AUTOMOBILE TITLE PAWNS AND BANKRUPTCY
Title pawns have become an ever-growing percentage of consumer debt, as they are marketed as a short-term “quick fix” to a budget deficit. Presumably, these loans will allow the consumer to bridge the gap until payday, at which time the loan will be paid off and title returned. Unfortunately, this is rarely the case, and […]
EVOLUTION OF DEBT IN CONSUMER BANKRUPTCY CASES OVER THE LAST 20 YEARS
Having practiced bankruptcy law in Augusta for over 20 years, I have had the opportunity to witness firsthand how consumer debt has changed during that time. While the primary causes that lead to bankruptcy have not changed significantly during that time (unemployment, divorce/separation, health issues and mismanagement), the types of debt involved in the consumer […]
A Consumer’s Post-Foreclosure Liabilities
There are various reasons that may cause a homeowner to default on their home loan. Divorce, separation or unemployment may deprive a consumer of the income necessary to service the home loan, which will eventually lead to the foreclosure of the residence. In some cases the homeowner may try unsuccessfully to save the house through […]
Debt Collection Statistics Released: Common Reasons for Debts to Go into Collection
A recent study concluded that one out of every three adult Americans has at least one debt that has been turned over for collection. However, Georgia had one of the highest rates, with 40% of its adult residents having at least one collection account. Other blogs on this site have discussed how to handle collection […]
POTENTIAL BANKRUPTCY CLIENT PRIVACY PROTECTION
Most bankruptcy attorneys offer a free consultation, and during that consultation they will have the opportunity to review financial documents of the potential client. This usually will include tax returns, pay stubs, bills and bank statements. More complex cases may also require additional information like court judgments, divorce decrees, insurance policies and appraisals. Because the […]
Common Mistakes Which May Prevent Effective Bankruptcy Relief
There is no question that a bankruptcy filing – either under Chapter 7 or Chapter 13 – can provide relief from creditor harassment. Bankruptcy can prevent garnishments , foreclosures, repossessions and collection calls. However, some individuals may find that their bankruptcy options are limited, or even unavailable, due to mistakes or omissions that have occurred […]
BANKRUPTCY EXEMPTIONS: WHAT CAN I PROTECT WHEN I FILE MY CHAPTER 7 BANKRUPTCY CASE IN GEORGIA?
A common concern among individuals filing for a Chapter 7 bankruptcy is that they may lose some of their property to the bankruptcy “estate”. The bankruptcy estate consists of property that the debtor owns at the date of filing, and in some instances that property can be liquidated for the benefit of the creditors. One […]
Reaffirmation Agreements In Chapter 7 Cases: What it means for the Debtor
Chapter 7 bankruptcy allows a consumer to eliminate (“discharge”) their unsecured debt, subject to certain exceptions. [1] With respect to a secured debt, such as a home mortgage or auto loan, the consumer has three options. The first option is that they may “surrender” the collateral in full satisfaction of the debt. For instance, the […]
RECENT BANKRUPTCY COURT OBSERVATIONS
In the process of representing hundreds of clients in Bankruptcy Court – both in Georgia and South Carolina – I have had the opportunity to witness thousands of bankruptcy hearings where debtors were questioned under oath about their finances. The scope of the testimony covers not only what led debtors to have to file for […]
Residential Foreclosure: When it May Make Sense to Just Walk Away
Recent news about housing has been positive, as foreclosures have decreased in comparison to recent years. There are many possible reasons for the reversal of the trend, and many individuals and entities that want to take credit. But this blog will address one of the most difficult questions facing a distressed homeowner in foreclosure – […]