpectedly slipped you the bad news that your services were no longer needed after the New Year, the combination of all of the above means that your walls are closing in on you, and it can sometimes be difficult (or impossible) to maintain your objectivity.

Help is nearby.

No responsible citizen wants to throw in the towel and fail to meet their financial obligations. But clearly there has been a growing pattern of commercial pressure to lure you into what seems like an unrecoverable situation. Was it a conspiracy? No. There is no need to be paranoid about it. But as oil companies, utility companies, banks, and merchants are reporting record profits, the greed of corporate America has led to an all-time high consumer debt.

The worst part about this depressing picture is that you, the consumer who supports the economy with your hard-earned dollars, is more often a victim of commercial advertising strategies designed to part you from your money. Face it, companies sink millions of dollars into marketing, advertising, and conducting studies to learn how to target you, their valued patron. Unfortunately, you weren’t privy to the results of their research which told them exactly how to hit your hot buttons. On top of that, circumstances beyond your control like increasing mortgage rates, loss of a job, and so on can mount up to devastation.

There are laws in place and tools available to protect your interests if this has happened to you, so do yourself a favor: take a deep breath, pick up the telephone, and make a simple phone call to a qualified financial attorney. Ask for a consultation, and learn what you can do to preserve your livelihood, your assets, your family, and your peace of mind.

To schedule a free consultation visit our website at http://www.gallerlaw.com/galler_bankruptcy.html